Summary: H.R.2717 — 107th Congress (2001-2002)All Information (Except Text)

There is one summary for H.R.2717. Bill summaries are authored by CRS.

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Introduced in House (08/02/2001)

Individual Tax Freedom Act of 2001 - Repeals the income, estate, gift, and certain excise tax provisions of the Internal Revenue Code.

Amends the Internal Revenue Code to impose a 15 percent tax on the use, consumption or enjoyment in the U.S. of any property or service produced or rendered within or without of the United States. Prohibits, subject to exception, imposing a tax on any property or service purchased for: (1) a business purpose in an active trade or business; or (2) export from the United States for use or consumption outside of the Unites States, provided that the purchaser provided the seller with either an intermediate sales certificate or an export sales certificate. Sets forth provisions concerning credits and refunds.

Allows for general credits against the tax, including: (1) a used property credit; (2) a business use conversion credit; (3) an administration credit; (4) a compliance equipment cost credit; (5) a bad debt credit; (6) an insurance proceeds credit; and (7) a transition inventory credit.

Provides for installment payments of the tax on the purchase of a principal residence.

Allows an eligible family unit to receive a sales tax rebate.

Directs an administering State to administer, collect, and remit to the U.S. Treasury the tax on gross payments for the use, consumption or enjoyment of taxable property or services within the State.

Prohibits the authorizing of any appropriations for the Internal Revenue Service after FY 2005. Establishes in the Treasury: (1) an Excise Tax Bureau to administer any excise taxes not repealed by this Act; and (2) a Sales Tax Bureau to administer the national sales tax.

Authorizes the Social Security Administration to collect and administer self-employment income and employment taxes.

Requires a supermajority in the House of Representatives or the Senate to raise rates.