S.Amdt. 2778

SA 2778. Mr. WYDEN submitted an amendment intended to be proposed by
him to the bill H.R. 1, to provide for reconciliation pursuant to title
II of H. Con. Res. 14; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. _____. MODIFICATION OF RATE OF DEDUCTION FOR QUALIFIED
BUSINESS INCOME.

(a) In General.--Section 199A(a) is amended--
(1) in paragraph (2), by redesignating subparagraphs (A)
and (B) as clauses (i) and (ii), respectively, and by moving
such clauses 2 ems to the right,
(2) by redesignating paragraphs (1) and (2) (as so amended)
as subparagraphs (A) and (B), respectively, and by moving
such subparagraphs 2 ems to the right,
(3) by striking ``Deduction.--In the case of'' and
inserting ``Deduction.--
``(1) In general.--In the case of'',
(4) by striking ``20 percent'' in paragraph (1)(B), as so
redesignated, and inserting ``the deduction percentage'', and
(5) by adding at the end the following new paragraph:
``(2) Deduction percentage.--For purposes of this section--
``(A) In general.--The deduction percentage is 30 percent--
``(i) reduced (but not below 20 percent) by 1 percentage
point for every $5,000 (or fraction thereof) by which the
taxpayer's adjusted gross income for the taxable year exceeds
$150,000, and
``(ii) further reduced by 1 percentage point for every
$250,000 (or fraction thereof) by which the taxpayer's
adjusted gross income for the taxable year exceeds
$50,000,000.
``(B) Married individuals filing separate returns.--In the
case of married individuals filing separate returns,
subparagraph (A) shall be applied--
``(i) by substituting `$2,500' for `$5,000' and `$75,000'
for `$150,000' in clause (i), and
``(ii) by substituting `$125,000' for `$250,000' and
`$25,000,000' for `$50,000,000' in clause (ii).
``(C) Adjustment for inflation.--In the case of a taxable
year beginning after 2026, each of the dollar amounts in
subparagraphs (A)(i) and (B)(i) shall be increased by an
amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting `calendar year 2024'
for `calendar year 2016' in subparagraph (A)(ii) thereof.
The amount of any increase under the preceding sentence shall
be rounded as provided in section 1(f)(7).''.
(b) Combined Qualified Business Income Amount.--Section
199A(b)(1)(B) is amended by striking ``20 percent'' and
inserting ``the deduction percentage''.
(c) Deductible Amount.--Section 199A(b)(2)(A) is amended by
striking ``20 percent'' and inserting ``the deduction
percentage''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2025.
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