[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9873 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 9873
To amend the Fair Labor Standards Act of 1938 and the Internal Revenue
Code of 1986 to make certain modifications in relation to the minimum
wage.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 27, 2024
Ms. Lee of Pennsylvania (for herself, Ms. Lee of California, Mr.
Jackson of Illinois, Ms. Tlaib, Ms. Bush, Ms. Schakowsky, Ms. McCollum,
Mrs. Ramirez, and Mr. Huffman) introduced the following bill; which was
referred to the Committee on Education and the Workforce, and in
addition to the Committees on Ways and Means, and Oversight and
Accountability, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Fair Labor Standards Act of 1938 and the Internal Revenue
Code of 1986 to make certain modifications in relation to the minimum
wage.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American Stability
Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--MINIMUM WAGE
Sec. 101. Minimum wage increases.
Sec. 102. Tipped employees.
Sec. 103. Scheduled repeal of separate minimum wage for newly hired
employees who are less than 20 years old.
Sec. 104. Publication of notice.
Sec. 105. Promoting economic self-sufficiency for individuals with
disabilities.
TITLE II--INCOME TAX MODIFICATIONS
Sec. 201. Modification of income tax brackets based on annualized
stability wage.
Sec. 202. Surcharge on high income individuals, estates, and trusts.
Sec. 203. Alternative maximum tax for low-income individuals.
TITLE III--EARNED INCOME DISALLOWANCE
Sec. 301. Earned income disallowance.
TITLE IV--EFFECTIVE DATE
Sec. 401. Effective date.
TITLE I--MINIMUM WAGE
SEC. 101. MINIMUM WAGE INCREASES.
(a) In General.--Section 6(a)(1) of the Fair Labor Standards Act of
1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:
``(1) except as otherwise provided in this section, not
less than--
``(A) $15.00 an hour for the first calendar year
beginning after the date of enactment of the American
Stability Act;
``(B) for each calendar year during the interval
period (as defined in subsection (g)), a minimum wage
equal to the amount determined under this paragraph for
the preceding year, increased by the lesser of--
``(i) 10 percent; or
``(ii) the amount necessary for the minimum
wage to equal the stability wage for such
calendar year; and
``(C) for each calendar year that begins after the
interval period, the stability wage for such calendar
year.''.
(b) Stability Wage.--Section 6 of such Act (29 U.S.C. 206) is
further amended by adding at the end the following:
``(h) Stability Wage.--
``(1) In general.--
``(A) Determination.--The stability wage determined
under this paragraph for a calendar year shall be an
amount equal to the greater of--
``(i) the average hourly earnings wage
determined under paragraph (2) for that
calendar year;
``(ii) the cost-of-living wage determined
under paragraph (3) for that calendar year; or
``(iii) the stability wage in effect for
the preceding year.
``(B) Rounding.--If the amount determined under
subparagraph (A) is not a multiple of 5 cents, such
amount shall be rounded to the next higher multiple of
5 cents.
``(2) Average hourly earnings wage.--The average hourly
earnings wage for any calendar year shall be an amount equal to
$20.00, multiplied by the ratio of--
``(A) the average hourly earnings for the year
preceding such calendar year, to
``(B) the average hourly earnings for the year
preceding the calendar year of the date of enactment of
the American Stability Act.
``(3) Cost-of-living wage.--The cost-of-living wage for any
calendar year shall be an amount equal to $20.00, multiplied by
the ratio of--
``(A) the CPI-U for the year preceding such
calendar year, to
``(B) the CPI-U for the year preceding the calendar
year of the date of enactment of the American Stability
Act.
``(4) Definitions.--For the purposes of this paragraph and
subsection (a)(1):
``(A) CPI-U.--The term `CPI-U' means, when used
with respect to a calendar year, the Consumer Price
Index for all urban consumers, as published by the
Bureau of Labor Statistics, for September of such year.
``(B) Average hourly earnings.--The term `average
hourly earnings' means, when used with respect to a
calendar year, the total private average hourly
earnings from the data on average hourly and weekly
earnings of production and nonsupervisory employees on
private nonfarm payrolls by industry sector, seasonally
adjusted, as published by the Bureau of Labor
Statistics, for September of such year.
``(C) Interval period.--The term `interval period'
means the period--
``(i) beginning on the first day of the 1st
calendar year beginning after the date of
enactment of the American Stability Act; and
``(ii) ending at the close of the last day
of the first calendar year for which the
minimum wage under subsection (a)(1) equals the
stability wage determined under paragraph (1)
of this subsection for such calendar year.''.
SEC. 102. TIPPED EMPLOYEES.
(a) Base Minimum Wage for Tipped Employees and Tips Retained by
Employees.--
(1) In general.--Section 3(m)(2)(A) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)) shall be amended
to read as follows:
``(A) The wage required to be paid to a tipped employee
shall be the wage set forth in section 6(a)(1). Any employee
shall have the right to retain any tips received by such
employee, except that this subsection shall not be construed to
prohibit the pooling of tips among employees who customarily
and regularly receive tips. An employer shall inform each
employee of the right and exception provided under the
preceding sentence.''.
(2) Effective date.--The amendment made by subsection (a)
shall take effect on January 1 of the first calendar year that
begins after the date of enactment of this Act.
(b) Penalties.--Section 16 of the Fair Labor Standards Act of 1938
(29 U.S.C. 216) is amended--
(1) in the third sentence of subsection (b), by inserting
``or used'' after ``kept''; and
(2) in the second sentence of subsection (e)(2), by
inserting ``or used'' after ``kept''.
SEC. 103. SCHEDULED REPEAL OF SEPARATE MINIMUM WAGE FOR NEWLY HIRED
EMPLOYEES WHO ARE LESS THAN 20 YEARS OLD.
(a) In General.--Section 6(g) of the Fair Labor Standards Act of
1938 (29 U.S.C. 206(g)), as amended by subsection (a), shall be
repealed.
(b) Effective Date.--The repeal made by subsection (a) shall take
effect on January 1 of the first calendar year that begins after the
date of enactment of this Act.
SEC. 104. PUBLICATION OF NOTICE; TECHNICAL ASSISTANCE.
Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206),
as amended by section 2(b), is further amended by adding at the end the
following:
``(i) Publication of Wage Rates.--Not later than 60 days prior to
the effective date of any increase in the required wage determined
under subsection (a)(1), the Secretary shall publish in the Federal
Register and on the website of the Department of Labor a notice
announcing each increase in such required wage.
``(j) Transition Assistance.--Upon request, the Secretary shall
provide--
``(1) technical assistance and information to employers for
the purposes of--
``(A) assisting such employers to comply with
subsection (a), as amended by the American Stability
Act; and
``(B) ensuring continuing employment opportunities
for individuals with disabilities who received a
special minimum wage rate under this section 14(c) (as
in effect on the day before the date of enactment of
the American Stability Act); and
``(2) information to individuals who were employed at a
special minimum wage rate under section 14(c) (as in effect on
the day before the date of enactment of the American Stability
Act), which may include referrals to Federal or State entities
with expertise in competitive integrated employment.''.
SEC. 105. PROMOTING ECONOMIC SELF-SUFFICIENCY FOR INDIVIDUALS WITH
DISABILITIES.
(a) Transition to Fair Wages for Individuals With Disabilities.--
(1) In general.--Subparagraph (A) of section 14(c)(1) of
the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)(1))
shall be amended to read as follows:
``(A) at a rate that equals or exceeds, for each year, the
wage set forth in section 6(a)(1).''.
(2) Effective date.--The amendment made by paragraph (A)
shall take effect on January 1 of the first calendar year that
begins after the date of enactment of this Act.
(b) Prohibition on New Special Certificates.--
(1) In general.--Section 14(c) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 214(c)) is amended by adding at the end
the following:
``(6) Prohibition on New Special Certificates.--Notwithstanding
paragraph (1), the Secretary shall not issue a special certificate
under this subsection to an employer that was not issued a special
certificate under this subsection before the date of enactment of the
American Stability Act.''.
(2) Sunset.--Section 14(c) of the Fair Labor Standards Act
of 1938 (29 U.S.C. 214(c)), as amended by paragraph (2), is
further amended by adding at the end the following:
``(7) Sunset.--On January 1 of the first calendar year that begins
after the date of enactment of the American Stability Act, the
authority to issue special certificates under paragraph (1) shall
expire, and no special certificates issued under paragraph (1) shall
have any legal effect .''.
(3) Effective date.--The amendments made by this paragraph
shall take effect on the date of enactment of this Act.
TITLE I--INCOME TAX MODIFICATIONS
SEC. 1. MODIFICATION OF INCOME TAX BRACKETS BASED ON ANNUALIZED
STABILITY WAGE.
(a) In General.--Section 1 of the Internal Revenue Code of 1986 is
amended by striking subsections (a), (b), (c), (d), and (e) and
inserting the following new subsections:
``(a) In General.--There is hereby imposed on the taxable income of
every individual, every estate, and every trust a tax determined under
this section.
``(b) Amount of Tax.--The tax determined under this section shall
be equal to--
``(1) in the case of any taxpayer whose taxable income does
not exceed the maximum bracket amount for the lowest tax
bracket for the taxpayer's filing status, the product of the
percentage which constitutes such lowest tax bracket multiplied
by such taxable income, and
``(2) in the case of any taxpayer whose taxable income
exceeds the maximum bracket amount for such lowest tax bracket,
the sum of--
``(A) the maximum tax amount for each tax bracket
for the taxpayer's filing status with respect to which
the taxpayer's taxable income exceeds the maximum
bracket amount for such tax bracket, plus
``(B) the product of--
``(i) the percentage which constitutes the
tax bracket for the taxpayer's filing status
which is next above the highest bracket amount
for which an amount is included under
subparagraph (A), multiplied by
``(ii) so much of the taxable income of the
taxpayer as exceeds the maximum bracket amount
of such highest tax bracket.
``(c) Determination of Maximum Bracket Amounts.--
``(1) Married individuals filing joint returns and
surviving spouses.--In the case of every married individual (as
defined in section 7703) who makes a single return jointly with
the individual's spouse under section 6013, and every surviving
spouse--
``(A) the maximum bracket amount for the 10 percent
bracket is the product of 0.56 multiplied by the
annualized stability wage for the taxable year,
``(B) the maximum bracket amount for the 12 percent
bracket is the product of 2.28 multiplied by the
annualized stability wage for the taxable year,
``(C) the maximum bracket amount for the 22 percent
bracket is the product of 4.8 multiplied by the
annualized stability wage for the taxable year,
``(D) the maximum bracket amount for the 24 percent
bracket is the product of 9.2 multiplied by the
annualized stability wage for the taxable year,
``(E) the maximum bracket amount for the 32 percent
bracket is the product of 11.6 multiplied by the
annualized stability wage for the taxable year,
``(F) the maximum bracket amount for the 35 percent
bracket is the product of 17.6 multiplied by the
annualized stability wage for the taxable year, and
``(G) the maximum bracket amount for the 37 percent
bracket is infinite.
``(2) Heads of households.--In the case of every head of
household--
``(A) the maximum bracket amount for the 10 percent
bracket is the product of 0.42 multiplied by the
annualized stability wage for the taxable year,
``(B) the maximum bracket amount for the 12 percent
bracket is the product of 1.52 multiplied by the
annualized stability wage for the taxable year,
``(C) the maximum bracket amount for the 22 percent
bracket is the product of 2.4 multiplied by the
annualized stability wage for the taxable year,
``(D) the maximum bracket amount for the 24 percent
bracket is the product of 4.6 multiplied by the
annualized stability wage for the taxable year,
``(E) the maximum bracket amount for the 32 percent
bracket is the product of 5.8 multiplied by the
annualized stability wage for the taxable year,
``(F) the maximum bracket amount for the 35 percent
bracket is the product of 14.6 multiplied by the
annualized stability wage for the taxable year, and
``(G) the maximum bracket amount for the 37 percent
bracket is infinite.
``(3) Unmarried individuals (other than surviving spouses
and heads of households).--In the case of every individual
(other than a surviving spouse or a head of household) who is
not a married individual (as defined in section 7703)--
``(A) the maximum bracket amount for the 10 percent
bracket is the product of 0.28 multiplied by the
annualized stability wage for the taxable year,
``(B) the maximum bracket amount for the 12 percent
bracket is the product of 1.14 multiplied by the
annualized stability wage for the taxable year,
``(C) the maximum bracket amount for the 22 percent
bracket is the product of 2.4 multiplied by the
annualized stability wage for the taxable year,
``(D) the maximum bracket amount for the 24 percent
bracket is the product of 4.6 multiplied by the
annualized stability wage for the taxable year,
``(E) the maximum bracket amount for the 32 percent
bracket is the product of 5.8 multiplied by the
annualized stability wage for the taxable year,
``(F) the maximum bracket amount for the 35 percent
bracket is the product of 14.6 multiplied by the
annualized stability wage for the taxable year, and
``(G) the maximum bracket amount for the 37 percent
bracket is infinite.
``(4) Married individuals filing separate returns.--In the
case of every married individual (as defined in section 7703)
who does not make a single return jointly with the individual's
spouse under section 6013--
``(A) the maximum bracket amount for the 10 percent
bracket is the product of 0.28 multiplied by the
annualized stability wage for the taxable year,
``(B) the maximum bracket amount for the 12 percent
bracket is the product of 1.14 multiplied by the
annualized stability wage for the taxable year,
``(C) the maximum bracket amount for the 22 percent
bracket is the product of 2.4 multiplied by the
annualized stability wage for the taxable year,
``(D) the maximum bracket amoun