Private Foundation Excise Tax Simplification Act of 2017

Bill: 115-hr-2386
Sponsor: full_name: Rep. Paulsen, Erik [R-MN-3]
Introduced: 2017-05-04
Policy area: Taxation
Subjects: Budget process

Financial services and investments

Sales and excise taxes

Tax-exempt organizations
Latest action: action_date: 2017-05-04
text: Referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, 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.

Summaries:
action_date: 2017-05-04
action_desc: Introduced in House
text: <p><b>Private Foundation Excise Tax Simplification Act of 2017</b></p> <p>This bill amends the Internal Revenue Code to: (1) reduce from 2% to 1% the excise tax rate on the net investment income of tax-exempt private foundations, and (2) repeal the 1% reduction in such tax rate for private foundations that meet certain distribution requirements. The bill also excludes the budgetary effects of this bill from PAYGO scorecards maintained pursuant to the Statutory Pay-As-You-Go Act of 2010.</p>

tv_txt: I 115th CONGRESS 1st Session H. R. 2386 IN THE HOUSE OF REPRESENTATIVES May 4, 2017 Mr. Paulsen (for himself, Mr. Danny K. Davis of Illinois , Mr. Tiberi , Mr. Holding , and Mr. Nolan ) introduced the following bill; which was referred to the Committee on Ways and Means , and in addition to the Committee on the Budget , 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 A BILL To amend the Internal Revenue Code of 1986 to modify the tax rate for excise tax on investment income of private foundations.

1. Short title This Act may be cited as the Private Foundation Excise Tax Simplification Act of 2017 . 2. Modification of the tax rate for the excise tax on investment income of private foundations (a) In general Section 4940(a) of the Internal Revenue Code of 1986 is amended by striking 2 percent and inserting 1 percent . (b) Elimination of reduced tax where foundation meets certain distribution requirements Section 4940 of such Code is amended by striking subsection (e). (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 3. Budgetary effects The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.