H.R.5124 - To amend the Internal Revenue Code of 1986 to limit the interest deduction allowed corporations and to allow a deduction for dividends paid by corporations.103rd Congress (1993-1994)
|Sponsor:||Rep. Reynolds, Mel [D-IL-2] (Introduced 09/28/1994)|
|Committees:||House - Ways and Means|
|Latest Action:||09/29/1994 Sponsor introductory remarks on measure. (All Actions)|
This bill has the status Introduced
Here are the steps for Status of Legislation:
Summary: H.R.5124 — 103rd Congress (1993-1994)All Information (Except Text)
Introduced in House (09/28/1994)
Amends the Internal Revenue Code to reduce the deduction for corporate interest payments by 20 percent. Excepts small corporations and farming businesses from such reduction.
Allows corporations a deduction of 50 percent of the dividends paid during a taxable year. Limits such deduction to the amount in the qualified dividend account established by the corporation for the payment of such dividends.
Prohibits the following corporations from using such deduction: (1) regulated investment companies; (2) real estate investment trusts; (3) an S corporation (certain small business corporations); (4) cooperative organizations; and (5) foreign sales corporations and domestic international sales corporations.
Provides for an increase in the withholding tax on dividends paid to nonresident aliens or foreign corporations to reflect the dividend paid deduction.
Requires, in the case of the acquisition of assets of a corporation by another corporation, that the acquiring corporation carryover the qualified dividend account.