Friday, August 3, 2012

House Passes a Blueprint for Tax Reform - Top Rate 25%

The House of Representatives, on August 2, approved H.R. 6169, the Republican-backed “Pathway to Job Creation througha Simpler, Fairer Tax Code Act of 2012.”

The bill would provide expedited procedures to enable lawmakers in both the House and Senate to overcome technical hurdles that might cause a “comprehensive tax reform” bill to languish during the legislative process.

Comprehensive tax reform would be defined as a bill that:

(1) consolidates the current six individual income tax brackets into not more than two brackets of 10% and not more than 25%;
(2) reduces the corporate tax rate to not greater than 25%;
(3) repeals the alternative minimum tax;
(4) broadens the tax base to maintain revenue between 18% and 19% of the economy; and
(5) changes from a worldwide to a territorial system of taxation.

In the House, the bill would provide that if the Rules Committee fails to provide for consideration of an applicable tax reform bill within 15 days after the Ways and Means Committee reports the tax reform bill, a process for floor consideration of the bill, similar to an open rule, will automatically be put in place. In the Senate, the bill would provide that any applicable tax reform bill would not be subject to a cloture vote on a Motion to Proceed or on individual amendments. A cloture vote may still be required to end consideration of the bill. The expedited procedures also require that amendments be relevant to the underlying bill.
If you need Tax Planning Advise, contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at or or Toll Free at 888-8TaxAid (888 882-9243).

No comments:

Post a Comment