Simplified USA Tax Act of 2006

Bill: 109-hr-4707
Sponsor: Rep. English, Phil [R-PA-3]
Introduced: 2006-02-08 in the House
Policy area: Taxation
Subjects: Accounting
Administrative procedure
Agriculture and Food
Aliens
Alimony
Americans in foreign countries
Annuities
Armed Forces and National Security
Athletics
Bank accounts
Business travel
Capital gains tax
Cemeteries and funerals
Charitable contributions
Child support
College costs
College sports
Colleges
Commemorations
Commerce
Conservation of natural resources
Contracts
Cooperative societies
Corporate governance
Corporate mergers
Corporation taxes
Cost of living adjustments
Crime and Law Enforcement
Damages
Debt
Department of the Treasury
Depreciation and amortization
Disability insurance
Disabled
Dividends
Divorce
Economics and Public Finance
Education
Education savings accounts
Employee ownership
Employee training
Environmental Protection
Estate tax
Expatriation
Families
Finance and Financial Sector
Financial services
Foreign Trade and International Finance
Foreign corporations
Foster home care
Foundations
Fringe benefits
Gift tax
Gifts
Government Operations and Politics
Government corporations
Habitat conservation
Health
Health insurance
Higher education
Historic sites
History
Home ownership
Housing and Community Development
Housing finance
Immigration
Imports
Income tax
Indexing (Economic policy)
Individual retirement accounts
Insurance companies
Insurance premiums
Interest
Intergovernmental tax relations
International Affairs
Labor and Employment
Land use
Law
Leases
Life insurance
Loan defaults
Lobbying
Losses
Marketing
Married people
Medical economics
Medical research
Medical savings accounts
Medicare
Military pay
Military pensions
Mortgages
Officer personnel
Old age, survivors and disability insurance
Open space lands
Outdoor recreation
Partnerships
Profit
Public Lands and Natural Resources
Railroad retirement plans
Real estate business
Real estate development
Recreation areas
Rent
Salaries
School personnel
Science, Technology, Communications
Single people
Social Welfare
Social security taxes
Sports and Recreation
Sports facilities
Stocks
Tax administration
Tax credits
Tax deductions
Tax deferral
Tax evasion
Tax exclusion
Tax exemption
Tax penalties
Tax rates
Tax refunds
Tax returns
Tax simplification
Tax treaties
Tax-deferred compensation plans
Tax-exempt organizations
Tax-exempt securities
Taxation of foreign income
Teachers
Telecommunication industry
Telephone
Territories (U.S.)
Terrorism
Torts
Transportation and Public Works
Travel costs
Trusts and trustees
Unemployment
Unrelated business income tax
Vocational and technical education
Wages
Withholding tax
Workers' compensation

Summary:
action_date: 2006-02-08
text: 
Simplified USA Tax Act of 2006 - Repeals after 2006 income tax (including the individual and corporate alternative minimum tax) and estate and gift tax provisions of the Internal Revenue Code of 1986. Replaces such provisions with a new tax system, to be known as the Simplified USA Tax. 
 
Establishes three income tax brackets at 15, 25 and 30% for individual taxpayers. Redefines &quot;gross income&quot; and allows certain exclusions from gross income, including previously-taxed benefits, tax-exempt bond interest, compensation for injuries and sickness, and gain from the sale of a principal residence. Allows tax deductions for alimony and child support, home mortgage interest, charitable contributions, certain higher education expenses, and contributions to individual retirement accounts. Allows individual taxpayers: (1) a tax credit for social security payroll taxes; and (2) a refundable tax credit based upon family size and income.
 
Revises rules for individual retirement accounts to allow all taxpayers to make contributions to a Roth IRA up to the amount of their adjusted gross income. Allows tax free withdrawals from Roth IRAs for any purpose after five years. Establishes new tax rules for deductible IRAs, annuities, and endowment and life insurance contracts.
 
Revises tax rules for business entities to: (1) establish an 8% tax rate for the first $150,000 of business profit (12% for profit in excess of $150,000): (2) allow a tax credit for payroll taxes; (3) allow current year expensing of depreciable business property; (4) exempt from taxation all export sales income and other foreign-source income; and (5) redefine concepts relating to gain or loss on the sale of an asset, basis, and nonrecognition transactions.


Legislative actions:
action_date: 2006-02-08
text: Referred to the House Committee on Ways and Means.
action_date: 2006-02-08
text: Introduced in House
action_date: 2006-02-08
text: Introduced in House