I 

110TH CONGRESS 

1ST SESSION H. R. 2734 

To make the Economic Growth and Tax Relief Reconciliation Act of 2001 

and certain other tax benefits permanent law. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 14, 2007 

Mr. WALBERG (for himself, Mr. ADERHOLT, Mr. AKIN, Mrs. BACHMANN, Mr. 

BARRETT of South Carolina, Mr. BARTLETT of Maryland, Mr. BILBRAY, 

Mr. BILIRAKIS, Mr. BISHOP of Utah, Mrs. BLACKBURN, Mr. BLUNT, Mr. 

BOOZMAN, Mr. BRADY of Texas, Mr. BUCHANAN, Mr. BURTON of Indiana, Mr. CAMP of Michigan, Mr. CAMPBELL of California, Mr. CANTOR, 

Mr. CARTER, Mr. CHABOT, Mr. COLE of Oklahoma, Mr. CONAWAY, Mrs. 

CUBIN, Mr. CULBERSON, Mr. DAVID DAVIS of Tennessee, Mr. DAVIS of 

Kentucky, Mr. MARIO DIAZ-BALART of Florida, Mrs. DRAKE, Mr. DUNCAN, Ms. FALLIN, Mr. FEENEY, Mr. FLAKE, Mr. FORBES, Mr. 

FORTUN ̃O, Mr. FRANKS of Arizona, Ms. FOXX, Mr. GALLEGLY, Mr. GARRETT of New Jersey, Mr. GINGREY, Mr. GOHMERT, Mr. GOODLATTE, Mr. 

HELLER of Nevada, Mr. HENSARLING, Mr. HOEKSTRA, Mr. JONES of 

North Carolina, Mr. JORDAN of Ohio, Mr. KING of Iowa, Mr. KINGSTON, 

Mr. KLINE of Minnesota, Mr. KNOLLENBERG, Mr. LAMBORN, Mr. LEWIS

of California, Mr. LINDER, Mr. MACK, Mr. MANZULLO, Mr. MCCARTHY

of California, Mr. MCCAUL of Texas, Mr. MCHENRY, Mr. GARY G. MILLER of California, Mrs. MYRICK, Mr. NEUGEBAUER, Mr. PAUL, Mr. 

PENCE, Mr. PEARCE, Mr. PITTS, Mr. POE, Mr. PRICE of Georgia, Mr. 

RADANOVICH, Mr. ROGERS of Michigan, Mr. ROSKAM, Mr. RYAN of Wisconsin, Mr. SALI, Mr. SENSENBRENNER, Mr. SESSIONS, Mr. SHADEGG, 

Mr. SIMPSON, Mr. SMITH of Nebraska, Mr. SOUDER, Mr. WAMP, Mr. 

WELDON of Florida, Mr. WILSON of South Carolina, and Mr. LINCOLN

DIAZ-BALART of Florida) introduced the following bill; which was referred to the Committee on Ways and Means 


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•HR 2734 IH

A BILL 

To make the Economic Growth and Tax Relief Reconciliation 

Act of 2001 and certain other tax benefits permanent law. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Tax Increase Preven5 tion Act of 2007’’. 

6 SEC. 2. TAX RELIEF MADE PERMANENT. 

7 (a) ECONOMIC GROWTH AND TAX RELIEF REC8 ONCILIATION ACT OF 2001.—Title IX of the Economic 

9 Growth and Tax Relief Reconciliation Act of 2001 is here10 by repealed. 

11 (b) INCOME TAX RATES ON DIVIDENDS AND NET

12 CAPITAL GAIN.—Section 303 of the Jobs and Growth Tax 

13 Relief Reconciliation Act of 2003 is hereby repealed. 

14 (c) DEDUCTION FOR STATE AND LOCAL SALES

15 TAXES.—Paragraph (5) of section 164(b) of the Internal 

16 Revenue Code of 1986 is amended by striking subpara17 graph (I). 

18 (d) DEDUCTION FOR TUITION AND RELATED EX19 PENSES.—Section 222 of such Code is amended by strik20 ing subsection (e). 

21 (e) INCREASED EXPENSING FOR SMALL BUSI22 NESS.— 


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•HR 2734 IH

1 (1) DOLLAR LIMITATION.—Paragraph (1) of 

2 section 179(b) of such Code (relating to dollar limi3 tation) is amended by striking ‘‘$25,000 ($125,000 

4 in the case of taxable years beginning after 2006 

5 and before 2011)’’ and inserting ‘‘$125,000’’. 

6 (2) INCREASE IN QUALIFYING INVESTMENT AT

7 WHICH PHASEOUT BEGINS.—Paragraph (2) of sec8 tion 179(b) of such Code (relating to reduction in 

9 limitation) is amended by striking ‘‘$200,000 

10 ($500,000 in the case of taxable years beginning 

11 after 2006 and before 2011)’’ and inserting 

12 ‘‘$500,000’’. 

13 (3) INFLATION ADJUSTMENTS.—Section 

14 179(b)(5)(A) of such Code (relating to inflation ad15 justments) is amended by striking ‘‘and before 

16 2011’’. 

17 (4) REVOCATION OF ELECTION.—Section 

18 179(c)(2) of such Code (relating to election irrev19 ocable) is amended by striking ‘‘and before 2011’’. 

20 (5) COMPUTER SOFTWARE.—Clause (ii) of sec21 tion 179(d)(1)(A) of such Code is amended by strik22 ing ‘‘and before 2011’’. 

23 (f) RESEARCH CREDIT.— 


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•HR 2734 IH

1 (1) IN GENERAL.—Section 41 of such Code is 

2 amended by striking subsection (h) (relating to ter3 mination). 

4 (2) CONFORMING AMENDMENT.—Paragraph (1) 

5 of section 45C(b) of such Code is amended by strik6 ing subparagraph (D). 

7 (3) EFFECTIVE DATE.—The amendments made 

8 by this subsection shall apply to amounts paid or in9 curred after December 31, 2007. 

10 (g) EFFECTIVE DATE.—Except as provided in sub11 section (f), the amendments made by this section shall 

12 take effect on the date of the enactment of this Act. 

13 SEC. 3. SENSE OF THE CONGRESS REGARDING SIMPLI14 FYING THE FEDERAL INCOME TAX SYSTEM. 

15 (a) FINDINGS.—The Congress finds that— 

16 (1) the average time burden for all taxpayers 

17 filing a Form 1040 Federal income tax return is 30 

18 hours, 

19 (2) more than 6 in 10 Americans now hire 

20 someone to help prepare their tax returns every 

21 year, and 

22 (3) the hundreds of billions of dollars spent 

23 each year complying with the Federal tax system 

24 could be used more efficiently by families and busiVerDate Aug 31 2005 07:39 Jun 16, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2734.IH H2734

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•HR 2734 IH

1 nesses to grow the Nation’s economy and create 

2 jobs. 

3 (b) SENSE OF CONGRESS.—It is the sense of the 

4 House of Representatives that the Committee on Ways 

5 and Means should report legislation on or before Decem6 ber 31, 2008, to simplify the Federal income tax system, 

7 ensuring that the system is equitable, economically effi8 cient, simple, transparent and administrable, without rais9 ing tax rates. 

Æ 


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