Summary: S.1145 — 116th Congress (2019-2020)All Information (Except Text)

There is one summary for S.1145. Bill summaries are authored by CRS.

Shown Here:
Introduced in Senate (04/11/2019)

Simplified, Manageable, And Responsible Tax Act or the SMART Act

This bill replaces the marginal income tax rates in the Internal Revenue Code with a single rate of 17% on individual taxable income.

The bill redefines "taxable income" to mean the amount by which wages, retirement distributions, and unemployment compensation exceed the standard deduction. It also

  • increases the basic standard deduction,
  • includes an additional standard deduction for dependents, and
  • includes the taxable income of each dependent child under the age of 14 in an individual's taxable income.

The bill revises the tax on corporations to (1) replace it with a tax on every person engaged in a business activity equal to 17% of the business taxable income of such person; and (2) make the person engaged in the business activity liable for the tax, whether or not such person is an individual, a partnership, or a corporation.

The bill imposes on employers a 17% tax on the value of excludable compensation provided during the year to employees.

With respect to pension rules, the bill (1) repeals rules relating to non-discrimination, contribution limits, and restrictions on distributions; and (2) revises rules relating to transfers of excess pension assets.

The bill also repeals

  • the alternative minimum tax;
  • all income tax credits;
  • estate, gift, and generation-skipping transfer taxes; and
  • income tax provisions, except certain provisions relating to retirement distributions and tax-exempt organizations.

The bill prohibits Congress from considering legislation to make specified changes to tax policy unless Congress waives or suspends the prohibition with a three-fifths vote.