Now that Republicans have taken office, it is time to consider some new tax bills. Obama will, no doubt, veto them, but let’s have a look.
H.R.99, the Fair and Simple Tax Act of 2009 would, according to the January 6, 2009 summary:
Fair and Simple Tax Act of 2009 – Amends the Internal Revenue Code to: (1) establish an alternative income tax rate system with three tax brackets (10, 15, and 30%); (2) repeal the estate and gift tax; (3) adjust the increased alternative minimum tax (AMT) exemption amounts for inflation after 2008 and make such exemptions permanent; (4) reduce the maximum corporate income tax rate to 25%; (5) reduce the maximum tax rate on capital gains to 10%; (6) allow an inflation adjustment to the basis of capital assets for purposes of determining gain or loss; (7) establish new tax-exempt accounts for retirement savings, lifetime savings, and lifetime skills accounts; (8) exempt individuals under age 65 who do not have employer health care coverage from the adjusted gross income threshold for the medical care tax deduction; and (9) make permanent the tax credit for increasing research activities.
Repeals the terminating dates applicable to provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003.
This bill was introduced by 15-term Representative David Dreier of California’s 26th district and now has three co-sponsors.
Representative John Linder has introduced the bolder plan of eliminating the income tax and instituting a sales tax in H.R. 25, the Fair Tax Act of 2009 which has 65 co-sponsors. The January 6th summary of this bill states:
Fair Tax Act of 2009 - Repeals the income tax, employment tax, and estate and gift tax. Redesignates the Internal Revenue Code of 1986 as the Internal Revenue Code of 2009.
Imposes a national sales tax on the use or consumption in the United States of taxable property or services. Sets the sales tax rate at 23% in 2011, with adjustments to the rate in subsequent years. Allows exemptions from the tax for property or services purchased for business, export, or investment purposes, and for state government functions.
Sets forth rules relating to: (1) the collection and remittance of the sales tax; and (2) credits and refunds. Allows a monthly sales tax rebate for families meeting certain size and income requirements.
Grants states the primary authority for the collection of sales tax revenues and the remittance of such revenues to the Treasury. Sets forth administrative provisions relating to: (1) the filing of monthly reports and payments of tax; (2) accounting methods; (3) registration of sellers of goods and services responsible for reporting sales; (4) penalties for noncompliance; and (5) collections, appeals, and taxpayer rights.
Directs the Secretary of the Treasury to allocate sales tax revenues among: (1) the general revenue; (2) the old-age and survivors insurance trust fund; (3) the disability insurance trust fund; (4) the hospital insurance trust fund; and (5) the federal supplementary medical insurance trust fund.
Prohibits the funding of the Internal Revenue Service (IRS) after FY2013. Establishes in the Department of the Treasury: (1) an Excise Tax Bureau to administer excise taxes not administered by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and (2) a Sales Tax Bureau to administer the national sales tax.
Terminates the sales tax imposed by this Act if the Sixteenth Amendment to the U.S. Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this Act.
California Representative Bob Filner might have more success with his H.R. 674. After TEA party-mania swept the last election, the President might actually fear a backlash from senior citizens if he vetoes the Fair Taxes for Seniors Act of 2009. This bill, the summary says:
Fair Taxes for Seniors Act of 2009 – Amends the Internal Revenue Code to provide a one-time increase (from $250,000 to $500,000, or from $500,000 to $1 million for married taxpayers filing joint returns) in the exclusion of gain from the sale of a principal residence by a taxpayer who has attained the age of 50 before such sale. Provides that in the case of a joint return, only one spouse need satisfy the age requirement.
The only one of these proposals that seems to give a break to the unwed is H.R. 25.
Ron Paul of Texas has introduced H.R.1767, the Fair Housing Tax Credit Extension Act of 2009 which, “Amends the Internal Revenue Code to: (1) make the first-time homebuyer tax credit applicable to purchases of a principal residence after December 31, 2007; and (2) make such credit permanent.”
Obama, no doubt, has his veto pen at the ready for any Republican measures. It will be difficult to establish just what legislation he will veto except his hard fought-for take-over of the health care industry. In addition, Democrats still own the Senate.
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Tags: Death and..., Economy, H.R. 1767, H.R. 25, H.R. 674, H.R. 99, Media, News Item, Taxes
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