H.R.5050 - Tax Relief Act of 197996th Congress (1979-1980)
|Sponsor:||Rep. Conable, Barber B., Jr. [R-NY-35] (Introduced 08/01/1979)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 08/01/1979 Referred to House Committee on Ways and Means. (All Actions)|
This bill has the status Introduced
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Summary: H.R.5050 — 96th Congress (1979-1980)All Information (Except Text)
Introduced in House (08/01/1979)
Tax Relief Act of 1979 - Title I: Individual Income Tax Reductions - Amends the Internal Revenue Code to reduce individual and estate and trust income tax rates for 1979 and to make permanent reductions for succeeding years.
Provides for cost-of-living adjustments to individual income tax brackets and to the amount of the personal exemption.
Provides that the amount of the personal exemption and the zero bracket amount applicable to a taxpayer shall determine whether such taxpayer is required to file an income tax return.
Title II: Capital Cost Recovery - Revises the method for determining useful lives of business assets for purposes of computing allowable depreciation deductions. Replaces the asset depreciation range (ADR) method with a schedule of capital cost recovery periods for three classes of business property.
Establishes capital cost recovery periods for the following classes of business property: (1) buildings and their structural components, ten years; (2) tangible property, five years; and (3) automobiles, taxis, and light-duty trucks (up to $100,000), three years. Allows a ten percent investment tax credit for buildings and tangible property, and a six percent credit for automobiles, taxis, and light duty trucks. Requires the recapture of depreciation amounts and investment tax credit amounts applicable to assets which are sold or otherwise disposed of prior to the expiration of the capital cost recovery period. Permits a taxpayer to deduct less than the full allowance for capital cost recovery in any taxable year. Permits a carryover to succeeding taxable years of any unused depreciation amounts.
Disqualifies capital cost recovery property from the allowance for first year depreciation.
Treats amounts claimed as the capital cost recovery of noncorporate lessors as an item of tax preference for purposes of the minimum tax.
Adopts as an accounting practice the "half year convention" under which investments eligible for capital cost recovery treatment or the investment tax credit which are made at any time during the taxable year are deemed to be made in the middle of such year.
Title III: Reduction of Payroll Taxes and Long-Range Financial Strengthening of the Social Security System - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to repeal the special increases in the contribution and benefit base, for purposes of determining amount of tax liability, for 1979 through 1981. Limits contribution and benefit bases to a maximum $22,900 in 1979 and 1980.
Makes reductions in the social security tax rate and sets forth the tax rate through year 2010.
Provides for the partial funding of title XVIII (Medicare), part A (Hospital Insurance Benefits for the Aged and Disabled) of the Social Security Act from general revenues.