< Back to H.R. 214 (104th Congress, 1995–1996)

Text of the Crane Tithe Tax Act of 1995

This bill was introduced on January 4, 1995, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jan 4, 1995 (Introduced).

Source: GPO

HR 214 IH

104th CONGRESS

1st Session

H. R. 214

To amend the Internal Revenue Code of 1986 to repeal the income taxation of corporations, to impose a 10 percent tax on the earned income (and only the earned income) of individuals, to repeal the estate and gift taxes, to provide amnesty for all tax liability for prior taxable years, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

January 4, 1995

Mr. CRANE introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to repeal the income taxation of corporations, to impose a 10 percent tax on the earned income (and only the earned income) of individuals, to repeal the estate and gift taxes, to provide amnesty for all tax liability for prior taxable years, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Crane Tithe Tax Act of 1995’.

SEC. 2. REPEAL OF TAXATION OF CORPORATIONS.

    The following provisions of the Internal Revenue Code of 1986 are hereby repealed:

      (1) section 11 (relating to corporate income tax),

      (2) section 55 (relating to alternative minimum tax) insofar as it applies to corporations,

      (3) section 511 (relating to unrelated business income tax),

      (4) section 531 (relating to accumulated earnings tax),

      (5) section 541 (relating to personal holding company tax),

      (6) section 594 (relating to alternative tax for certain mutual savings banks),

      (7) section 801 (relating to tax imposed on life insurance companies),

      (8) section 821 (relating to tax imposed on certain mutual insurance companies),

      (9) section 831 (relating to tax on certain other insurance companies),

      (10) section 852 (relating to tax on regulated investment companies),

      (11) section 857 (relating to tax on real estate investment trusts), and

      (12) section 882 (relating to tax on income of foreign corporations connected with United States business).

SEC. 3. 10 PERCENT INCOME TAX RATE FOR INDIVIDUALS.

    Section 1 of the Internal Revenue Code of 1986 (relating to tax imposed on individuals) is amended to read as follows:

‘SECTION 1. TAX IMPOSED.

    ‘(a) IN GENERAL- There is hereby imposed on the income of every individual a tax equal to 10 percent of the excess of the earned income of such individual for the taxable year over the exemption amount for such year.

    ‘(b) DEFINITIONS- For purposes of this section--

      ‘(1) EXEMPTION AMOUNT-

        ‘(A) IN GENERAL- The term ‘exemption amount’ means, for any taxable year, $10,000 increased (for taxable years beginning after December 31, 1995) by an amount equal to $10,000 multiplied by the cost-of-living adjustment for the calendar year in which the taxable year begins.

        ‘(B) COST-OF-LIVING ADJUSTMENT- For purposes of this paragraph--

          ‘(i) IN GENERAL- The cost-of-living adjustment for any calendar year is the percentage (if any) by which--

            ‘(I) the CPI for October of the preceding calendar year, exceeds

            ‘(II) the CPI for October of 1994.

          ‘(ii) CPI- The term ‘CPI’ means the last Consumer Price Index for all-urban consumers published by the Department of Labor.

        ‘(C) ROUNDING- If the increase determined under this paragraph is not a multiple of $10, such increase shall be rounded to the nearest multiple of $10 (or if such increase is a multiple of $5, such increase shall be increased to the next highest multiple of $10).

      ‘(2) EARNED INCOME-

        ‘(A) IN GENERAL- Except as provided in subparagraph (B), the term ‘earned income’ means--

          ‘(i) wages, salaries, and other employee compensation,

          ‘(ii) the amount of the taxpayer’s net earnings from self-employment for the taxable year, and

          ‘(iii) the amount of dividends which are from a personal service corporation or which are otherwise directly or indirectly compensation for services.

        ‘(B) EXCEPTIONS- The term ‘earned income’ does not include--

          ‘(i) any amount received as a pension or annuity, or

          ‘(ii) any tip unless the amount of the tip is not within the discretion of the service-recipient.

        ‘(C) FRINGE BENEFITS VALUED AT EMPLOYER COST- The amount of any fringe benefit which is included as earned income shall be the cost to the employer of such benefit.’

SEC. 4. AMNESTY FOR ALL PRIOR TAX LIABILITY.

    (a) IN GENERAL- No person shall be liable for any tax imposed by chapter 1 of the Internal Revenue Code of 1986 (or for penalties and interest with respect to such tax) for any taxable year ending before January 1, 1994.

    (b) EXCEPTIONS-

      (1) AMOUNTS PAID- Subsection (a) shall not apply to amounts paid before the date of the enactment of this Act.

      (2) TAX ATTRIBUTABLE TO ILLEGAL ACTIVITIES- Subsection (a) shall not apply to any tax (including penalties and interest with respect to such tax) attributable to any business activity which is in violation of any Federal, State, or local law.

SEC. 5. REPEAL OF SPECIAL DEDUCTIONS, CREDITS, AND EXCLUSIONS FROM INCOME FOR INDIVIDUALS.

    Chapter 1 of the Internal Revenue Code of 1986 is amended by striking out all specific exclusions from gross income, all deductions, and all credits against income tax to the extent related to the computation of individual income tax liability.

SEC. 6. REPEAL OF ESTATE AND GIFT TAXES.

    Subtitle B of the Internal Revenue Code of 1986 (relating to estate, gift, and generation-skipping taxes) is hereby repealed.

SEC. 7. EFFECTIVE DATES.

    (a) IN GENERAL- Except as provided in subsection (b), the amendments made by this Act shall apply to taxable years beginning after the date of the enactment of this Act.

    (b) REPEAL OF ESTATE AND GIFT TAXES- The repeal made by section 6 shall apply to estates of decedents dying, and transfers made, after the date of the enactment of this Act.

    (c) TECHNICAL AND CONFORMING CHANGES- The Secretary of the Treasury or his delegate shall, as soon as practicable but in any event not later than 90 days after the date of the enactment of this Act, submit to the Committee on Ways and Means of the House of Representatives a draft of any technical and conforming changes in the Internal Revenue Code of 1986 which are necessary to reflect throughout such Code the changes in the substantive provisions of law made by this Act.