II
112th CONGRESS
2d Session
S. 3714
IN THE SENATE OF THE UNITED STATES
December 30, 2012
Mr. Manchin introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To alleviate the fiscal cliff, and for other purposes.
Short title
This Act may be cited as
the Cliff Alleviation at Last Minute
Act
or the CALM
Act
.
Taxes
Permanent extension and gradual increase in certain tax rates on income, capital gains, and dividends
In general
Notwithstanding section 901(a)(1) the Economic Growth and Tax Relief Reconciliation Act of 2001 and section 303 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to—
the provisions of, and amendments made by, such Act, or
the amendments made by title III of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
Income tax rates
Subsection (i) of section 1 of the Internal Revenue Code of 1986 is amended—
by inserting
, and before January 1, 2015
after December 31,
2000
in subparagraph (A),
by inserting
(11.6 percent for taxable years beginning in 2013 and 13.3 percent for
taxable years beginning in 2014)
after 10 percent
in
subparagraph (A)(i), and
by striking the last row in the table contained in paragraph (2) and inserting the following:
| 2003 through 2012 | 25.0% | 28.0% | 33.0% | 35.0% |
| 2013 | 26.0% | 29.0% | 34.0% | 36.5% |
| 2014 | 27.0% | 30.0% | 35.0% | 38.0% |
| 2015 and thereafter | 28.0% | 31.0% | 36.0% | 39.6% |
.
Capital gains and dividends
Subparagraph (C) of section 1(h)(1) of the Internal
Revenue Code of 1986 is amended by inserting (16.6 percent for taxable
years beginning in 2013, 18.2 percent for taxable years beginning in 2014, and
20 percent for taxable years beginning after 2014)
after 15
percent
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2012.
Permanent extension of estate tax law
In general
Notwithstanding section 901(a)(2) the Economic Growth and Tax Relief Reconciliation Act of 2001 and section 303 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to—
the provisions of, and amendments made by, title V of such Act, or
the amendments made by title III of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
Exclusion equivalent of unified credit equal to $3,500,000
Subsection (c) of section 2010 of the Internal Revenue Code of 1986, as amended by sections 302(a)(1) and 303(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, is amended—
by striking
$5,000,000
in paragraph (3)(A) and inserting
$3,500,000
,
by striking
2011
in paragraph (3)(B) and inserting 2013
,
and
by striking
2010
in paragraph (3)(B)(ii) and inserting
2012
.
Maximum estate tax rate equal to 45 percent
The table contained in subsection
(c) of section 2001 of the Internal Revenue Code of 1986, as amended by section
302(a)(2) of the Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010, is amended by striking Over $500,000
and
all that follows and inserting the following:
| Over $500,000 but not over $750,000 | $155,800, plus 37 percent of the excess of such amount over $500,000. |
| Over $750,000 but not over $1,000,000 | $248,300, plus 39 percent of the excess of such amount over $750,000. |
| Over $1,000,000 but not over $1,250,000 | $345,800, plus 41 percent of the excess of such amount over $1,000,000. |
| Over $1,250,000 but not over $1,500,000 | $448,300, plus 43 percent of the excess of such amount over $1,250,000. |
| Over $1,500,000 | $555,800, plus 45 percent of the excess of such amount over $1,500,000. |
.
Coordination with gift tax To reflect decrease in applicable credit amount
Section 2001 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
Modification to gift tax To reflect reduced applicable credit amount
The amount determined under section 2505(a)(1) for each calendar year shall not exceed the estate’s applicable credit amount under section 2010(c).
.
Repeal of deadwood
Sections 2011, 2057, and 2604 are hereby repealed.
The table of sections for part II of subchapter A of chapter 11 is amended by striking the item relating to section 2011.
The table of sections for part IV of subchapter A of chapter 11 is amended by striking the item relating to section 2057.
The table of sections for subchapter A of chapter 13 is amended by striking the item relating to section 2604.
Effective date
The amendments made by this section shall apply to estates of decedents dying, generation-skipping transfers, and gifts made, after December 31, 2012.
Discretionary spending cuts
Discretionary spending cuts
In general
Section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901a) is amended—
in paragraph (3), by adding at the end the following:
In calculating the amount of the deficit reduction required for a fiscal year under this paragraph, OMB shall take into account any reduction in expenditures achieved for that fiscal year under the authority under section 1899B of the Social Security Act.
;
by striking paragraphs (5) through (10) and inserting the following:
Implementing reductions
In general
Subject to section 255, for each of fiscal years 2013 through 2021, OMB may determine from which accounts and in what amounts funds shall be reduced in order to achieve the reduction calculated pursuant to paragraph (3) and allocated pursuant to paragraph (4) for that year—
to discretionary appropriations and direct spending accounts within function 050 (defense function); and
to discretionary appropriations and direct spending accounts in all other functions (nondefense functions).
Report
For each of fiscal years 2013 through 2021, OMB shall submit to Congress a report detailing from which accounts and in what amounts OMB has determined funds shall be reduced for the fiscal year under subparagraph (A).
Order
For each of fiscal years 2013 through 2021, the President shall order a sequestration, effective upon issuance, to reduce accounts as determined under subparagraph (A).
; and
by redesignating paragraph (11) as paragraph (6).
Congressional disapproval procedures
Definition
In
this subsection, the term joint resolution
means only a joint
resolution introduced after the date on which the report of the Office of
Management and Budget under section 251A(5)(B) of the Balanced Budget and
Emergency Deficit Control Act of 1985 relating to a fiscal year is received by
Congress, the matter after the resolving clause of which is as follows:
That Congress disapproves the reductions determined by the Office of
Management and Budget for fiscal year ______ as detailed in the report
submitted by the Office of Management and Budget on ______.
(the blank
spaces being appropriately filled in).
Effect of disapproval
For each of fiscal years 2013 through 2021, and notwithstanding section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901a) (as amended by subsection (a)), if, within 60 days after the date on which Congress receives a report under section 251A(5)(B) of the Balanced Budget and Emergency Deficit Control Act of 1985, Congress enacts a joint resolution disapproving the reductions determined by the Office of Management and Budget relating to that fiscal year—
the President may not order a sequestration for that fiscal year under section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985, as in effect on the date of enactment of the joint resolution; and
the President shall order a sequestration for that fiscal year under section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985, as in effect on the day before the date of enactment of this Act.
Referral to committee
A joint resolution introduced in the House of Representatives shall be referred to the Committee on the Budget of the House of Representatives. A joint resolution introduced in the Senate shall be referred to the Committee on the Budget of the Senate. Such a joint resolution may not be reported before the 8th day after its introduction.
Discharge of committee
If the committee to which a joint resolution is referred has not reported such joint resolution at the end of 15 calendar days after its introduction, such committee shall be deemed to be discharged from further consideration of such joint resolution and such joint resolution shall be placed on the appropriate calendar of the House involved.
Floor consideration
In general
When the committee to which a joint resolution is referred has reported, or has been deemed to be discharged (under paragraph (4)) from further consideration of, a joint resolution, it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for any Member of the respective House to move to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion is highly privileged in the House of Representatives and is privileged in the Senate and is not debatable. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the resolution shall remain the unfinished business of the respective House until disposed of.
Debate
Debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion further to limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order. A motion to reconsider the vote by which the joint resolution is agreed to or disagreed to is not in order.
Vote on final passage
Immediately following the conclusion of the debate on a joint resolution, and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the appropriate House, the vote on final passage of the joint resolution shall occur.
Rulings of the chair on procedure
Appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to a joint resolution shall be decided without debate.
Coordination with action by other house
If, before the passage by one House of a joint resolution of that House, that House receives from the other House a joint resolution, then the following procedures shall apply:
The joint resolution of the other House shall not be referred to a committee.
With respect to a joint resolution of the House receiving the resolution—
the procedure in that House shall be the same as if no joint resolution had been received from the other House; but
the vote on final passage shall be on the joint resolution of the other House.
Rules of house of representatives and senate
This subsection is enacted by Congress—
as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution, and it supersedes other rules only to the extent that it is inconsistent with such rules; and
with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.
Entitlement reform
Entitlement reform
Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is amended by adding at the end the following new section:
Reforms
In general
Notwithstanding any provision of this title or any other provision of law, subject to subsection (b), for each of fiscal years 2014 through 2023, the Secretary shall implement reforms under this title that result in reduced expenditures under this title equal to $40,000,000,000 in the fiscal year.
Beneficiary protections
The provisions of section 1899A(c)(2)(A)(ii) shall apply to the reforms under subsection (a) in the same manner as such provisions apply to a proposal under section 1899A.
.
Comprehensive tax reform
Sense of Senate
It is the sense of the Senate that Congress should address comprehensive tax reform in the 113th Congress.