H.R.2940 - Domestic Corporation Taxation Equality Act of 1987100th Congress (1987-1988)
|Sponsor:||Rep. Frenzel, Bill [R-MN-3] (Introduced 07/15/1987)|
|Committees:||House - Judiciary; Ways and Means|
|Latest Action:||House - 07/20/1987 Referred to Subcommittee on Monopolies and Commercial Law. (All Actions)|
This bill has the status Introduced
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Summary: H.R.2940 — 100th Congress (1987-1988)All Information (Except Text)
Introduced in House (07/15/1987)
Domestic Corporation Taxation Equality Act of 1987 - Amends the Internal Revenue Code to prohibit, with specified exceptions, the States from imposing tax on corporate taxpayers on a worldwide unitary basis unless a taxpayer unconditionally elects to be taxed on such a basis. Includes an express prohibition against the unitary method with respect to a domestic corporation whose average U.S. payroll, property, and sales represent less than 20 percent of its total payroll, property, and sales.
Permits a State to tax dividends received by domestic corporations from their foreign affiliates only to the extent that the State excludes from the tax base of the U.S. corporation: (1) at least 85 percent of such dividends; or (2) the portion of such dividends that effectively bears no Federal income tax after application of the foreign tax credit.