[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3714 Introduced in Senate (IS)]
112th CONGRESS
2d Session
S. 3714
To alleviate the fiscal cliff, and for other purposes.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Cliff Alleviation at Last Minute
Act'' or the ``CALM Act''.
TITLE I--TAXES
SEC. 101. PERMANENT EXTENSION AND GRADUAL INCREASE IN CERTAIN TAX RATES
ON INCOME, CAPITAL GAINS, AND DIVIDENDS.
(a) 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--
(1) the provisions of, and amendments made by, such Act, or
(2) the amendments made by title III of the Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act of
2010.
(b) Income Tax Rates.--Subsection (i) of section 1 of the Internal
Revenue Code of 1986 is amended--
(1) by inserting ``, and before January 1, 2015'' after
``December 31, 2000'' in subparagraph (A),
(2) 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
(3) 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%''.
------------------------------------------------------------------------
(c) 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''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
SEC. 102. PERMANENT EXTENSION OF ESTATE TAX LAW.
(a) 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--
(1) the provisions of, and amendments made by, title V of
such Act, or
(2) the amendments made by title III of the Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act of
2010.
(b) 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--
(1) by striking ``$5,000,000'' in paragraph (3)(A) and
inserting ``$3,500,000'',
(2) by striking ``2011'' in paragraph (3)(B) and inserting
``2013'', and
(3) by striking ``2010'' in paragraph (3)(B)(ii) and
inserting ``2012''.
(c) 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.''.
(d) 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:
``(h) 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).''.
(e) Repeal of Deadwood.--
(1) Sections 2011, 2057, and 2604 are hereby repealed.
(2) The table of sections for part II of subchapter A of
chapter 11 is amended by striking the item relating to section
2011.
(3) The table of sections for part IV of subchapter A of
chapter 11 is amended by striking the item relating to section
2057.
(4) The table of sections for subchapter A of chapter 13 is
amended by striking the item relating to section 2604.
(f) 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.
TITLE II--DISCRETIONARY SPENDING CUTS
SEC. 201. DISCRETIONARY SPENDING CUTS.
(a) In General.--Section 251A of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 901a) is amended--
(1) 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.'';
(2) by striking paragraphs (5) through (10) and inserting
the following:
``(5) Implementing reductions.--
``(A) 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--
``(i) to discretionary appropriations and
direct spending accounts within function 050
(defense function); and
``(ii) to discretionary appropriations and
direct spending accounts in all other functions
(nondefense functions).
``(B) 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).
``(C) 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
(3) by redesignating paragraph (11) as paragraph (6).
(b) Congressional Disapproval Procedures.--
(1) 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).
(2) 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--
(A) 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
(B) 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.
(3) 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.
(4) 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.
(5) Floor consideration.--
(A) 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.
(B) 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.
(C) 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.
(D) 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.
(6) 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:
(A) The joint resolution of the other House shall
not be referred to a committee.
(B) With respect to a joint resolution of the House
receiving the resolution--
(i) the procedure in that House shall be
the same as if no joint resolution had been
received from the other House; but
(ii) the vote on final passage shall be on
the joint resolution of the other House.
(7) Rules of house of representatives and senate.--This
subsection is enacted by Congress--
(A) 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
(B) 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.
TITLE III--ENTITLEMENT REFORM
SEC. 301. 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
``Sec. 1899B. (a) 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.
``(b) 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.''.
TITLE IV--COMPREHENSIVE TAX REFORM
SEC. 401. SENSE OF SENATE.
It is the sense of the Senate that Congress should address
comprehensive tax reform in the 113th Congress.
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