Title: To provide the equivalent of a 6-month Federal income tax holiday for certain individuals.
Policy area: Taxation

Summary:
This bill reduces the income tax of individual taxpayers for taxable years beginning after December 31, 2021, by the six-month federal income tax holiday amount. That amount is 50% of the income tax otherwise imposed and is phased out based upon taxpayer adjusted gross income.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7538 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 7538

 To provide the equivalent of a 6-month Federal income tax holiday for 
                          certain individuals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 18, 2022

Mr. Moore of Alabama introduced the following bill; which was referred 
                   to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To provide the equivalent of a 6-month Federal income tax holiday for 
                          certain individuals.

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

SECTION 1. 6-MONTH FEDERAL INCOME TAX HOLIDAY FOR CERTAIN INDIVIDUALS.

    (a) In General.--In the case of any individual (other than an 
estate or trust), the amount of tax otherwise imposed under section 1 
of the Internal Revenue Code of 1986 for such taxpayer's first taxable 
year beginning after December 31, 2021, shall be reduced by the 6-month 
Federal income tax holiday amount.
    (b) 6-Month Federal Income Tax Holiday Amount.--For purposes of 
this section, the term ``6-month Federal income tax holiday amount'' 
means, with respect to any taxpayer for any taxable year, 50 percent of 
the tax imposed under section 1 of the Internal Revenue Code of 1986 
with respect to such taxpayer for such taxable year (determined without 
regard to this section).
    (c) Phaseout of Benefit Based on Adjusted Gross Income.--
            (1) In general.--If the adjusted gross income of any 
        taxpayer for the taxpayer's first taxable year beginning after 
        December 31, 2021, exceeds the applicable phaseout threshold, 
        the 6-month Federal income tax holiday amount with respect to 
        such taxpayer for such taxable year shall be reduced (but not 
        below zero) by an amount which bears the same ratio to such 
        amount as the applicable phaseout range bears to such excess.
            (2) Applicable phaseout threshold.--For purposes of this 
        subsection, the term ``applicable phaseout threshold'' means--
                    (A) in the case of a joint return or surviving 
                spouse, $83,550,
                    (B) in the case of a head of household, $55,000, 
                and
                    (C) in any other case, $41,775.
            (3) Applicable phaseout range.--For purposes of this 
        subsection, the term ``applicable phaseout range'' means--
                    (A) in the case of a joint return or surviving 
                spouse, $20,000,
                    (B) in the case of a head of household, $13,380, 
                and
                    (C) in any other case, $10,000.
    (d) Certain Terms.--Any term used in this section which is also 
used in section 1 of the Internal Revenue Code of 1986 shall have the 
same meaning when used in this section as when used in such section 1.
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