Jobs and Growth Reconciliation Tax Act of 2003

Bill: 108-hr-2046
Sponsor: Rep. Rangel, Charles B. [D-NY-15]
Introduced: 2003-05-09 in the House
Policy area: Taxation
Subjects: Administrative procedure
Administrative remedies
Affiliated corporations
Arts, Culture, Religion
Automobiles
Bankruptcy
Business records
Capital gains tax
Civil Rights and Liberties, Minority Issues
Civil actions and liability
Collection of accounts
Commerce
Community development
Computer software
Confidential communications
Congress
Congressional reporting requirements
Corporate debt
Corporate finance
Corporate mergers
Corporation directors
Corporation taxes
Crime and Law Enforcement
Debtor and creditor
Department of the Treasury
Depreciation and amortization
Directories
Dividends
Earned income tax credit
Economics and Public Finance
Education
Elementary and secondary education
Executives
Families
Federal aid to education
Federal-state relations
Finance and Financial Sector
Fines (Penalties)
Foreign Trade and International Finance
Foreign banks and banking
Foreign corporations
Foreign exchange
Fraud
Government Operations and Politics
Government paperwork
Government trust funds
Grants-in-aid
Health
Higher education
Housing and Community Development
Income tax
Information disclosure (Securities law)
Infrastructure
Infrastructure (Economics)
Injunctions
Interest
Investors
Judicial review
Labor and Employment
Labor statistics
Law
Lawyers
Lease and rental services
Legal ethics
Liens
Limitation of actions
Losses
Married people
Medicaid
Motion pictures
Part-time employment
Partnerships
Pension funds
Right of privacy
Science, Technology, Communications
Securities regulation
Small business
Social Welfare
Sound recording and reproducing
State laws
Stockholders
Stocks
Tax administration
Tax credits
Tax deductions
Tax evasion
Tax exclusion
Tax havens
Tax penalties
Tax preparers
Tax rates
Tax refunds
Tax returns
Tax shelters
Tax-deferred compensation plans
Taxation of foreign income
Taxpayers
Terrorism
Transportation and Public Works
Trusts and trustees
Unemployment
Unemployment insurance
Urban affairs
Valuation

Summary:
action_date: 2003-05-09
text: 
Jobs and Growth Reconciliation Tax Act of 2003 - Amends the Internal Revenue Code to accelerate: (1) the increase in the child care credit and the increase in the refundable portion of the credit; (2) the increase in the standard deduction for joint filers to twice that of single filers; and (3) the expansion of the ten percent bracket for married taxpayers filing jointly.
 
Increases the earned income credit phase-out amount on a joint return by $3,000.
 
Extends the work opportunity credit to long-term unemployed individuals.
 
Unemployment Benefits Extension Act - Amends the Temporary Extended Unemployment Compensation Act of 2002 (TEUCA) to: (1) extend the TEUC program; (2) provide for additional weeks of TEUC benefits; (3) revise unemployment rate triggers for TEUC benefit periods; and (4) provide for regular unemployment compensation for certain individuals based on part-time work or an alternative base period.
 
Establishes a program of payments to States to provide: (1) regular unemployment compensation benefits for individuals who otherwise would be ineligible because the base period does not count wages earned in the most recently completed calendar quarter or the individuals seek or are available for less than full-time work; and (2) enhanced unemployment benefits.
 
Establishes in the Treasury the Pressing Domestic Needs Trust Fund.
 
Increases: (1) and extends certain bonus depreciation provisions; and (2) small business expensing limits.
 
Allows a ten percent deduction for income attributable to a corporation's domestic production, with a 2006 through 2009 phase-in period.
 
Eliminates: (1) top individual income tax rate reductions scheduled to began as of 2004 (provides for restoration under specified circumstances); and (2) scheduled elimination of income-based phase-outs for deductions and personal exemptions.
 
Repeals the extraterritorial income exclusion, with a 2004 through 2008 phase-in period.
 
Revises tax shelter provisions to, among other things: (1) define economic substance; (2) impose a penalty for the failure to include in a return information concerning a reportable transaction, a reportable transaction understatement (including imposing the penalty for certain understatements which were based on unreasonable legal or factual assumptions), a noneconomic substance transaction understatement, and interests in foreign financial accounts; (3) modify rules concerning the failure to furnish information regarding reportable transactions and the penalty for such failure, the failure to maintain lists of investors in potentially abusive tax shelters and the penalty for such failure, the authority to seek an injunction to enjoin promoters of abusive tax shelters; and (4) deny a deduction of interest on underpayments attributable to nondisclosed reportable transactions and noneconomic substance transactions. 
 
Amends other provisions to, among other things: (1) place a limit on the transfer or importation by a corporation of built-in losses; (2) provide for the partnership treatment of certain contributed property with a built-in loss; (3) repeal part V (Financial Asset Securitization Investment Trusts) of subchapter M (Regulated Investment Companies and Real Estate Investment Trusts); and (4) modify rules concerning the disallowance of a deduction on certain debt instruments of corporations, passive foreign investment companies, and the reduction in a corporate shareholder's basis in stock by the nontaxed portion of extraordinary dividends. 
 
Revises corporate expatriation provisions to treat acquiring corporations in &quot;corporate expatriation transactions&quot; as domestic corporations. Defines a &quot;corporate expatriation transaction&quot; as, with certain exceptions, one in which a &quot;nominally foreign corporation&quot; acquires substantially all of the properties held by a domestic corporation and in which, immediately after the transaction, more than 80 percent of the stock of the acquiring corporation is held by former shareholders of the domestic corporation. Lowers the 80 percent threshold to 50 percent when the acquiring &quot;nominally foreign corporation&quot; lacks substantial business activities in the foreign country in which it was created and organized compared to the total activities of the &quot;expanded affiliated group&quot; and the stock is publicly traded, with the principal market of trading being the United States. Defines the terms &quot;nominally foreign corporation&quot; an &quot;expanded affiliated group.&quot; Applies similar rules to partnership transactions. Establishes that a series of related transactions relevant to the Act shall be handled as a single transaction.
 
Includes funded deferred compensation in the gross income of certain disqualified employees (corporate insiders).
 


Legislative actions:
action_date: 2003-05-09
text: Referred to the House Committee on Ways and Means.
action_date: 2003-05-09
text: Introduced in House
action_date: 2003-05-09
text: Introduced in House