H. R. 5986
IN THE HOUSE OF REPRESENTATIVES
July 28, 2006
Mr. Chocola (for himself, Mr. Herger, Mr. Weller, Ms. Hart, Mr. English of Pennsylvania, Mr. Pence, Mr. Souder, Mr. Gingrey, Mr. Flake, Mr. Barrett of South Carolina, Mr. Gutknecht, Mr. Kuhl of New York, Mr. Radanovich, Mr. Paul, Mr. Campbell of California, Mr. Pitts, and Mr. Ryan of Wisconsin) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to eliminate the limitation on the foreign earned income exclusion, and for other purposes.
This Act may be cited as the
Working American Competitiveness
Elimination of limitation on foreign earned income exclusion
Subsections (a) and (b) of section 911 of the Internal Revenue Code of 1986 (relating to citizens or residents of the United States living abroad) are amended to read as follows:
Exclusion from gross income
At the election of a qualified individual, there shall be excluded from the gross income of such individual, and exempt from taxation under this subtitle, for any taxable year, the foreign earned income of such individual.
Foreign earned income
For purposes of this section—
The term foreign earned income with respect to any individual means the amount received by such individual from sources within a foreign country or countries which constitute earned income attributable to services performed by such individual during the period described in subparagraph (A) or (B) of subsection (d)(1), whichever is applicable.
Certain amounts not included in foreign earned income
The foreign earned income for an individual shall not include amounts—
received as a pension or annuity,
paid by the United States or an agency thereof to an employee of the United States or an agency thereof,
included in gross income by reason of section 402(b) (relating to taxability of beneficiary of nonexempt trust) or section 403(c) (relating to taxability of beneficiary under a nonqualified annuity), or
received after the close of the taxable year following the taxable year in which the services to which the amounts are attributable are performed.
Section 911 of the Internal Revenue Code of 1986 is amended by striking subsection (c) and by redesignating subsections (e), (f), and (g) as subsections (c), (e), and (f), respectively.
Section 911(d) of such Code is amended by striking paragraph (7) and by redesignating paragraph (8) as paragraph (7).
1402(a)(11) of such Code is amended by striking
911(a)(1) and inserting
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.