S.1145 - SMART Act116th Congress (2019-2020)
|Sponsor:||Sen. Shelby, Richard C. [R-AL] (Introduced 04/11/2019)|
|Committees:||Senate - Finance|
|Latest Action:||Senate - 04/11/2019 Read twice and referred to the Committee on Finance. (All Actions)|
This bill has the status Introduced
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Summary: S.1145 — 116th Congress (2019-2020)All Information (Except Text)
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.