of 1986 is amended by inserting after chapter 2 the following

new chapter:

H. R. 4872—33

‘‘Sec. 1411. Imposition of tax.

there is hereby imposed (in addition to any other tax

imposed by this subtitle) for each taxable year a tax equal

to 3.8 percent of the lesser of—

‘‘(A) net investment income for such taxable year, or

‘‘(B) the excess (if any) of—

‘‘(i) the modified adjusted gross income for such

taxable year, over

‘‘(ii) the threshold amount.

of an estate or trust, there is hereby imposed (in addition

to any other tax imposed by this subtitle) for each taxable

year a tax of 3.8 percent of the lesser of—

‘‘(A) the undistributed net investment income for such

taxable year, or

‘‘(B) the excess (if any) of—

‘‘(i) the adjusted gross income (as defined in section

67(e)) for such taxable year, over

‘‘(ii) the dollar amount at which the highest tax

bracket in section 1(e) begins for such taxable year.

term ‘threshold amount’ means—

‘‘(1) in the case of a taxpayer making a joint return under

section 6013 or a surviving spouse (as defined in section 2(a)),

$250,000,

‘‘(2) in the case of a married taxpayer (as defined in section

under paragraph (1), and

‘‘(3) in any other case, $200,000.

the excess (if any) of—

‘‘(A) the sum of—

‘‘(i) gross income from interest, dividends, annuities,

royalties, and rents, other than such income

which is derived in the ordinary course of a trade

or business not described in paragraph (2),

‘‘(ii) other gross income derived from a trade or

business described in paragraph (2), and

‘‘(iii) net gain (to the extent taken into account

in computing taxable income) attributable to the disposition

of property other than property held in a trade

or business not described in paragraph (2), over

‘‘(B) the deductions allowed by this subtitle which are

properly allocable to such gross income or net gain.

trade or business is described in this paragraph if such trade

or business is—

‘‘(A) a passive activity (within the meaning of section

469) with respect to the taxpayer, or

H. R. 4872—34

‘‘(B) a trade or business of trading in financial

instruments or commodities (as defined in section

475(e)(2)).

apply for purposes of this subsection.

an interest in a partnership or S corporation—

‘‘(A) gain from such disposition shall be taken into

account under clause (iii) of paragraph (1)(A) only to the

extent of the net gain which would be so taken into account

by the transferor if all property of the partnership or S

corporation were sold for fair market value immediately

before the disposition of such interest, and

‘‘(B) a rule similar to the rule of subparagraph (A)

shall apply to a loss from such disposition.

any distribution from a plan or arrangement described in section

401(a), 403(a), 403(b), 408, 408A, or 457(b).

include any item taken into account in determining self-employment

income for such taxable year on which a tax is imposed

by section 1401(b).

chapter, the term ‘modified adjusted gross income’ means adjusted

gross income increased by the excess of—

‘‘(1) the amount excluded from gross income under section

911(a)(1), over

‘‘(2) the amount of any deductions (taken into account

in computing adjusted gross income) or exclusions disallowed

under section 911(d)(6) with respect to the amounts described

in paragraph (1).

to—

‘‘(1) a nonresident alien, or

‘‘(2) a trust all of the unexpired interests in which are

devoted to one or more of the purposes described in section

170(c)(2)(B).’’.

Code of 1986 is amended—

(A) in subsection (a), by striking ‘‘and the tax under

chapter 2’’ and inserting ‘‘the tax under chapter 2, and

the tax under chapter 2A’’; and

(B) in subsection (f)—

(i) by striking ‘‘minus’’ at the end of paragraph

(2) and inserting ‘‘plus’’; and

(ii) by redesignating paragraph (3) as paragraph

(4) and inserting after paragraph (2) the following new

paragraph:

‘‘(3) the taxes imposed by chapter 2A, minus’’.

A of chapter 1 of the Internal Revenue Code of 1986

is amended by inserting after the item relating to chapter

2 the following new item:

H. R. 4872—35

‘‘CHAPTER 2A—UNEARNED INCOME MEDICARE CONTRIBUTION’’.

shall apply to taxable years beginning after December

31, 2012.

(A) FICA.—Paragraph (2) of section 3101(b) of the

Internal Revenue Code of 1986, as added by section 9015

of the Patient Protection and Affordable Care Act and

amended by section 10906 of such Act, is amended by

striking ‘‘and’’ at the end of subparagraph (A), by redesignating

subparagraph (B) as subparagraph (C), and by

inserting after subparagraph (A) the following new

subparagraph:

‘‘(B) in the case of a married taxpayer (as defined

amount determined under subparagraph (A), and’’.

(B) SECA.—Section 1401(b)(2) of the Internal Revenue

Code of 1986, as added by section 9015 of the Patient

Protection and Affordable Care Act and amended by section

10906 of such Act, is amended—

(i) in subparagraph (A), by striking ‘‘and’’ at the

end of clause (i), by redesignating clause (ii) as clause

(iii), and by inserting after clause (i) the following

new clause:

‘‘(ii) in the case of a married taxpayer (as defined

dollar amount determined under clause (i), and’’; and

(ii) in subparagraph (B), by striking ‘‘under clauses

(i) and (ii)’’ and inserting ‘‘under clause (i), (ii), or

(iii) (whichever is applicable)’’.

Code of 1986 is amended by redesignating subsection

(m) as subsection (n) and by inserting after subsection (l) the

following new subsection:

section, the tax imposed under section 3101(b)(2) (to the extent

not withheld) shall be treated as a tax imposed under chapter

2.’’.

shall apply with respect to remuneration received, and

taxable years beginning after, December 31, 2012.

and Affordable Care Act is amended by striking ‘‘December 31,

2010’’ and inserting ‘‘December 31, 2012’’.

of the Internal Revenue Code of 1986, as added by section 9005

of the Patient Protection and Affordable Care Act and amended

by section 10902 of such Act, is amended—

(1) in the matter preceding subparagraph (A), by striking

‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’; and

(2) in subparagraph (B), by striking ‘‘2010’’ and inserting

‘‘2012’’.