summary
Introduced
In Committee
Crossed Over
Passed
Dead
Introduced Session
112th Congress
Bill Summary
Middle Class and Small Business Tax Relief Act of 2012 - Makes provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) permanent for taxpayers whose adjusted gross incomes do not exceed a specified base amount (i.e., $200,000 for individual taxpayers and $250,000 for married couples filing jointly). Revises income tax rates to increase to 39.6% the maximum income tax rate for taxpayers whose incomes exceed the base amount. Makes provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003 that reduce the tax rate on dividend and capital gains income for taxpayers whose incomes do not exceed the base amount permanent. Increases to 20% the tax rate on dividend and capital gains income for taxpayers whose incomes are above the base amount. Amends the Internal Revenue Code to extend for an additional year: (1) the increased Hope Scholarship tax credit (designated as the American Opportunity Tax Credit), (2) the increase in the refundable portion of the child tax credit, (3) the increased percentage of the earned income tax credit for taxpayers with three or more qualifying children, (4) the disregard of tax refunds for purposes of determining eligibility for certain means tested federal programs, (5) the increased exemption from the alternative minimum tax (AMT) for individual taxpayers, and (6) the offset against the AMT for certain nonrefundable personal tax credits. Extends until December 31, 2013, the estate, gift, and generation-skipping transfer provisions of EGTRRA.
AI Summary
This bill, the Middle Class and Small Business Tax Relief Act of 2012, aims to make certain tax provisions permanent for individuals earning up to $200,000 and married couples earning up to $250,000, while increasing the top income tax rate to 39.6% for those exceeding these income thresholds. It also makes permanent the lower tax rates on dividend and capital gains income for those within the specified income limits, and sets a 20% tax rate on these types of income for higher earners. Additionally, the bill extends for an additional year several tax relief measures originally enacted in 2009, including the American Opportunity Tax Credit (an enhanced version of the Hope Scholarship tax credit), increased child tax credits, and a more generous earned income tax credit for larger families, as well as ensuring that tax refunds are not counted when determining eligibility for certain government assistance programs. It also temporarily extends relief from the Alternative Minimum Tax (AMT), which is a parallel tax system designed to ensure wealthier individuals pay a minimum amount of tax, by increasing the exemption amounts and allowing certain tax credits to offset it. Finally, the bill extends the estate, gift, and generation-skipping transfer tax provisions from the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) until December 31, 2013.
Committee Categories
Budget and Finance
Sponsors (4)
Last Action
Referred to the House Committee on Ways and Means. (on 08/01/2012)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/112th-congress/house-bill/6262/all-info |
| Bill | http://gpo.gov/fdsys/pkg/BILLS-112hr6262ih/pdf/BILLS-112hr6262ih.pdf.pdf |
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