I 
110TH CONGRESS 
2D SESSION 
H. R. 6614 
To amend the Internal Revenue Code of 1986 to repeal the limitation on 
the amount of foreign earned income excludible from gross income by 
citizens or residents of the United States living abroad, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 24, 2008 
Mr. GARRETT of New Jersey (for himself, Mr. PRICE of Georgia, Mr. SUL-
LIVAN, Mrs. BLACKBURN, Mr. KING of Iowa, Mr. GINGREY, Mr. ISSA, 
Ms. FALLIN, Mr. CAMPBELL of California, Mr. KLINE of Minnesota, and 
Mr. WESTMORELAND) introduced the following bill; which was referred 
to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to repeal 
the limitation on the amount of foreign earned income 
excludible from gross income by citizens or residents 
of the United States living abroad, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American Tax Fair-
ness Act of 2008’’. 
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SEC. 2. REPEAL OF LIMITATION ON THE EXCLUSION OF 
FOREIGN EARNED INCOME BY CITIZENS AND 
RESIDENTS OF THE UNITED STATES LIVING 
ABROAD. 
(a) IN GENERAL.—Subsection (a) of section 911 of 
the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(a) EXCLUSION FROM GROSS INCOME.—At the elec-
tion of a qualified individual, there shall be excluded from 
the gross income of such individual, and exempt from tax 
under this subtitle, for any taxable year the foreign earned 
income of such individual.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (b) of section 911 of such Code 
is amended to read as follows: 
‘‘(b) FOREIGN EARNED INCOME.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘foreign earned 
income’ with respect to any individual means the 
amount received by such individual from sources 
within a foreign country or countries which con-
stitute earned income attributable to services per-
formed by such individual during the period de-
scribed in subparagraph (A) or (B) of subsection 
(c)(1), whichever is applicable. 
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‘‘(2) CERTAIN
AMOUNTS
NOT
INCLUDED
IN 
FOREIGN EARNED INCOME.—The foreign earned in-
come for an individual shall not include amounts— 
‘‘(A) received as a pension or annuity, 
‘‘(B) paid by the United States or an 
agency thereof to an employee of the United 
States or an agency thereof, 
‘‘(C) included in gross income by reason of 
section 402(b) (relating to taxability of bene-
ficiary of nonexempt trust) or section 403(c) 
(relating to taxability of beneficiary under a 
nonqualified annuity), or 
‘‘(D) received after the close of the taxable 
year following the taxable year in which the 
services to which the amounts are attributable 
are performed.’’. 
(2) Section 911 of such Code is amended by 
striking subsection (c) and redesignating subsections 
(d) through (g) as subsections (c) through (f), re-
spectively. 
(3) Subsection (c) of section 911 of such Code 
(as redesignated under paragraph (2)) is amended— 
(A) by striking ‘‘, and in applying sub-
sections 
(b)(2)(A), 
(c)(1)(B)(ii), 
and 
(c)(2)(A)(ii) with respect to such individual, 
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only the days within such period shall be taken 
into account’’ in the flush language at the end 
of paragraph (4), 
(B) by striking paragraph (7), and 
(C) by redesignating paragraphs (8) and 
(9) as paragraphs (7) and (8), respectively. 
(4) Subparagraph (A) of section 911(c)(7) (as 
redesignated under paragraphs (2) and (3)) is 
amended by striking clause (ii) and inserting ‘‘and’’ 
at the end of clause (i). 
(5) Subsection (e) of section 911 of such Code 
(as redesignated under paragraph (2)) is amended 
by striking ‘‘subsection (d)(6)’’ in the flush language 
at the end and inserting ‘‘subsection (c)(6)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 3. TREASURY REPORT ON TAXATION OF FOREIGN IN-
COME. 
Not later than 1 year after the date of the enactment 
of this Act, the Secretary of the Treasury shall submit 
to the Congress a report on the United States taxation 
of foreign income, including— 
(1) a detailed description of the United States 
taxation of the foreign income (including earned in-
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come, dividends, capital gains, and interest) of 
United States persons and of foreign persons, 
(2) the recommendations of the Secretary re-
garding whether and how such taxation could be re-
structured and whether any particular forms of such 
taxation should be terminated, and 
(3) the recommendations of the Secretary on 
creative, market-oriented methods to encourage in-
creased repatriation of income invested outside the 
United States (including any extension of the tem-
porary dividends received deduction under section 
965 of the Internal Revenue Code of 1986). 
Æ 
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