Crane Tithe Tax Act of 1993

Summary: Crane Tithe Tax Act of 1993 - Amends the Internal Revenue Code to repeal the following taxes:  (1) the corporate income tax; (2) the alternative minimum tax as it applies to corporations; (3) the tax on the unrelated business income of tax-exempt organizations; (4) the tax on the accumulated earnings of certain corporations; (5) the tax applied to personal holding companies; (6) the alternative tax for certain mutual savings banks; (7) income taxes imposed on insurance companies, regulated investment companies, and real estate investment trusts; and (8) the tax on the income of foreign corporations connected with U.S. business. 
Revises the individual income tax to impose a ten percent tax on an individual's earned income that exceeds $10,000 (adjusted annually based on the Consumer Price Index).  Includes as earned income:  (1) wages, salaries, and other employee compensation; (2) net earnings from self-employment; and (3) dividends from a personal service corporation or other direct or indirect compensation for services.  Exempts tips and amounts received as a pension or annuity. 
Declares tax amnesty with respect to income tax liability and associated penalties and interest for pre-1992 taxable years. 
Repeals all tax exclusions, tax deductions, and tax credits currently used to determine individual income tax liability. 
Repeals the estate tax, the gift tax, and the tax on certain generation-skipping transfers.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Crane Tithe Tax Act of 1993''.

SEC. 2. REPEAL OF TAXATION OF CORPORATIONS.

    The following provisions of the Internal Revenue Code of 1986 are 
hereby repealed:
            (1) section 11 (relating to corporate income tax),
            (2) section 55 (relating to alternative minimum tax) 
        insofar as it applies to corporations,
            (3) section 511 (relating to unrelated business income 
        tax),
            (4) section 531 (relating to accumulated earnings tax),
            (5) section 541 (relating to personal holding company tax),
            (6) section 594 (relating to alternative tax for certain 
        mutual savings banks),
            (7) section 801 (relating to tax imposed on life insurance 
        companies),
            (8) section 821 (relating to tax imposed on certain mutual 
        insurance companies),
            (9) section 831 (relating to tax on certain other insurance 
        companies),
            (10) section 852 (relating to tax on regulated investment 
        companies),
            (11) section 857 (relating to tax on real estate investment 
        trusts), and
            (12) section 882 (relating to tax on income of foreign 
        corporations connected with United States business).

SEC. 3. 10 PERCENT INCOME TAX RATE FOR INDIVIDUALS.

    Section 1 of the Internal Revenue Code of 1986 (relating to tax 
imposed on individuals) is amended to read as follows:

``SECTION 1. TAX IMPOSED.

    ``(a) In General.--There is hereby imposed on the income of every 
individual a tax equal to 10 percent of the excess of the earned income 
of such individual for the taxable year over the exemption amount for 
such year.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Exemption amount.--
                    ``(A) In general.--The term `exemption amount' 
                means, for any taxable year, $10,000 increased (for 
                taxable years beginning after December 31, 1993) by an 
                amount equal to $10,000 multiplied by the cost-of-
                living adjustment for the calendar year in which the 
                taxable year begins.
                    ``(B) Cost-of-living adjustment.--For purposes of 
                this paragraph--
                            ``(i) In general.--The cost-of-living 
                        adjustment for any calendar year is the 
                        percentage (if any) by which--
                                    ``(I) the CPI for October of the 
                                preceding calendar year, exceeds
                                    ``(II) the CPI for October of 1992.
                            ``(ii) CPI.--The term `CPI' means the last 
                        Consumer Price Index for all-urban consumers 
                        published by the Department of Labor.
                    ``(C) Rounding.--If the increase determined under 
                this paragraph is not a multiple of $10, such increase 
                shall be rounded to the nearest multiple of $10 (or if 
                such increase is a multiple of $5, such increase shall 
                be increased to the next highest multiple of $10).
            ``(2) Earned income.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `earned income' means--
                            ``(i) wages, salaries, and other employee 
                        compensation,
                            ``(ii) the amount of the taxpayer's net 
                        earnings from self-employment for the taxable 
                        year, and
                            ``(iii) the amount of dividends which are 
                        from a personal service corporation or which 
                        are otherwise directly or indirectly 
                        compensation for services.
                    ``(B) Exceptions.--The term `earned income' does 
                not include--
                            ``(i) any amount received as a pension or 
                        annuity, or
                            ``(ii) any tip unless the amount of the tip 
                        is not within the discretion of the service-
                        recipient.
                    ``(C) Fringe benefits valued at employer cost.--The 
                amount of any fringe benefit which is included as 
                earned income shall be the cost to the employer of such 
                benefit.''

SEC. 4. AMNESTY FOR ALL PRIOR TAX LIABILITY.

    (a) In General.--No person shall be liable for any tax imposed by 
chapter 1 of the Internal Revenue Code of 1986 (or for penalties and 
interest with respect to such tax) for any taxable year ending on or 
before January 1992.
    (b) Exceptions.--
            (1) Amounts paid.--Subsection (a) shall not apply to 
        amounts paid before the date of the enactment of this Act.
            (2) Tax attributable to illegal activities.--Subsection (a) 
        shall not apply to any tax (including penalties and interest 
        with respect to such tax) attributable to any business activity 
        which is in violation of any Federal, State, or local law.

SEC. 5. REPEAL OF SPECIAL DEDUCTIONS, CREDITS, AND EXCLUSIONS FROM 
              INCOME FOR INDIVIDUALS.

    Chapter 1 of the Internal Revenue Code of 1986 is amended by 
striking out all specific exclusions from gross income, all deductions, 
and all credits against income tax to the extent related to the 
computation of individual income tax liability.

SEC. 6. REPEAL OF ESTATE AND GIFT TAXES.

    Subtitle B of the Internal Revenue Code of 1986 (relating to 
estate, gift, and generation-skipping taxes) is hereby repealed.

SEC. 7. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this Act shall apply to taxable years beginning 
after the date of the enactment of this Act.
    (b) Repeal of Estate and Gift Taxes.--The repeal made by section 6 
shall apply to estates of decedents dying, and transfers made, after 
the date of the enactment of this Act.
    (c) Technical and Conforming Changes.--The Secretary of the 
Treasury or his delegate shall, as soon as practicable but in any event 
not later than 90 days after the date of the enactment of this Act, 
submit to the Committee on Ways and Means of the House of 
Representatives a draft of any technical and conforming changes in the 
Internal Revenue Code of 1986 which are necessary to reflect throughout 
such Code the changes in the substantive provisions of law made by this 
Act.