Tax Simplification Act of 2003

Bill: 108-hr-3060
Sponsor: Rep. Smith, Nick [R-MI-7]
Introduced: 2003-09-10 in the House
Policy area: Taxation
Subjects: Civil service retirement
Commerce
Congress
Congressional voting
Corporation taxes
Cost of living adjustments
Economics and Public Finance
Estate tax
Excise tax
Executive compensation
Families
Flat-rate tax
Gift tax
Government Operations and Politics
House rules and procedure
Income tax
Indexing (Economic policy)
Individual retirement accounts
Labor and Employment
Legislation
Legislative amendments
Legislative resolutions
Local employees
Minimum tax
Pension funds
Retirement income
Self-employed
Senate rules and procedure
Social Welfare
State employees
Tax credits
Tax deductions
Tax exclusion
Tax expenditures
Tax penalties
Tax rates
Tax simplification
Tax-deferred compensation plans
Tax-exempt organizations
Unemployment insurance

Summary:
action_date: 2003-09-10
text: 
Tax Simplification Act of 2003 - Amends the Internal Revenue Code to impose a 19 percent tax (17 percent after December 31, 2004) on the taxable income of every individual. 
 
Redefines "taxable income" to mean the amount by which wages, retirement distributions, and unemployment compensation exceed the standard deduction. Increases the basic standard deduction and includes an additional standard deduction for dependents. Includes in taxable income the taxable income of each dependent child under the age of 14.
Replaces the current tax on corporations with a tax on every person engaged in a business activity equal to 19 percent (17 percent after December 31, 2004) of the business taxable income of such person. Makes the person engaged in the business activity liable for the tax.
Imposes a tax of 19 percent (17 percent after December 31, 2004) on the value of excludable compensation provided during the year by an employer for the benefit of employees. Makes the employer liable for the tax.
Repeals specified provisions: (1) relating to pension plans; and (2) imposing a tax on any employer reversion from a qualified plan.
Revises requirements regarding transfers of excess pension assets.
Repeals provisions respecting: (1) alternative minimum tax; (2) tax credits; (3) estate and gift taxes; and (4) subject to exception, normal taxes and surtaxes. 
Makes it not in order in the House of Representatives or the Senate, unless waived or suspended in the House or the Senate by a three-fifths vote of the Members, to consider any bill, joint resolution, amendment thereto, or conference report thereon that includes any provision that increases an income tax rate, creates an additional tax rate, reduces the standard deduction, or provides any exclusion, deduction, credit, or other benefit that results in a reduction in Federal revenues.

Legislative actions:
action_date: 2003-09-10
text: Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2003-09-10
text: Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2003-09-10
text: Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2003-09-10
text: Introduced in House
action_date: 2003-09-10
text: Introduced in House
action_date: 2003-09-09
text: Sponsor introductory remarks on measure. (CR H8065)