Tax Reduction and Reform Act of 2007
Latest action · Oct 25, 2007 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.
- IntroducedOct 25, 2007
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Tax Reduction and Reform Act of 2007 - Amends Internal Revenue Code provisions relating to individual income tax rates, the alternative minimum tax, partnerships and corporations and extends certain expiring tax credits, deductions, and other tax incentives.
Increases and modifies: (1) the standard tax deduction for individual taxpayers; and (2) the earned income and child tax credits.
Extends the increased alternative minimum tax exemptions for individual taxpayers through 2007. Repeals such tax after 2007. Imposes limitations on the itemized deductions and exemptions of taxpayers with adjusted gross incomes in excess of $250,000.
Treats partnership income earned for providing investment management services (i.e., carried interest) as ordinary income.
Extends through 2008 various expiring tax provisions primarily affecting individual taxpayers, including: (1) the tax deductions for state and local sales taxes, for qualified tuition and related expenses, for qualified conservation contributions, for certain expenses of elementary and secondary school teachers, and for mortgage insurance premiums; (2) tax-free distributions from individual retirement accounts for charitable purposes; (3) the taxpayer election to include combat pay as earned income for purposes of the earned income tax credit; (4) special rules for qualified mortgage bonds to finance home purchases by veterans; and (5) tax-free distributions from retirement plans for individuals called to active military service.
Extends through 2008 various expiring tax provisions primarily affecting businesses, including: (1) the tax credits for increasing research expenses, for hiring workers on Indian reservations, for investment in new markets, and for railroad track maintenance; (2) accelerated depreciation for qualified leasehold and restaurant improvements, for motorsports entertainment complexes, and for business property on Indian reservations; (3) expensing allowances for environmental remediation costs; (4) tax deductions for contributions of food and book inventories and for computer equipment for educational purposes; and (5) tax incentives for investment in the District of Columbia and American Samoa.
Extends through 2008 authorities for: (1) issuing qualified zone academy bonds; (2) making disclosures of tax information to facilitate student loan repayments, for combating terrorist activities, and for veterans programs purposes; and (3) Internal Revenue Service (IRS) undercover operations.
Reduces the top marginal income tax rate for corporations from 35 to 30.5% and the tax deduction for dividends received by corporations. Repeals various provisions relating to corporate taxation, including the tax deduction for income attributable to domestic production activities, the LIFO and the lower of cost or market accounting methods, interest allocation rules for U.S. corporations with foreign assets, and special rules relating to domestic international sales corporations.
Makes permanent the increased expensing allowance ($125,000) for small business assets. Increases the amortization period for goodwill and other intangibles from 15 to 20 years.
Sets forth rules for the application of the economic substance doctrine to tax transactions. Imposes enhanced penalties for underpayments of tax due to transactions lacking in economic substance.
Cosponsors
Members who signed on, in the order they did.
Actions 2
Everything that happened, newest first.
- Oct 25, 2007Introduced in House
- Oct 25, 2007Referred to the House Committee on Ways and Means.
Related bills 13
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| S 14 | Invest in America Act | Related bill | Apr 17, 2007 |
| S 55 | Individual Alternative Minimum Tax Repeal Act of 2007 | Related bill | Jan 4, 2007 |
| HR 1366 | Individual AMT Repeal Act of 2007 | Related bill | Mar 7, 2007 |
| S 2234 | A bill to amend the Internal Revenue Code of 1986 to extend the deduction for qualified tuition and related expenses. | Related bill | Nov 1, 2007 |
| S 2293 | Individual Alternative Minimum Tax Repeal Act of 2007 | Related bill | Nov 2, 2007 |
Subjects
Assigned by the Library of Congress. Policy area: Taxation.
- Accounting
- Agriculture and Food
- American Samoa
- Armed Forces and National Security
- Arts, Culture, Religion
- Bonds
- Books
- Charitable contributions
- College costs
- Commerce
- Computers
- Corporation taxes
- Crime and Law Enforcement
- Depreciation and amortization
- District of Columbia
- Dividends
- Earned income tax credit
- Education
- Educational technology
- Elementary and secondary education
- Environmental Protection
- Families
- Finance and Financial Sector
- Government Operations and Politics
- Hazardous wastes
- Higher education
- Home ownership
- Housing and Community Development
- Housing finance
- Income tax
- Indian lands
- Individual retirement accounts
- Insurance premiums
- Interest
- Investment advisers
- Investment tax credit
- Labor and Employment
- Leases
- Liability for environmental damages
- Local taxation
- Maintenance and repair
- Military pay
- Military personnel
- Minimum tax
- Minorities
- Minority employment
- Mortgage guaranty insurance
- Mutual funds
- Native Americans
- Nature conservation
- Partnerships
- Public Lands and Natural Resources
- Railroad engineering
- Research and development tax credit
- Restaurants
- Sales tax
- School buildings
- Science, Technology, Communications
- Small business
- Social Welfare
- Sports and Recreation
- Sports facilities
- State taxation
- Student loan funds
- Tax credits
- Tax deductions
- Tax evasion
- Tax exclusion
- Tax exemption
- Tax incentives
- Tax penalties
- Tax rates
- Tax-deferred compensation plans
- Taxation
- Taxation of foreign income
- Teachers
- Teaching materials
- Terrorism
- Textbooks
- Undercover operations
- Veterans' benefits
Text 1
Each version as it was printed, newest first.
- Oct 25, 2007Introduced in House
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.
