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Bill PDFBillno should always have and extension i.e. h1.ih

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Congressional Record References

Bill Summary & Status

HR 301 IH

To amend the Internal Revenue Code of 1986 to prevent pending tax increases and to provide additional tax reductions to stimulate economic growth.

January 8, 2009

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

To amend the Internal Revenue Code of 1986 to prevent pending tax increases and to provide additional tax reductions to stimulate economic growth.

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 `Economic Growth Through Tax Stimulus Act of 2009'.

SEC. 2. EGTRRA, JGTRRA, AND CERTAIN OTHER TAX RELIEF MADE PERMANENT.

(a) Economic Growth and Tax Relief Reconciliation Act of 2001- Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 is hereby repealed.

(b) Income Tax Rates on Dividends and Net Capital Gain- Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 is hereby repealed.

(c) Deduction for State and Local Sales Taxes- Paragraph (5) of section 164(b) of the Internal Revenue Code of 1986 is amended by striking subparagraph (I).

(d) Deduction for Tuition and Related Expenses- Section 222 of such Code is amended by striking subsection (e).

(e) Increased Expensing for Small Business-

(1) DOLLAR LIMITATION- Paragraph (1) of section 179(b) of such Code (relating to dollar limitation) is amended by striking `$25,000 ($125,000 in the case of taxable years beginning after 2006 and before 2011)' and inserting `$125,000'.

(2) INCREASE IN QUALIFYING INVESTMENT AT WHICH PHASEOUT BEGINS- Paragraph (2) of section 179(b) of such Code (relating to reduction in limitation) is amended by striking `$200,000 ($500,000 in the case of taxable years beginning after 2006 and before 2011)' and inserting `$500,000'.

(3) INFLATION ADJUSTMENTS- Section 179(b)(5)(A) of such Code (relating to inflation adjustments) is amended by striking `and before 2011'.

(4) REVOCATION OF ELECTION- Section 179(c)(2) of such Code (relating to election irrevocable) is amended by striking `and before 2011'.

(5) COMPUTER SOFTWARE- Clause (ii) of section 179(d)(1)(A) of such Code is amended by striking `and before 2011'.

(f) Effective Date- The amendments made by this section shall take effect on the date of the enactment of this Act.

SEC. 3. TEMPORARY REDUCTION IN INDIVIDUAL TAX RATES.

(a) In General- Section 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

`(j) Economic Stimulus Rate Reductions- In the case of taxable years beginning in a calendar year after 2008 and before 2014--

`(1) the 10 percent and 15 percent rates of tax specified in subsection (i)(1) shall each be reduced by 5 percentage points,

`(2) the last line of the table in subsection (i)(2) shall be applied by substituting--

`(A) `20.0%' for `25.0%',

`(B) `23.0%' for `28.0%',

`(C) `25.0%' for `33.0%', and

`(D) `25.0%' for `35.0%', and

`(3) the adjustment of the tables prescribed under subsection (f) required by subsection (i)(3) shall be further adjusted to carry out this subsection.'.

(b) Conforming Amendment- Section 15 of such Code is amended by adding at the end the following new subsection:

`(g) Economic Stimulus Rate Reductions- This section shall not apply to any change in rates under subsection (j) of section 1 (relating to economic stimulus rate reductions).'.

(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

SEC. 4. REDUCTION IN CORPORATE INCOME TAX RATES.

(a) In General- Section 11 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

`(e) Economic Stimulus Rate Reductions- In the case of taxable years beginning in a calendar year after 2008 and before 2014--

`(1) subsection (b)(1) shall be applied by disregarding--

`(A) `but does not exceed $75,000,' in subparagraph (B) thereof,

`(B) subparagraphs (C) and (D) thereof, and

`(C) the last 2 sentences,

`(2) subsection (b)(2) shall be applied by substituting `25 percent' for `35 percent', and

`(3) paragraphs (1) and (2) of section 1445(e) shall each be applied by substituting `25 percent' for `35 percent'.'.

(b) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

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