Simplified USA Tax Act of 2003
Latest action · Jan 8, 2003 Referred to the House Committee on Ways and Means.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedJan 8, 2003
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Establishes tax rates at 15, 25, and 30 percent. Sets forth provisions defining gross income, exclusions from gross income, alimony and child support deductions, personal and dependency deductions, the family living allowance, the homeowner deduction, the education deduction (equal, as a general rule, to the sum of all qualified education expenses), the philanthropic transfer deduction, the kiddie tax (concerning taxable income of children), and tax credits (including allowing a payroll tax credit).
Sets forth provisions concerning a Roth IRA, a deductible IRA, annuities, endowment contracts, and life insurance contracts. Permits contributions to a Roth IRA of up to the amount of an individual's adjusted gross income. Provides, as a general rule, for the exclusion from gross income of Roth IRA distributions. Sets forth provisions concerning basis, business transactions, and nonrecognition transactions.
Establishes rules for exclusion from gross income, rules relating to deductions, and rules for the rental of real estate.
Requires a trust or estate to prepay the Simplified USA Tax for individuals. Sets the tax rate at 30 percent on the taxable income of a trust or estate when the taxable income exceeds $3,800. Sets forth rules concerning trusts and estates, including rules for credits, deductions, trust income, distributions, beneficiaries, charitable remainder trusts, reversionary interests, and funeral trusts.
Renumbers the current chapter 2 (Tax on Self-Employment Income) of the IRC as chapter 3. Establishes a new chapter 2, "Simplified USA Tax for Businesses." States that the tax equals the amount by which the business tax exceeds the payroll tax credit. Defines the "business tax" as the sum of: (1) 8 percent of the portion of the gross profits of the business entity for the taxable year that does not exceed $150,000; and (2) 12 percent of such portion of the gross profits of the business entity for the taxable year that exceeds $150,000. Directs the Secretary to prescribe rules under which the gross profits of business entities under common control are aggregated for purposes of applying the benefit of the lower rate. States that such rules shall be similar to rules applicable under IRC sections 1551 (Disallowance of the benefits of the graduated corporate rates and accumulated credit) and 1561 (Limitations on certain multiple tax benefits in the case of controlled corporations). Defines the "payroll tax credit" as a credit for the social security, railroad retirement, and hospital insurance taxes paid by an employer.
Sets forth subchapters governing: (1) the basic rules for the business tax; (2) capital contributions, mergers, acquisitions, and distributions; (3) accounting method rules; (4) land and rental property; (5) insurance and financial products; (6) financial intermediation and financial institutions; (7) tax-exempt organizations; (8) cooperatives; (9) sourcing rules; (10) business conducted in a possession; (11) the payroll tax credit; (12) the import tax (as a general rule, eleven percent of the customs value of property or services); and (12) transition, administration, and consolidated returns (permitted, if it would have been permitted under the IRC provisions governing consolidated returns and such provisions were applied by treating each business entity as a corporation and its owners or partners as shareholders).
Provides, in general, that subchapter D (Deferred Compensation) of chapter 1 of the IRC is saved.
Repeals Subtitle B (Estate and Gift Taxes) of the IRC.
Cosponsors
Members who signed on, in the order they did.
Actions 2
Everything that happened, newest first.
- Jan 8, 2003Introduced in House
- Jan 8, 2003Referred to the House Committee on Ways and Means.
Subjects
Assigned by the Library of Congress. Policy area: Taxation.
- Accounting
- Administrative procedure
- Agriculture and Food
- Aliens
- Alimony
- Americans in foreign countries
- Annuities
- Armed Forces and National Security
- Athletics
- Bank accounts
- Business travel
- Capital gains tax
- Cemeteries and funerals
- Charitable contributions
- Child support
- College costs
- College sports
- Colleges
- Commemorations
- Commerce
- Conservation of natural resources
- Contracts
- Cooperative societies
- Corporate governance
- Corporate mergers
- Corporation taxes
- Cost of living adjustments
- Crime and Law Enforcement
- Damages
- Debt
- Department of the Treasury
- Depreciation and amortization
- Disability insurance
- Disabled
- Dividends
- Divorce
- EBB Terrorism
- Economics and Public Finance
- Education
- Education savings accounts
- Employee ownership
- Employee training
- Environmental Protection
- Estate tax
- Expatriation
- Families
- Finance and Financial Sector
- Financial services
- Foreign corporations
- Foreign Trade and International Finance
- Foster home care
- Foundations
- Fringe benefits
- Gift tax
- Gifts
- Government corporations
- Government Operations and Politics
- Habitat conservation
- Health
- Health insurance
- Higher education
- Historic sites
- History
- Home ownership
- Housing and Community Development
- Housing finance
- Immigration
- Imports
- Income tax
- Indexing (Economic policy)
- Individual retirement accounts
- Insurance companies
- Insurance premiums
- Interest
- Intergovernmental tax relations
- International Affairs
- Labor and Employment
- Land use
- Law
- Leases
- Life insurance
- Loan defaults
- Lobbying
- Losses
- Marketing
- Medical economics
- Medical research
- Medical savings accounts
- Medicare
- Military pay
- Military pensions
- Mortgages
- Officer personnel
- Old age, survivors and disability insurance
- Open space lands
- Outdoor recreation
- Partnerships
- Profit
- Public Lands and Natural Resources
- Railroad retirement plans
- Real estate business
- Real estate development
- Recreation areas
- Rent
- School personnel
- Science, Technology, Communications
- Social security taxes
- Social Welfare
- Sports and Recreation
- Sports facilities
- Stocks
- Tax administration
- Tax credits
- Tax deductions
- Tax deferral
- Tax evasion
- Tax exclusion
- Tax exemption
- Tax penalties
- Tax rates
- Tax refunds
- Tax returns
- Tax simplification
- Tax treaties
- Tax-deferred compensation plans
- Tax-exempt organizations
- Tax-exempt securities
- Taxation
- Taxation of foreign income
- Teachers
- Telecommunication industry
- Telephone
- Territories (U.S.)
- Terrorism
- Torts
- Transportation and Public Works
- Travel costs
- Trusts and trustees
- Unemployment
- Unrelated business income tax
- Vocational and technical education
- Withholding tax
- Workers' compensation
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov.