H.R. 4130 (111th): Share the Sacrifice Act of 2010

111th Congress, 2009–2010. Text as of Nov 19, 2009 (Introduced).

Status & Summary | PDF | Source: GPO

I

111th CONGRESS

1st Session

H. R. 4130

IN THE HOUSE OF REPRESENTATIVES

November 19, 2009

(for himself, Mr. Murtha, Mr. Larson of Connecticut, Ms. Eshoo, Mr. Farr, Mr. Frank of Massachusetts, Mr. Grijalva, Ms. McCollum, Mr. McDermott, Mr. McGovern, and Ms. Linda T. Sánchez of California) 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 establish a temporary surtax to offset the costs of the Afghanistan war.

1.

Short title

This Act may be cited as the Share the Sacrifice Act of 2010.

2.

Establishment of temporary Afghanistan war surtax

(a)

In general

Subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to normal taxes and surtaxes) is amended by adding at the end the following new part:

VIII

Temporary Afghanistan war surtax

Sec. 59B. Temporary Afghanistan war surtax.

59B.

Temporary Afghanistan war surtax

(a)

In general

In the case of any taxable year beginning after 2010—

(1)

Joint returns

In the case of a joint return with net income tax liability, the tax imposed under this chapter shall be increased by the amount of the surtax determined in accordance with the following table:

If net income tax
 liability is:The surtax is:
Not over $22,6001% of net income tax liability.
Over $22,600 but not over $36,400$226, plus the applicable percentage of the excess over $22,600.
Over $36,400$226, plus the applicable percentage of $13,800, plus twice the applicable percentage of the excess over $36,400.
(2)

Other individuals, trusts, and estates

In the case of any individual, trust, or estate with net income tax liability (other than a joint return), the tax imposed under this chapter shall be increased by the amount of the surtax determined in accordance with the following table:

If net income tax
 liability is:The surtax is:
Not over $11,3001% of net income tax liability.
Over $11,300 but not over $18,200$113, plus the applicable percentage of the excess over $11,300.
Over $18,200$113, plus the applicable percentage of $6,900, plus twice the applicable percentage of the excess over $18,200.
(3)

Corporations

In the case of any corporation with net income tax liability, the tax imposed under this chapter shall be increased by an amount equal to such net income tax liability multiplied by twice the applicable percentage.

(b)

Applicable percentage

For purposes of this section—

(1)

In general

The term applicable percentage means, with respect to any taxable year beginning in a calendar year, the percentage which is determined by the President with respect to such calendar year under paragraph (2).

(2)

Determination of applicable percentage

The applicable percentage determined by the President with respect to any calendar year shall be the percentage which the President estimates will result in revenues to the Treasury under this section for taxable years beginning in such calendar year which are equal to the Federal expenditures related to the war in Afghanistan during the fiscal year ending in the preceding calendar year.

(c)

Certain exceptions for individuals

(1)

Certain exceptions related to military service

(A)

In general

Subsection (a) shall not apply to—

(i)

any member of the Armed Forces of the United States who received compensation which was excludible from gross income under section 112 (relating to certain combat zone compensation of members of the Armed Forces) during the taxable year involved or any taxable year ending on or after September 11, 2001, or

(ii)

any individual who received a death gratuity payable under chapter 75 of title 10, United States Code, with respect to any decedent who—

(I)

is described in clause (i), and

(II)

died on or after September 11, 2001, and before the close of the taxable year involved.

(B)

Joint returns

In the case of a joint return, the taxpayer shall be treated as described in clause (i) or (ii) of subparagraph (A) if either spouse is so described.

(2)

Exception based on adjusted gross income

Subsection (a) shall not apply to any individual if the adjusted gross income of the taxpayer is not in excess of $30,000.

(d)

Net income tax liability defined

For purposes of this section, the term net income tax liability means the excess of—

(1)

the sum of the regular tax liability (as defined in section 26(b)) and the tax imposed by section 55, over

(2)

the credits allowed under part IV (other than sections 31, 33, and 34).

(e)

Delay in application if President determines economy too weak

If the President determines that the United States economy is too weak to absorb the tax imposed under this section, the President may delay the implementation of such tax for up to 1 year.

(f)

Not treated as tax imposed by this chapter for certain purposes

The tax imposed under this part shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter or for purposes of section 55.

(g)

Termination

The tax imposed under this section shall not apply to taxable years beginning in any calendar year if the applicable percentage determined with respect to such calendar year is zero.

.

(b)

Clerical amendment

The table of parts for subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

Part VIII. Temporary Afghanistan war surtax

.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2010.

(d)

Section 15 not To apply

The amendment made by subsection (a) shall not be treated as a change in a rate of tax for purposes of section 15 of the Internal Revenue Code of 1986.