113 S3005 IS: Progressive Consumption Tax Act of 2014
U.S. Senate
2014-12-11
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.(a)
This Act may be cited as the
Progressive Consumption Tax Act of 2014
.
(b)Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other provision
of the Internal Revenue Code of 1986.(c)The table of contents of this Act is as follows:Sec. 1. Short title, etc.
TITLE I—Progressive consumption tax
Sec. 101. Imposition of progressive consumption tax.
TITLE II—Individual and corporate tax reform
Subtitle A—Individual income tax reforms
Sec. 201. Individual income tax rate reductions.
Sec. 202. Family allowance amounts.
Sec. 203. Repeal of limitations relating to itemized deductions.
Sec. 204. Termination of separate treatment of capital gains.
Sec. 205. Repeals.
Sec. 206. Establishment of progressive tax rebate.
Sec. 207. Technical and conforming amendments.
Subtitle B—Corporate tax reforms
Sec. 211. Corporate income tax rate reduction.
TITLE III—Refund of excess consumption tax revenue
Sec. 301. Refunds of excess consumption tax revenue.
<enum>I</enum><header>Progressive consumption tax</header><section id="idC702D4B88B08431C87DBE0F3CE17CD24"><enum>101.</enum><header>Imposition of progressive consumption tax</header><subsection id="HDB061B1FF670413FBB426FE2F2BB0003"><enum>(a)</enum><header>In
General</header><text>Subtitle D is amended by inserting before chapter 31
the
following new chapter:</text>
<quoted-block id="HCE894F09429040C19141ECA9B0C400F2" style="OLC">
<chapter id="HABC7FB8F73BD478FBAAFAB04168C00EC"><enum>30</enum><header>Progressive consumption tax</header>
<toc regeneration="no-regeneration">
<toc-entry level="subchapter">Subchapter A. Imposition of
tax</toc-entry>
<toc-entry level="subchapter">Subchapter B. Taxable
supply</toc-entry>
<toc-entry level="subchapter">Subchapter C. Credit against tax</toc-entry>
<toc-entry level="subchapter">Subchapter D.
Administration</toc-entry>
<toc-entry level="subchapter">Subchapter E. Definitions and special
rules</toc-entry>
</toc>
<subchapter id="id74223FED5462471DADE316915BC469A0"><enum>A</enum><header>Imposition of
Tax</header>
<toc><toc-entry idref="H4316993302D846C0AF67EAB3BF9904FC" level="section">Sec. 3901. Imposition of tax.</toc-entry>
<toc-entry idref="idF9A45AB91B7941E085AAF4E9CF947165" level="section">Sec. 3902. Taxable amount.</toc-entry>
</toc>
<section id="H4316993302D846C0AF67EAB3BF9904FC"><enum>3901.</enum><header>Imposition of
tax</header>
<subsection id="HE0E21CF0129443DEBB003216A2174873"><enum>(a)</enum><header>General
Rule</header><text>A tax is hereby imposed on every taxable supply.</text>
</subsection><subsection id="H673D975BB70F4080A33D719596C6BAFA"><enum>(b)</enum><header>Amount of
Tax</header><paragraph id="idC163F7742E934B73A06D9615C44E8032"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amount of
the tax shall be 10 percent of the taxable amount.</text></paragraph><paragraph id="id4F02F715FD084547AB5F9B81ED2DBEC3"><enum>(2)</enum><header>Special rate for exports</header><text>The
amount of the tax shall be zero with respect to the provision of
any
supply which is—</text><subparagraph id="id7ab06ed1f3a141a0a7f06c329e737853"><enum>(A)</enum><text>a supply of tangible personal property that is exported from the United States within 90 days after
the provider gives an invoice for the supply, or</text></subparagraph><subparagraph id="idb635b6c78af64e6891f58d888c3c78df"><enum>(B)</enum><text>a supply, other than a supply of tangible personal property—</text><clause id="id67d3f9ceada4466881b9a7d7154122fa"><enum>(i)</enum><text>which is provided to a recipient that is not in the United States when the supply is performed or
otherwise done, and</text></clause><clause id="idab581f98af9246b0af579049fd581616"><enum>(ii)</enum><text>the use of which takes place outside of the United States.</text></clause></subparagraph></paragraph></subsection></section><section id="idF9A45AB91B7941E085AAF4E9CF947165"><enum>3902.</enum><header>Taxable
amount</header>
<subsection id="id5CA83E98CEEE4224B18D82AC47EE808D"><enum>(a)</enum><header>Amount charged
customer</header><text>For purposes of this chapter, the taxable amount for any
taxable supply for which money is the only consideration shall be
the
price
charged by the provider—</text>
<paragraph id="idFA92C1AD5E264CC38FABE8B4ADCFF2A7"><enum>(1)</enum><text>including all
invoiced charges for transportation, and other items payable to the
provider with
respect to the supply, but</text>
</paragraph><paragraph id="idF1EB77DA05244692AAFA06DB59C0A91A"><enum>(2)</enum><text>excluding the tax
imposed by section 3901 with respect to the supply and
excluding any
State and local sales and use taxes with respect to the supply.</text>
</paragraph></subsection><subsection id="idEEE5AC811DE948F096CDC434D233D935"><enum>(b)</enum><header>Barter transactions</header><text>For
purposes of this chapter, the taxable amount for any taxable supply
which includes consideration other than money shall be the fair market
value of the consideration (including all
invoiced charges for transportation and other items payable to the
provider) plus the amount of any money paid in
consideration.</text>
</subsection><subsection id="id9A4507C874414CBDB3651B7E1F7B8092"><enum>(c)</enum><header>Imports</header><text>For
purposes of this chapter, the taxable amount in the case of any
import shall
be—</text>
<paragraph id="id7AEA24FB6BA744808609FB28E74DB7EA"><enum>(1)</enum><text>the customs value
plus customs duties and any other duties which may be imposed, or</text>
</paragraph><paragraph id="id993003F25D4349C2940054D93FBAEA36"><enum>(2)</enum><text>if there is no
such customs value, the fair market value (determined as if the
importer had
sold the supply).</text>
</paragraph><continuation-text continuation-text-level="subsection">For purposes of this subsection, the customs value of any import shall include all
invoiced charges for transportation and other items payable to the
importer with
respect to the supply.</continuation-text></subsection><subsection commented="no" id="idE3C130A672094C80A02136F2E6E7DC63"><enum>(d)</enum><header>Special rule in
the case of sales of certain used consumer goods</header><text>For purposes of
this chapter, if—</text>
<paragraph commented="no" id="id3A98F23F47744FD5B3E1CAF5DF4E1659"><enum>(1)</enum><text>a person
acquires any tangible personal property in a transaction which was
not taxable under this chapter, and</text>
</paragraph><paragraph commented="no" id="idACF4534A15CF408E9C16B430449F6758"><enum>(2)</enum><text>such property had
been used by an ultimate consumer before such acquisition,</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">the
taxable amount in the case of any sale of such property by such
person
(determined without regard to this subsection) shall be reduced by
the amount
paid for such property by such person.</continuation-text></subsection></section></subchapter><subchapter id="HE8782043D651434CBC1039EBBABDDF1B"><enum>B</enum><header>Taxable
supply</header>
<toc><toc-entry idref="H491402445E8C42C39343AE656263DF66" level="section">Sec. 3911. Taxable supply.</toc-entry>
<toc-entry idref="H654C97A260324A1890B810007BAF0001" level="section">Sec. 3912. Supplies made in connection with the United States.</toc-entry>
<toc-entry idref="id9FD19B0E54EE4AA8AE4E8593F09CC7A2" level="section">Sec. 3913. Exempt supply.</toc-entry>
</toc>
<section id="H491402445E8C42C39343AE656263DF66"><enum>3911.</enum><header>Taxable
supply</header><subsection id="idE1CA0CB91D8244F69F071E7A859377C0"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of
this chapter, the term <term>taxable supply</term> means—</text><paragraph id="id0FBA73ADABA74B4B8DDEB20669259370"><enum>(1)</enum><text display-inline="yes-display-inline">the importation of property into the United States, and</text></paragraph><paragraph id="idCA4830AF87CB4495B196967EAA049ABE"><enum>(2)</enum><text display-inline="yes-display-inline">any supply (other than an exempt supply)—</text><subparagraph id="idC0A432DAAB8C4EAD94131E2E7A010980"><enum>(A)</enum><text display-inline="yes-display-inline">which is provided—</text><clause id="id17161096E4CF4BC5A520876A89D9B335"><enum>(i)</enum><text display-inline="yes-display-inline">in the course of carrying on a trade or business,</text></clause><clause id="id60B80CCC5B9B4F3393D109707D2945DC"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of an organization exempt from tax under section 501(a), in furtherance of the
activities related to the purpose or function constituting the basis of
its exemption under section 501, or</text>
</clause><clause id="idE4F60E1EDA3D44E5B390497BC80B99BB"><enum>(iii)</enum><text>in the case of a State, an Indian tribal government, a possession of the United States, or any
political subdivision of any
of the foregoing, or the United States or the District of Columbia, in
carrying out any activity that is not an essential governmental function,</text></clause></subparagraph><subparagraph id="idE345903A477040F4996F200D56C3B8FE"><enum>(B)</enum><text>for which consideration is provided in return, and</text></subparagraph><subparagraph id="idA3A3903F875348DC9F58FDB6CFA29A67"><enum>(C)</enum><text>which is made in connection with the United States.</text></subparagraph></paragraph></subsection><subsection id="id95AC878F2C5046728EE478DD564FDEDD"><enum>(b)</enum><header>Supply</header><text>For purposes of this chapter—</text><paragraph id="id9818A2C4DF0447CDA5DCD8B2459FFE79"><enum>(1)</enum><header>In general</header><text>The term <term>supply</term> means any supply whatsoever, including—</text><subparagraph id="id4491835BDFA14DC499AEB44FE7962BA6"><enum>(A)</enum><text>the sale or provision (including through renting, leasing, or licensing) of property,</text></subparagraph><subparagraph id="id0F428ADB3CD04C5AB8AF641E6DBC1AE7"><enum>(B)</enum><text>the performance of services,</text></subparagraph><subparagraph id="id6F46B19EBEBC4375B080E14F37E36F59"><enum>(C)</enum><text>the grant, assignment, or surrender of real property,</text></subparagraph><subparagraph id="id4E2E9324E69947568D171741CC6FAEAF"><enum>(D)</enum><text>the creation, grant, transfer, assignment, or surrender of any right,</text></subparagraph><subparagraph id="id5CCA8A740F734282AD7AD5089877F487"><enum>(E)</enum><text>financial supplies, and</text></subparagraph><subparagraph id="id603CE0E97F5F40DEA20DF15F6FE4D23D"><enum>(F)</enum><text>an entry into, or release from, an obligation or agreement to perform or refrain from performing an
act.</text></subparagraph></paragraph><paragraph id="id23D73FB6F1724366B0D69DE0FAD88374"><enum>(2)</enum><header>Special rule for services for employer</header>
<text>An employee’s services for the employee’s employer shall
not be treated as a supply.</text></paragraph></subsection></section><section id="H654C97A260324A1890B810007BAF0001"><enum>3912.</enum><header>Supplies made
in connection with the United States</header>
<subsection id="HA6C33F64F2244622BE4FF12CC273A711"><enum>(a)</enum><header>Tangible property</header><text>For purposes of this chapter—</text>
<paragraph id="H8C865447304547B69D5304F70300D130"><enum>(1)</enum><header>In
general</header><text>The supply of tangible property
is made in connection with the United States if—</text><subparagraph id="idEE5223BE34A747FA9B0F4CF9E51343D8"><enum>(A)</enum><text>the property is delivered or made available to the recipient in the United
States, or</text>
</subparagraph><subparagraph id="id45AA197EFBA94DA79370A6A58CFFD964"><enum>(B)</enum><text>the property is assembled in or removed from any location in the United States.</text></subparagraph></paragraph><paragraph id="H53CA14DD1CEC4A61BD83B32E58B1E7C4"><enum>(2)</enum><header>Real
property</header><text>The supply of real property is made in connection with the United States if the real
property is located in the United States.</text>
</paragraph></subsection><subsection id="HA60E6A08BC7A4BD38814F2727FFF2054"><enum>(b)</enum><header>Services, intangible property, and other supplies</header><text>For purposes of this chapter, the supply of anything other than tangible property or real property
is made in
connection with the United States if—</text><paragraph id="id0054387248E64A46B11725AD20072399"><enum>(1)</enum><text>the supply is used, performed, or otherwise
done in the United States, or</text></paragraph><paragraph id="id0574D8E8B91E43D38B0E77412C2B7185"><enum>(2)</enum><text>the supply is provided through a trade or business in the United States.</text></paragraph></subsection></section><section id="id9FD19B0E54EE4AA8AE4E8593F09CC7A2"><enum>3913.</enum><header>Exempt supply</header><subsection id="id0660C5DED17540ACB431C293EE3B0AF9"><enum>(a)</enum><header>In general</header><text>An exempt supply shall not be subject to tax under this chapter.</text></subsection><subsection id="idEF883F58AEA74C459ABE1EB5799F44E4"><enum>(b)</enum><header>Exempt supply</header><text>For purposes of this chapter—</text><paragraph id="idACED6F4D23A34A55A71F6B4953FB3C0C"><enum>(1)</enum><header>In general</header><text>The term <term>exempt supply</term> means—</text><subparagraph id="id5C1A3B51D1214C5484A128C80F497E88"><enum>(A)</enum><text>the rental or leasing of residential real property,</text></subparagraph><subparagraph id="id2EE3E1CFB2864341A0E83A6956887946"><enum>(B)</enum><text>any sale of qualified residential real property,</text></subparagraph><subparagraph id="id7051108121294EBE8327D6B5DB14BB4A"><enum>(C)</enum><text>any financial supply, and</text></subparagraph><subparagraph id="id636D1C9B10BB4F18A8C51AFBFD97212D"><enum>(D)</enum><text>any taxable supply (or category of such supplies) treated as an exempt supply under section
3932(b).</text></subparagraph></paragraph><paragraph id="id97F8BAB34B1E4A3EA34A94021487B207"><enum>(2)</enum><header>Qualified residential real property</header><text>For purposes of paragraph (1), the term <term>qualified residential real property</term> means residential real property—</text><subparagraph id="idBC76F5DAAD414F97BD08C5A4A8D1C5B4"><enum>(A)</enum><text>which—</text><clause id="id899389DC480D4F878AF02D68523AFCC3"><enum>(i)</enum><text>has previously been sold as residential real property, or</text></clause><clause id="id7645603481594025924DC9FD9FC82558"><enum>(ii)</enum><text>has been continuously rented for 5 years or more, and</text></clause></subparagraph><subparagraph id="id6C9C60115467424BAE6D4E74622771DF"><enum>(B)</enum><text>to which substantial renovations have not been made after the date of the enactment of this
chapter.</text></subparagraph></paragraph></subsection></section></subchapter><subchapter id="H0021E2DF168941F2B3A4A6C0970881FE"><enum>C</enum><header>Credit against tax</header>
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 3916. Credit against
tax.</toc-entry>
</toc>
<section id="HB2FE14B3C9CC462DBC3386275B899723"><enum>3916.</enum><header>Credit against
tax</header>
<subsection id="H37E358DF5C1842A5924CC15960535E06"><enum>(a)</enum><header>General
rule</header><text>There shall be allowed as a credit against the aggregate amount of tax imposed
by section 3901 with respect to all taxable supplies made by the
taxpayer during the taxable period an amount equal
to the aggregate amount of tax
imposed by section 3901 on creditable acquisitions of the taxpayer during
such taxable period.</text></subsection><subsection id="id23A3796C27EA497AB250A412489B5C44"><enum>(b)</enum><header>Creditable acquisitions</header><text>For purposes of this chapter, the term <term>creditable acquisition</term> means the acquisition or receipt of any supply—</text><paragraph id="id62CB5607CD584B57A652378A6695FBC3"><enum>(1)</enum><text>which was subject to tax under section 3901 at the time it was provided to the taxpayer,</text>
</paragraph><paragraph id="id3A6F450DBBE74C3CA384A0F408CEF92C"><enum>(2)</enum><text>which was used by the taxpayer—</text><subparagraph id="idF094F3480A89423C8E31B420A08904FF"><enum>(A)</enum><text display-inline="yes-display-inline">in the course of carrying on a trade or business,</text></subparagraph><subparagraph id="id0A3275DF4B62418BA606C4EFF6B3D2EC"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a taxpayer exempt from tax under section 501(a), in furtherance of the
activities related to the purpose or function constituting the basis of
the exemption under section 501, or</text>
</subparagraph><subparagraph id="id9DCFA151778547A8B12B8E220FCAF814"><enum>(C)</enum><text>in the case of a State, an Indian tribal government, a possession of the United States, or any
political subdivision of any
of the foregoing, or the United States or the District of Columbia, in
carrying out any activity that is not an essential governmental function,
and</text></subparagraph></paragraph><paragraph id="id6A5519FDBC944562A086F683D3A79A37"><enum>(3)</enum><text>which was not used by the taxpayer to make an exempt supply.</text></paragraph></subsection><subsection commented="no" id="HAD3EAF01AAA74C33B38055E849F162EC"><enum>(c)</enum><header>Exempt
supplies, etc</header><text>If supplies are used partly for a use described in subsection (b)(2) and partly for
another use, the
credit shall be allowable only with respect to the supplies used
as described in subsection (b)(2).</text></subsection><subsection commented="no" id="H51C62D339C7A43AF8729B2955EC2F3B1"><enum>(d)</enum><header>Excess credit
treated as overpayment</header>
<paragraph commented="no" id="H44C690D8AE894258AB60033763C82613"><enum>(1)</enum><header>In
general</header><text>If for any taxable period the amount of the
credit allowable by subsection (a) exceeds the aggregate amount of
the tax
imposed by section 3901 for such period, such excess shall be
treated as an
overpayment of the tax imposed by section 3901.</text>
</paragraph><paragraph commented="no" id="H3AFDD661B2664B8BBBD06E51F58D46F4"><enum>(2)</enum><header>Time when
overpayment arises</header><text>Any overpayment under paragraph (1) for any
taxable period shall be treated as arising on the later of—</text>
<subparagraph commented="no" id="HBD66368B9B664E0BA2D9257325D0E988"><enum>(A)</enum><text>the due date for
the return for such period, or</text>
</subparagraph><subparagraph commented="no" id="H32B6F3315B7C40E0B3D40051EB98349E"><enum>(B)</enum><text>the date on which
the return is filed.</text>
</subparagraph></paragraph></subsection></section></subchapter><subchapter id="HA19E8658044A48EE99C67E3865E2C7D5"><enum>D</enum><header>Administration</header>
<toc><toc-entry idref="HB9E341A187E84F09AB5534BE1AA8DA" level="section">Sec. 3921. Provider liable for tax.</toc-entry>
<toc-entry idref="H4201E4FAFAA3485BA08BF03F83061455" level="section">Sec. 3922. Tax invoices.</toc-entry>
<toc-entry idref="H29B5DCD713E14EFEAFCFAFACA9502473" level="section">Sec. 3923. Time for filing return and claiming credit; deposits of tax.</toc-entry>
<toc-entry idref="H87563A07F654498EBFBF840072EB00" level="section">Sec. 3924. Treatment of related businesses, etc.</toc-entry>
<toc-entry idref="id225C5ED46CFB4EE49EDF37B31A82CA85" level="section">Sec. 3925. Reports.</toc-entry>
<toc-entry idref="H30596EE46391452384A3E69D10070084" level="section">Sec. 3926. Regulations.</toc-entry>
</toc>
<section id="HB9E341A187E84F09AB5534BE1AA8DA"><enum>3921.</enum><header>Provider liable
for tax</header><subsection id="idF12F2B389A924B96BBCFE374BF5EEDA1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in subsection (b), the person providing the supply shall be liable for the tax
imposed by section
3901.</text>
</subsection><subsection id="id59838425DCDB4867BD3C1580F46557AC"><enum>(b)</enum><header>Special rule for imports</header><text>The person receiving the supply shall be liable for the tax imposed under section 3901—</text><paragraph id="idA01C4CB79B4742C69D4A89A74FC6F4D4"><enum>(1)</enum><text>in the case of any taxable supply described in section 3911(a)(1), and</text></paragraph><paragraph id="id27495D209F2245CB8E36AF709DC98D47"><enum>(2)</enum><text>in the case of any taxable supply which is not a supply of tangible property and which is—</text><subparagraph id="idBDE36938C97644B5B16CC0C8D94EFD34"><enum>(A)</enum><text>performed or otherwise done outside the United States,</text></subparagraph><subparagraph id="id9F8814F0F2A747939015DBB1781820A8"><enum>(B)</enum><text>used in the United States, and</text></subparagraph><subparagraph commented="no" id="idF30CEAE1452B4B42B29DDADA96F9F7F9"><enum>(C)</enum><text>acquired for use—</text><clause commented="no" id="id8C69EE9FC1C94487848E450E32E48FFC"><enum>(i)</enum><text display-inline="yes-display-inline">in carrying on a trade or business in the United States,</text></clause><clause commented="no" id="id8F79667EA2884C97A357492D6BB33752"><enum>(ii)</enum><text display-inline="yes-display-inline">by an organization exempt from tax under section 501(a), in furtherance of activities related to
the
purpose or function constituting the basis of
its exemption under section 501, or</text>
</clause><clause commented="no" id="id54A57E27A107416886440F9A7C6E99D7"><enum>(iii)</enum><text>by a State, an Indian tribal government, a possession of the United States, or any political
subdivision of any
of the foregoing, or the United States or the District of Columbia, in
carrying out any activity that is not an essential governmental function.</text></clause></subparagraph></paragraph></subsection></section><section id="H4201E4FAFAA3485BA08BF03F83061455"><enum>3922.</enum><header>Tax
invoices</header>
<subsection id="HCA9D9E093512443EA731B330F900CD6E"><enum>(a)</enum><header>In general</header><paragraph id="id2038255E63894AE8850C416EB6F802AA"><enum>(1)</enum><header>Supplies made in connection with the United States</header><text>Except as otherwise provided in this subsection, any person providing a taxable
supply shall give the
recipient a tax invoice with respect to
such
supply.</text></paragraph><paragraph id="idA69FEC2B23FD4B308F820E9DCABC4B77"><enum>(2)</enum><header>Certain services performed outside the United States</header><text>In the case of any taxable supply described in section 3921(b)(2), paragraph (1) shall not apply
and the person receiving the taxable supply shall
generate a tax invoice with respect to such supply.</text></paragraph><paragraph id="idBC943B390A9145A0949ADBD3F5422326"><enum>(3)</enum><header>Imports</header><text>In the case of any taxable supply described in section 3911(a), the Secretary, in consultation with
the Commissioner of Customs and Border Protection, shall promulgate
regulations governing the provision of tax invoices.</text></paragraph></subsection><subsection id="H7336B7619C6642D090698767D0278F45"><enum>(b)</enum><header>Content of
invoice</header><text>The tax invoice required by subsection (a) with respect
to any supply shall set forth—</text>
<paragraph id="H22D1D20141CD4D8FBFE86FC68F08AA43"><enum>(1)</enum><text>the name and, in the case of an invoice under subsection (a)(1),
identification number of the provider,</text>
</paragraph><paragraph id="H164CFDB9146C4810A96EC4D28300B204"><enum>(2)</enum><text>the name of the
recipient,</text>
</paragraph><paragraph id="id016DBB1F8E854317A88AF2747958FF4D"><enum>(3)</enum><text>the date of the taxable supply,</text></paragraph><paragraph id="id1925ABB8A1244209B260CA1F53FFC8D0"><enum>(4)</enum><text>the taxable amount with respect to the taxable supply,</text></paragraph><paragraph id="H22E1280CC9D24C7394C200107704B6C8"><enum>(5)</enum><text>the amount of the
tax imposed by section 3901, and</text>
</paragraph><paragraph id="H5DEDCD037C394799A5DC8BD4D7334509"><enum>(6)</enum><text>such other
information as may be prescribed by regulations.</text>
</paragraph></subsection><subsection id="H98A22C118517459DB2CCC4C72C0049D8"><enum>(c)</enum><header>No credit
without invoice</header>
<paragraph id="H4C09548BFE7A49959E205E4DC190E66"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2) or (3), a taxpayer
may claim a credit with respect to a creditable acquisition only if
the
taxpayer—</text>
<subparagraph id="H35BB385C8A0546AA845392D8923ECBD1"><enum>(A)</enum><text>has in the taxpayer's possession a
tax invoice
which meets the
requirements of this section, and</text>
</subparagraph><subparagraph id="HA225803396F740C980BB945718C70953"><enum>(B)</enum><text>is named as the
recipient of the supply in such invoice.</text>
</subparagraph></paragraph><paragraph id="H3CEB3EEA85954FDFB3C30090E2F8FE42"><enum>(2)</enum><header>Employees or
other agents named in invoices</header><text>To the extent provided in
regulations, the naming of an employee or other agent of the
recipient of the supply shall be
treated as the naming of the recipient.</text>
</paragraph><paragraph id="H879916DB793F49DFAB475F5C902E3EBF"><enum>(3)</enum><header>Waiver of
invoice requirement in certain cases</header><text>To the extent provided in
regulations, paragraph (1) shall not apply—</text>
<subparagraph id="H756DABAF84FD4FFEB620F11D6C3D2FE7"><enum>(A)</enum><text>where the
taxpayer can demonstrate that the failure to receive or
to
have in the taxpayer’s possession a tax invoice was without fault
on the taxpayer's part, or</text>
</subparagraph><subparagraph id="HD45EB2A4DA6C4396986BD673F81EB74B"><enum>(B)</enum><text>to a taxable
supply (or category of supplies) where—</text>
<clause id="HBD64493A789A43DDA81ED4BC4DD6AC71"><enum>(i)</enum><text>the amount
involved is de minimis, or</text>
</clause><clause id="HB58566A6528A4983803DDB931D839984"><enum>(ii)</enum><text>the information
required by subsection (b) can be reliably established by sampling
or by
another method and can be adequately documented.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H8FD37273A3264711A56BA6A7EED758D6"><enum>(d)</enum><header>Time for
furnishing invoice</header><text>Any invoice required to be furnished by
subsection (a) with respect to any supply shall be furnished
not later
than 15 business days after the tax point for such supply.</text>
</subsection></section><section id="H29B5DCD713E14EFEAFCFAFACA9502473"><enum>3923.</enum><header>Time for
filing return and claiming credit; deposits of tax</header>
<subsection id="H58060EDA6C8A492AA6AB26DA2CE8CFE8"><enum>(a)</enum><header>Filing
return</header><text>Before the last day of the fourth week (third week, in the case of any taxpayer to which subsection
(c)(2) applies) after the close of each taxable period, each
person liable for tax under this chapter shall
file a return of the tax imposed by section 3901 on taxable
supplies having
a tax point within such taxable period.</text>
</subsection><subsection commented="no" id="H46A6E40F54ED4F41842BCF2F64273926"><enum>(b)</enum><header>Credit allowed
for taxable period in which recipient receives invoice</header>
<paragraph commented="no" id="H9EEE1F31B8A641E58BD3762960909728"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), a credit allowable
by section 3916 with respect to a supply may be allowed only
for the first
taxable period by the close of which the taxpayer—</text>
<subparagraph commented="no" id="H4BD338CBCFE44B3F8C3B79C1828CB66D"><enum>(A)</enum><text>has paid or
accrued amounts properly allocable to the tax imposed by section
3901 with
respect to such supply, and</text>
</subparagraph><subparagraph commented="no" id="HCEF28472E22C458F00542300A2E92BC"><enum>(B)</enum><text>has a tax invoice
(or equivalent) with respect to such supply.</text>
</subparagraph></paragraph><paragraph id="H5C5AA9185A954B1F98DDE685F5A022BC"><enum>(2)</enum><header>Use for later
period</header><text>Under regulations, a credit allowable by section 3916 may
be allowed for a period after the period set forth in paragraph
(1).</text>
</paragraph></subsection><subsection id="H0C7C9CE25D5F4428B4AF29D5BD6BC8F0"><enum>(c)</enum><header>Taxable
period</header><text>For purposes of this chapter—</text>
<paragraph id="H4F6AEE2231CE4337BD9573118133E1A9"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the term <term>taxable period</term> means a calendar
quarter.</text>
</paragraph><paragraph id="H1DF3F968D17B4724837B73AAE1E315FE"><enum>(2)</enum><header>Monthly period for certain taxpayers</header><subparagraph id="idDCC278C2D6BF41B5A99DB8A6797A5A99"><enum>(A)</enum><header>In general</header><text>In the case of a taxpayer who makes taxable supplies for any month in excess of $20,000,000, the
term <term>taxable period</term> means a calendar month.</text>
</subparagraph><subparagraph commented="no" id="H5F133D36DF3B4C7D8C4904BA49B574F9"><enum>(B)</enum><header>Election of
1-month period</header><text>If the taxpayer so elects, the term <term>taxable
period</term> means a calendar month.</text>
</subparagraph></paragraph></subsection><subsection id="HB6A01E6F7D4D434FB25922008FCA4F93"><enum>(d)</enum><header>Tax point</header><text>For purposes of this chapter—</text>
<paragraph id="HE5ADC68F15A34DECBBC39842BF52B8C8"><enum>(1)</enum><header>Chapter
<enum-in-header>1</enum-in-header> rules with respect to provider
govern</header><text>Except as provided in paragraph (2), the tax point for any supply is the earlier of—</text>
<subparagraph id="HC04CF3E12B0C4FD2A6A05F138FE76881"><enum>(A)</enum><text>the time (or
times) when any income from the provision of the supply should be
treated by the
provider as
received or accrued (or any loss should be taken into account by
the seller)
for purposes of chapter 1, or</text>
</subparagraph><subparagraph id="H72B45B447BB241519E655DD1285856AC"><enum>(B)</enum><text>the time (or
times) when the provider receives payment for the sale.</text>
</subparagraph></paragraph><paragraph id="H0E7B13F0834440D4AAE139960095E6F7"><enum>(2)</enum><header>Imports</header><text>In
the case of the importing of property, the tax point is when the
property is
entered, or withdrawn from warehouse, for consumption in the United
States.</text>
</paragraph></subsection><subsection id="H81C30DD15A5F44B58129CCC570450094"><enum>(e)</enum><header>Monthly deposits
required</header><text>To the extent provided in regulations, monthly deposits
may be required of the estimated liability for any taxable period
for the tax
imposed by section 3901.</text>
</subsection></section><section commented="no" id="H87563A07F654498EBFBF840072EB00"><enum>3924.</enum><header>Treatment of
related businesses, etc</header>
<text display-inline="no-display-inline">For purposes of this chapter, to
the extent provided in regulations, the taxpayer may elect—</text><paragraph commented="no" id="H61751C9A77344AF3A80061254CA0F0B7"><enum>(1)</enum><text>to treat as 1
person 2 or more businesses which may be treated under
section 52(b) as
1 employer, and</text>
</paragraph><paragraph commented="no" id="H5D0D952CE9574B0D88678292F460AEF"><enum>(2)</enum><text>to treat as
separate persons separate divisions of the same business.</text></paragraph></section><section commented="no" id="id225C5ED46CFB4EE49EDF37B31A82CA85"><enum>3925.</enum><header>Reports</header><text display-inline="no-display-inline">The Secretary shall submit to Congress semi-annual reports on the implementation and administration
of this chapter, including the amount of revenue collected from the tax
imposed under this chapter and estimates of the revenue to be collected
from such tax for future period.</text>
</section><section id="H30596EE46391452384A3E69D10070084"><enum>3926.</enum><header>Regulations</header><text display-inline="no-display-inline">The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of this
chapter.</text>
</section></subchapter><subchapter id="H95A02BC88A06449E977E1C09C81866BC"><enum>E</enum><header>Definitions and
Special Rules</header>
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 3931. Definitions.</toc-entry>
<toc-entry level="section">Sec. 3932. Special rules.</toc-entry>
</toc>
<section id="HE51F56B745AD449D91DCDDD7ABC70014"><enum>3931.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this chapter—</text>
<paragraph id="H4D5D6B8B67D54059A6789DC76ED4EC0"><enum>(1)</enum><header>Business</header><text>The term <term>business</term> includes—</text>
<subparagraph id="H47AB065D61904371ACFC4E00BD8E7316"><enum>(A)</enum><text>a trade,
and</text>
</subparagraph><subparagraph id="HD1C1F138BD0A4FDEB2222457F5FCE003"><enum>(B)</enum><text>an activity
regularly carried on for profit.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8DF393DF70E544CCAEE90CA7F293469E"><enum>(2)</enum><header display-inline="yes-display-inline">Business
Day</header><text display-inline="yes-display-inline">The term <term>business
day</term> means any day other than Saturday and Sunday and other than a legal
holiday (within the meaning of section 7503).</text></paragraph><paragraph id="H7AB5D03BE4E04A0AA59C55506EA6D8C5"><enum>(3)</enum><header>Employee</header><text>The term <term>employee</term> has the meaning such
term has for purposes of chapter 24.</text>
</paragraph><paragraph id="id2F9E65D588714494BD9CA97260FA2332"><enum>(4)</enum><header>Financial supplies</header><text>The term <term>financial supplies</term> means the provision, acquisition, or disposal of any of the following: a bank account, a debit or
credit arrangement, a mortgage, a superannuation fund, an annuity,
insurance, a financial guarantee, an indemnity, currency, securities, or
derivatives.</text></paragraph><paragraph id="H816517D2FC05451D878EF2B6C2F06E34"><enum>(5)</enum><header>Person</header><text>The term <term>person</term> includes any
governmental entity.</text>
</paragraph><paragraph id="id00D3CDE72A7141E8BCA7C303608E45EF"><enum>(6)</enum><header>Provide; provider</header><text>The term <term>provide</term>, when used in reference to taxable supplies (other than in section 3911(a)(2)), includes the
importation of property and the term <term>provider</term> includes the importer of property.</text></paragraph><paragraph id="HA9CCA44AA0AC40C6AB002B43FA555100"><enum>(7)</enum><header>United
States</header><text>The term <term>United
States</term>, when used in a geographical sense, includes a Commonwealth and
any possession of the United States.</text>
</paragraph></section><section commented="no" id="HE52BB2ADB0054E61BEA87267733503F7"><enum>3932.</enum><header>Special
rules</header>
<subsection commented="no" id="H60B33E02DEEC48028D432E67D4E8A9D1"><enum>(a)</enum><header>Coordination
with subtitle <enum-in-header>A</enum-in-header></header><text>For purposes of
subtitle A—</text>
<paragraph commented="no" id="H36C0CDFDC0D94AF382CED14F70B832CA"><enum>(1)</enum><header>Treatment of
credit</header><text>Any credit allowable to a taxpayer under section 3916
which is attributable to any supply shall be treated
as a
reduction in the amount paid or incurred by the taxpayer for such
supply.</text>
</paragraph><paragraph commented="no" id="H952EED3778BB4363A4A12513E197664"><enum>(2)</enum><header>Amount of
deduction for tax</header><text>The amount allowable as a deduction for the tax
imposed by section 3901 shall be determined without regard to any
credit
allowable under section 3916.</text>
</paragraph><paragraph commented="no" id="H7CC811DD671E4FBDABEA91CF2F1F88A"><enum>(3)</enum><header>Computation of
percentage depletion</header><text>For purposes of sections 613 and
613A—</text>
<subparagraph commented="no" id="HF2374DEC377E471C80BB567778FCF04C"><enum>(A)</enum><text>gross income shall
be reduced by the amount of the tax imposed by section 3901, and</text>
</subparagraph><subparagraph commented="no" id="H9D48437C2F824A3BB78C620057ACCF57"><enum>(B)</enum><text>taxable income
shall be determined without regard to any deduction allowed for
such
tax.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HB273ADE5A547455785099D9600D2E8D"><enum>(b)</enum><header>Authority to zero
rate de minimis supplies, etc</header><text>The Secretary may prescribe
regulations treating as an exempt supply any taxable
supply (or category of such supplies) where—</text>
<paragraph commented="no" id="H0F15239E3DF3400CBB5D00D6B83B9B5B"><enum>(1)</enum><text>the amount
involved is de minimis, or</text>
</paragraph><paragraph commented="no" id="H4D12FB90C1994D1C9C8482BFE8D2C5EE"><enum>(2)</enum><text>the revenue raised
by taxing the supply is not sufficient to justify the
administrative and
other costs involved in the payment and collection of the tax.</text>
</paragraph></subsection></section></subchapter></chapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H93000E444AC84048B82382AF9E00CC06"><enum>(b)</enum><header>Clerical
Amendment</header><text>The table of chapters for subtitle D is amended by inserting before the item relating to
chapter 31 the following:</text>
<quoted-block id="HA3CDCC5E1F934EA39E14CF779D4B5704" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="chapter">Chapter 30. Progressive consumption
tax</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H411F4DCE29C448F1B20620C6233F2827"><enum>(c)</enum><header>Effective
Date</header><text>The amendments made by this section shall apply to
supplies provided after December 31, 2015.</text></subsection></section><enum>II</enum><header>Individual and corporate tax reform</header><subtitle id="id3EEDF5B1607545398555E35C3FC842B8" style="OLC"><enum>A</enum><header>Individual income tax reforms</header><section id="id3C507E076CCB4BE9BB31F96DBDECE101"><enum>201.</enum><header>Individual income tax rate reductions</header><subsection id="idA524BF1ADEB44428B9F311502032EA50"><enum>(a)</enum><header>In general</header><paragraph id="id302D804D2F69402C9E47AE611AF65BC2"><enum>(1)</enum><header>Married individuals filing joint returns and surviving spouses</header><text>Subsection (a) of section 1 is amended by striking the table and inserting the following:</text><quoted-block display-inline="no-display-inline" id="id3F7A2417B01B439EB5AD5939ADC3C96A" style="OLC"><table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.4" table-template-name="Tax Rate" table-type="Leaderwork, Tax"><tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="162pts" min-data-value="140"></colspec><colspec coldef="txt" colname="column2" colsep="0" colwidth="162pts" min-data-value="140"></colspec><thead><row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>If taxable income is:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>The tax is:</bold></entry></row></thead><tbody><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Not over $100,000</entry><entry align="right" colname="column2" rowsep="0">15 percent of taxable income.</entry></row><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Over $100,000 but not over $500,000</entry><entry align="right" colname="column2" rowsep="0">$15,000, plus 25 percent of the excess over $100,000.</entry></row><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Over $500,000</entry><entry align="right" colname="column2" rowsep="0">$115,000, plus 28 percent of the excess over $500,000.</entry></row></tbody></tgroup></table><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id1DF02C90A85046A9B46E30E4E2FD6B62"><enum>(2)</enum><header>Heads of households</header><text>Subsection (b) of section 1 is amended by striking the table and inserting the following:</text><quoted-block display-inline="no-display-inline" id="id03764D4EFB114EE2A079D70D8B6DAF5C" style="OLC"><table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.4" table-template-name="Tax Rate" table-type="Leaderwork, Tax"><tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="162pts" min-data-value="140"></colspec><colspec coldef="txt" colname="column2" colsep="0" colwidth="162pts" min-data-value="140"></colspec><thead><row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>If taxable income is:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>The tax is:</bold></entry></row></thead><tbody><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Not over $50,000</entry><entry align="right" colname="column2" rowsep="0">15 percent of taxable income.</entry></row><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Over $50,000 but not over $250,000</entry><entry align="right" colname="column2" rowsep="0">$7,500, plus 25 percent of the excess over $50,000.</entry></row><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Over $250,000</entry><entry align="right" colname="column2" rowsep="0">$57,500, plus 28 percent of the excess over $250,000.</entry></row></tbody></tgroup></table><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id865520BD75C944A18C862B759CE90ACD"><enum>(3)</enum><header>Unmarried individuals (other than surviving spouses and heads of households)</header><text>Subsection (c) of section 1 is amended by striking the table and inserting the following:</text><quoted-block display-inline="no-display-inline" id="id4B67BC455CEE486F82122BBA2544E01B" style="OLC"><table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.4" table-template-name="Tax Rate" table-type="Leaderwork, Tax"><tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="162pts" min-data-value="140"></colspec><colspec coldef="txt" colname="column2" colsep="0" colwidth="162pts" min-data-value="140"></colspec><thead><row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>If taxable income is:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>The tax is:</bold></entry></row></thead><tbody><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Not over $50,000</entry><entry align="right" colname="column2" rowsep="0">15 percent of taxable income.</entry></row><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Over $50,000 but not over $250,000</entry><entry align="right" colname="column2" rowsep="0">$7,500, plus 25 percent of the excess over $250,000.</entry></row><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Over $250,000</entry><entry align="right" colname="column2" rowsep="0">$57,500, plus 28 percent of the excess over $250,000.</entry></row></tbody></tgroup></table><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="idE7483E9512BD439CA2F01FC584531208"><enum>(4)</enum><header>Married individuals filing separate returns</header><text>Subsection (d) of section 1 is amended by striking the table and inserting the following:</text><quoted-block display-inline="no-display-inline" id="idB029AE174FDA461B84ECC55FDCF49A4B" style="OLC"><table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.4" table-template-name="Tax Rate" table-type="Leaderwork, Tax"><tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="162pts" min-data-value="140"></colspec><colspec coldef="txt" colname="column2" colsep="0" colwidth="162pts" min-data-value="140"></colspec><thead><row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold>If taxable income is:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>The tax is:</bold></entry></row></thead><tbody><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Not over $50,000</entry><entry align="right" colname="column2" rowsep="0">15 percent of taxable income.</entry></row><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Over $50,000 but not over $250,000</entry><entry align="right" colname="column2" rowsep="0">$7,500, plus 25 percent of the excess over $250,000.</entry></row><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Over $250,000</entry><entry align="right" colname="column2" rowsep="0">$57,500, plus 28 percent of the excess over $250,000.</entry></row></tbody></tgroup></table><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idBA811C231AEA490F97AE9B93800E151F"><enum>(b)</enum><header>Conforming amendments relating to cost-of-Living adjustment</header><paragraph id="id08002B755F254A65AC5398672F6DD9D1"><enum>(1)</enum><header>In general</header><text>Paragraph (3) of section 1(f) is amended by inserting <quote>, except as provided in paragraph (7),</quote> after <quote>for any calendar year</quote>.</text></paragraph><paragraph id="id676E993416304AE89FBAE3B3D5F0F476"><enum>(2)</enum><header>Updated cost-of-living adjustment for new rates</header><text>Section 1(f) is amended by striking paragraphs (7) and (8) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="idC6F2E83452754DAD9480CC1A6843AF3E" style="OLC"><paragraph id="id8EC689D7B53649AB96FF39857FFC83CE"><enum>(7)</enum><header>Cost-of-living adjustment for years after 2015</header><subparagraph id="id38AF758E8B974C0AA94837BD69FF66A5"><enum>(A)</enum><header>Calendar year 2016</header><text>In prescribing the tables under paragraph (1) which apply in lieu of the tables contained in
subsections (a), (b), (c), and (d) with respect to taxable years beginning
in calendar year 2016, the Secretary shall make no adjustment to the
dollar amounts in any such table.</text></subparagraph><subparagraph id="idD6BD2FB99D48433FAC1E7F196A893DFA"><enum>(B)</enum><header>Later calendar years</header><text>In prescribing tables under paragraph (1) which apply in lieu of the tables contained in
subsections (a), (b), (c), and (d) with respect to taxable years beginning
after December 31, 2016, the cost-of-living adjustment used in making
adjustments to the dollar amounts in such tables
shall be determined under paragraph (3) by substituting <quote>2015</quote>
for <quote>1992</quote>.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id76A6E84FED6F40ECB3C59D48A9F6009F"><enum>(3)</enum><header>Conforming amendments</header><subparagraph id="id1C8E0DAF63A74CC8B1EA53217871F6D2"><enum>(A)</enum><text>Paragraph (2) of section 1(f) is amended—</text><clause id="id9E1A75ED25C24C989E644DB7960BAB9B"><enum>(i)</enum><text>by striking <quote>paragraph (8)</quote> in subparagraph (A) and inserting <quote>paragraph (7)(A)</quote>, and</text></clause><clause id="idF5513AF355ED4C3C8BA7902D01D5FCC1"><enum>(ii)</enum><text>by striking <quote>by adjusting</quote> in subparagraph (C) and inserting <quote>except as provided in paragraph (7)(A), by adjusting</quote>.</text></clause></subparagraph><subparagraph id="idF050AE79CD7C479FBD69E52156A84313"><enum>(B)</enum><text>The heading of subsection (f) of section 1 is amended by striking <quote><header-in-text level="subsection" style="OLC">Phaseout of marriage penalty in 15-percent bracket; adjustments</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Adjustments</header-in-text></quote>.</text></subparagraph></paragraph></subsection><subsection id="id712581BB30D447A399122AE2D6BEA041"><enum>(c)</enum><header>Conforming amendment relating to rates</header><text>Section 1 is amended by striking subsection (i).</text></subsection><subsection id="idBF6858CFD7434E85841A34A58A1F0210"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text></subsection></section><section id="idD5768FF7CAA14B1CBC18F1DF6406CA83"><enum>202.</enum><header>Family allowance amounts</header><subsection id="id62C57DD6AE3A4FB48204ECE9D0366FDE"><enum>(a)</enum><header>In general</header><text>Section 63 is amended to read as follows:</text><quoted-block act-name="" id="idAA2853BFD9054DFABC7327C6EC3C2248" style="OLC"><section id="idDD9D57175BDD49EB875E225BFB5EA566"><enum>63.</enum><header>Taxable income defined</header><subsection id="id56B6222EFFF8473D99153BAC7347866D"><enum>(a)</enum><header>In general</header><text>For purposes of this subtitle, the term <term>taxable income</term> means adjusted gross income minus—</text><paragraph id="id470BE95FEA33444595831911B14CA4CB"><enum>(1)</enum><text>the deductions allowed by this chapter (other than those taken into account in determining adjusted
gross income), and</text></paragraph><paragraph id="id9C095228D94242BEB3C809E948E23BC5"><enum>(2)</enum><text>the family allowance amount.</text></paragraph></subsection><subsection id="id69A3B7EA84674B349392219DBAE38257"><enum>(b)</enum><header>Family allowance</header><text>For purposes of this subtitle—</text><paragraph id="id677A2337333747269007818CF2CE68C8"><enum>(1)</enum><header>In general</header><text>The family allowance amount with respect to a taxpayer shall be determined in accordance with the
following table:</text><table align-to-level="section" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Generic: 1 text, 1 num" table-type=""><tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec coldef="txt" colname="column1" colwidth="247pts" min-data-value="200"></colspec><colspec coldef="fig" colname="column2" colwidth="380.81pt" min-data-value="14"></colspec><thead><row><entry align="left" colname="column1" morerows="0" namest="column1"><linebreak></linebreak><linebreak></linebreak><bold>If the taxpayer is:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2"><bold>The family<linebreak></linebreak> allowance <linebreak></linebreak>amount is:</bold></entry></row></thead><tbody><row><entry align="left" colname="column1" stub-definition="txt-ldr" stub-hierarchy="1"> Single or married filing separately</entry><entry align="right" colname="column2">$50,000</entry></row><row><entry align="left" colname="column1" stub-definition="txt-ldr" stub-hierarchy="1"> Married filing jointly or a surviving spouse</entry><entry align="right" colname="column2">$100,000</entry></row><row><entry align="left" colname="column1" stub-definition="txt-ldr" stub-hierarchy="1"> A head of a household</entry><entry align="right" colname="column2">$75,000.</entry></row></tbody></tgroup></table></paragraph><paragraph id="id2D0BA691E83F488083E01FC1100C107C"><enum>(2)</enum><header>Definitions</header><text>For purposes of this subsection—</text><subparagraph id="id3A443230B0E44BC391264DB0CB0CDDD7"><enum>(A)</enum><text>the term <term>single or married filing separately</term> means a taxpayer to whom subsection (c) or (d) of section 1 applies,</text></subparagraph><subparagraph id="idE74EEC1C81524F98A89224D019E2996C"><enum>(B)</enum><text>the term <term>married filing jointly or a surviving spouse</term> means a taxpayer to whom subsection (a) of section 1 applies, and</text></subparagraph><subparagraph id="id1DD078493A8047F7850E4ACEA5409CC3"><enum>(C)</enum><text>the term <term>head of a household</term> means a taxpayer to whom subsection (b) of section 1 applies.</text></subparagraph></paragraph><paragraph id="idC404B77CC66A4BBBA315057DF3927566"><enum>(3)</enum><header>Adjustment for inflation</header><text>In the case of any taxable year beginning after 2016, each of the dollar amounts in the table under
paragraph (1) shall be increased by an amount equal
to—</text><subparagraph id="id47EB1495CA1C4EC8B98A8C213289F069"><enum>(A)</enum><text>such dollar amount, multiplied by</text></subparagraph><subparagraph id="idD150DC03043040D69113C15700D67EA5"><enum>(B)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the
taxable year begins, by substituting <quote>calendar year 2015</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof.</text></subparagraph></paragraph></subsection><subsection id="id82DF48D5F56444FA8909F00092790EC2"><enum>(c)</enum><header>Cross references</header><paragraph id="id58A9B8E1F6684872A3FB3A2AF1D6CB56"><enum>(1)</enum><text>For deductions of estates and trusts in lieu of the family allowance amount, see section 642(b).</text></paragraph><paragraph id="idBAC9BDF04E3B4646913339DC8B2CFC04"><enum>(2)</enum><text>For calculation of family allowance relating to nonresident aliens, see section 873(b)(3).</text></paragraph><paragraph id="id63D5BF1DCF654E34A79E1247B45856F1"><enum>(3)</enum><text>For determination of marital status, see section 7703.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id9EE31EDFBB174B2497C82765C724BE5B"><enum>(b)</enum><header>Termination of personal exemptions</header><paragraph id="id283DA3B213CF4618A531483428062C61"><enum>(1)</enum><header>In general</header><text>Subsection (a) of section 151 is amended by inserting <quote>, for a taxable year beginning before January 1, 2016</quote> after <quote>In the case of an individual</quote>.</text></paragraph><paragraph id="idB232F94C237341BDB7F703E3EE580C46"><enum>(2)</enum><header>Identifying information required to treat individual as dependent</header><text>Section 152 is amended by adding at the end the following new subsection:</text><quoted-block act-name="" id="id3D8B7F119AF4412A81F4385D4286D165" style="OLC"><subsection id="id891AE712A43C4E79A9DB4D3A8233C84E"><enum>(g)</enum><header>Identifying information required</header><text>No individual shall be treated as a dependent of the taxpayer under this section for a taxable year
unless the taxpayer includes the TIN of such individual on the return of
tax for the taxable year.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id040E8665FEC046AA86C5A1B72934DEEB"><enum>(3)</enum><header>Conforming amendments</header><subparagraph id="id387228B826AE4EEC960A6719843AEDFB"><enum>(A)</enum><text>Section 2(a)(1)(B)(ii) is amended by striking <quote>of a dependent</quote> and all that follows and inserting <quote>of a dependent (as defined in section 152) who (within the meaning of section 152, determined
without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) is a
son, stepson, daughter, or stepdaughter of the taxpayer.</quote>.</text></subparagraph><subparagraph id="id3A4705A53AB949F48E3CC00E5601B843"><enum>(B)</enum><text>Section 2(b)(1)(A)(ii) is amended by striking <quote>if the taxpayer is entitled to a deduction for the taxable year for such person under section 151</quote> and inserting <quote>within the meaning of section 152</quote>.</text></subparagraph><subparagraph id="id679F62958F7246F287B2F6373BC00DED"><enum>(C)</enum><text>Section 2(b)(1)(B) is amended by striking <quote>if the taxpayer is entitled to a deduction for the taxable year for such father or mother under
section 151</quote> and inserting <quote>if such father or mother is a dependent of the taxpayer for the taxable year, within the meaning of
section 152</quote>.</text></subparagraph><subparagraph commented="no" id="id806E548545CA4264BFC1813C979BBF1D"><enum>(D)</enum><text>Section 36B(b)(3)(B) is amended—</text><clause commented="no" id="id5D4E52EBB0C840B0B4C1D9A96EFC9217"><enum>(i)</enum><text>by striking <quote>who is not allowed a deduction under section 151 for the taxable year with respect to a dependent</quote> in clause (ii)(I)(aa) and inserting <quote>with respect to whom no dependents are taken into account under section 152 for purposes of any
provision of this title for the taxable year</quote>, and</text></clause><clause commented="no" id="id0C5D20E012EA4D38B62BCA60C7399C26"><enum>(ii)</enum><text>by striking <quote>unless a deduction is allowed under section 151 for the taxable year with respect to a dependent
other than either spouse</quote> and inserting <quote>unless a dependent other than either spouse is taken into account under section 152 for purposes of
any provision of this title for the taxable year</quote>.</text></clause></subparagraph><subparagraph commented="no" id="id5A208FF5F4F7472ABED06E91411B0B0A"><enum>(E)</enum><text>Section 36B(c)(1)(D) is amended by striking <quote>with respect to whom a deduction under section 151 is allowable to another taxpayer</quote> and inserting <quote>who is taken into account as a dependent by another taxpayer under section 152 for purposes of any
provision of this title</quote>.</text></subparagraph><subparagraph commented="no" id="idEE4938C397B54E02BB3B58DC91EEAFB5"><enum>(F)</enum><text>Section 36B(d)(1) is amended by striking <quote>for whom the taxpayer is allowed a deduction under section 151 (relating to allowance of deduction
for personal exemptions)</quote> and inserting <quote>who is a dependent of the taxpayer under section 152</quote>.</text></subparagraph><subparagraph commented="no" id="id4FE3446782EC4F9AA8DA06995D0312C0"><enum>(G)</enum><text>Section 36B(e)(1) is amended by striking <quote>for whom a taxpayer is allowed a deduction under section 151 (relating to allowance of deduction
for personal exemptions)</quote> and inserting <quote>who is a dependent of the taxpayer under section 152</quote>.</text></subparagraph><subparagraph commented="no" id="id979C9C861A1849BFAF76DE10481AAC16"><enum>(H)</enum><text>Section 152(d)(1)(B) is amended by striking <quote>the exemption amount (as defined in section 151(d))</quote> and inserting <quote>the family allowance amount applicable to taxpayers who are single or married filing separately
under section 63(b)</quote>.</text></subparagraph><subparagraph commented="no" id="id1FDDFFAEA6AB4E028B1D30322BA8A9C8"><enum>(I)</enum><text>Section 152(f)(6)(B)(i) is amended by striking <quote>the deduction under section 151(c)</quote> and inserting <quote>the family allowance amount under section 63(b)</quote>.</text></subparagraph><subparagraph commented="no" id="id501E867B10E14E83BFDA419E6F32CBEF"><enum>(J)</enum><text>Part V of subchapter B of chapter 1 is amended by striking section 153.</text></subparagraph><subparagraph commented="no" id="id5BFBCE5241BB40919DDF7EA22123FAF0"><enum>(K)</enum><text>The table of sections for part V of subchapter B of chapter 1 is amended by striking the item
relating to section 153.</text></subparagraph><subparagraph commented="no" id="id4D5FA3C4B5174AD1BF72F926DC1F0A94"><enum>(L)</enum><text>Section 172(d)(3) is amended to read as follows:</text><quoted-block act-name="" id="id1D2FE8719D2847088833AF6518E8CA72" style="OLC"><paragraph id="id87E8ED021386498EB23646F35BE44F77"><enum>(3)</enum><header>Family allowance amount</header><text>Taxable income under section 63 shall be determined without regard to paragraph (2) of section
63(a), relating to the family allowance amount. No deduction in lieu of
the exclusion of such family allowance amount shall be allowed.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id6566FE93BD3A4B1E9FFCCFCFCA04939B"><enum>(M)</enum><text>Section 220(b)(6) is amended by striking <quote>with respect to whom a deduction under section 151 is allowable to another taxpayer</quote> and inserting <quote>who is taken into account as a dependent by another taxpayer under section 152 for purposes of any
provision of this title</quote>.</text></subparagraph><subparagraph commented="no" id="id4A03BF8A35E844129C666A1FE91B4EEF"><enum>(N)</enum><text>Section 223(b)(6) is amended by striking <quote>with respect to whom a deduction under section 151 is allowable to another taxpayer</quote> and inserting <quote>who is taken into account as a dependent by another taxpayer under section 152 for purposes of any
provision of this title</quote>.</text></subparagraph><subparagraph commented="no" id="idE0C94CDC4C7F49499ED1A87537E9FBF4"><enum>(O)</enum><text>Section 443(c) is amended by striking <quote>the exemptions allowed as a deduction under section 151 (and any deduction in lieu thereof) shall
be reduced to amounts which bear the same ratio to the full exemptions</quote> and inserting <quote>the family allowance amount under section 63 (and any deduction in lieu thereof) shall be reduced
to an amount which bears the same ratio to the full family allowance
amount</quote>.</text></subparagraph><subparagraph commented="no" id="id811250362937434FAD89F9A44A40A195"><enum>(P)</enum><text>Section 642(b)(2)(C)(i) is amended—</text><clause commented="no" id="id785AAE79E19740BB87806CC3C2C676DD"><enum>(i)</enum><text>by striking <quote>151(d)</quote> and inserting <quote>151(d) (as in effect for taxable years beginning before January 1, 2016)</quote>, and</text></clause><clause commented="no" id="id0DC3FF810AD84FF18CA387D8F4DD77E8"><enum>(ii)</enum><text>by striking <quote>151(d)(3)(C)(iii)</quote> in subclause (I) and inserting <quote>151(d)(3)(C)(iii) (as so in effect)</quote>.</text></clause></subparagraph><subparagraph commented="no" id="idD2A68CB5F8A74122808BCA860F28A0F1"><enum>(Q)</enum><text>Section 642(b)(3) is amended by striking <quote>the deductions allowed under section 151 (relating to deduction for personal exemption)</quote> and inserting <quote>the family allowance amount under section 63</quote>.</text></subparagraph><subparagraph commented="no" id="id65D354931B764FC3AD58AD93C9F58681"><enum>(R)</enum><text>Section 703(a) is amended—</text><clause commented="no" id="idCB758138AB5642C68918B1AD259C4FB2"><enum>(i)</enum><text>by striking <quote>and</quote> at the end of paragraph (1),</text></clause><clause commented="no" id="id50CB60BE79BF4FEFBFCCA915AD5E45C6"><enum>(ii)</enum><text>by striking subparagraph (A) of paragraph (2) and by redesignating subparagraphs (B), (C), (D),
(E), and (F) of such paragraph as subparagraphs (A), (B), (C), (D), and
(E),</text></clause><clause commented="no" id="id6BB369831B0B4810B2E7D12D499997BA"><enum>(iii)</enum><text>by striking the period at the end of paragraph (2)(F) and inserting <quote>, and</quote>, and</text></clause><clause commented="no" id="id5E5E89393DE0461981B531367429E6DE"><enum>(iv)</enum><text>by adding at the end the following new paragraph:</text><quoted-block act-name="" id="id553CB5BA2F014DC4B69B47F808C7927B" style="OLC"><paragraph id="id4F49737A07F7495D85BA3703EC681898"><enum>(3)</enum><text>taxable income under section 63 shall be determined without regard to paragraph (2) of section
63(a), relating to the family allowance amount.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="idBB9B911B0E2F48D5845B6C8FBDDED316"><enum>(S)</enum><text>Section 773(b) is amended—</text><clause commented="no" id="id16D74924E73B4F65A38C50EFDC916EE4"><enum>(i)</enum><text>by striking subparagraph (A) of paragraph (1) and by redesignating subparagraphs (B) and (C) of
such paragraph as subparagraphs (A) and (B), and</text></clause><clause commented="no" id="id1E6F18343B464B5AB8434F67EA1CB77B"><enum>(ii)</enum><text>by adding at the end the following new paragraph:</text><quoted-block act-name="" id="id41EF07D7D9574EF78C247DE3FFB8D5FE" style="OLC"><paragraph id="id3DD4477D21A94C8DA57BC59371ECB0AB"><enum>(4)</enum><header>Family allowance amount</header><text>Taxable income under section 63 shall be determined without regard to paragraph (2) of section
63(a), relating to the family allowance amount.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="id23BC1A3882004CE1B993BCEF893CB120"><enum>(T)</enum><text>Section 873(b) is amended—</text><clause commented="no" id="idAA066F887A00430D86CE591165BEDA5E"><enum>(i)</enum><text>by striking <quote>deductions</quote> in the matter preceding paragraph (1), and</text></clause><clause commented="no" id="id289CF0F637E347BDAE4FA75E4BA5A106"><enum>(ii)</enum><text>by striking paragraph (3) and inserting the following:</text><quoted-block act-name="" id="id31334350F85F4623AEE239B5C8E166C8" style="OLC"><paragraph id="idD1B85691037B4EE8AF57163D5793BB93"><enum>(3)</enum><header>Family allowance amount</header><text>The exclusion of the family allowance amount under section 63(a)(2), except that the taxpayer shall
be treated for purposes of section 63(b) as single or married filing
separately unless the taxpayer is a resident of a contiguous country or is
a national of the United States.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="id626F857AE493455FB8EDFBABF024D024"><enum>(U)</enum><text>The heading of section 873 is amended by striking <quote><header-in-text level="section" style="OLC">Deductions</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">Deductions and allowances</header-in-text></quote>.</text></subparagraph><subparagraph commented="no" id="idBCCE0254648E4C549058BF2D7FF2260D"><enum>(V)</enum><text>The item relating to section 873 in the table of sections for subpart A of part II of subchapter N
of chapter 1 is amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="idCDB7A1E089C94D4DB7D81849313F0DBD" style="OLC"><toc><toc-entry bold="off" level="section">Sec. 873. Deductions and allowances.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id32E1135EA179489AB1528C0ADD29D1A7"><enum>(W)</enum><text>Section 874(b) is amended by striking <quote>deduction for exemptions under section 151</quote> and inserting <quote>exclusion of the family allowance amount under section 63(a)(2)</quote>.</text></subparagraph><subparagraph commented="no" id="idBCDCF7DAB25A4292956DD1AD5CBDC61E"><enum>(X)</enum><text>Section 891 is amended by striking <quote>deductions allowable under section 151 and under</quote> and inserting <quote>exclusion of the family allowance amount under section 63(a)(2) and the deductions allowable under</quote>.</text></subparagraph><subparagraph commented="no" id="idB86BA33177034D8F81B74125A79C590E"><enum>(Y)</enum><text>Section 904(b)(1) is amended to read as follows:</text><quoted-block act-name="" id="id64421C2C0BEE4BCF97671A9CA65A21A0" style="OLC"><paragraph id="id36F3DD954ECA4A33AB64505B79856B70"><enum>(1)</enum><header>Family allowance and deductions</header><text>For purposes of subsection (a), the taxable income in the case of an individual, estate, or trust
shall be computed without regard to the exclusion of the family allowance
amount under section 63(a)(2) or any deduction in lieu of such exclusion.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id9D317CE4233E4E488B348D6C0DA70A15"><enum>(Z)</enum><text>Section 931(b)(1) is amended by striking <quote>deductions (other than the deduction under section 151, relating to personal exemptions)</quote> and inserting <quote>deductions</quote>.</text></subparagraph><subparagraph commented="no" id="id162C6121C9A14022AD078E26E6A0F61C"><enum>(AA)</enum><text>Section 933 is amended—</text><clause commented="no" id="idA7719662E4524FFE80A5FC9664FEF2CB"><enum>(i)</enum><text>by striking <quote>deductions (other than the deduction under section 151, relating to personal exemptions)</quote> in paragraph (1) and inserting <quote>deductions</quote>, and</text></clause><clause commented="no" id="idABE9B71D0C624C438328AD49B6E8AD3B"><enum>(ii)</enum><text>by striking <quote>deductions (other than the deduction for personal exemptions under section 151)</quote> in paragraph (2) and inserting <quote>deductions</quote>.</text></clause></subparagraph><subparagraph commented="no" id="id544C07BFA4664F8482F7EEC8A0C75BD6"><enum>(BB)</enum><text>Section 1212(b)(2)(B)(ii) is amended to read as follows:</text><quoted-block act-name="" id="idC632C646337D4EBDB37DCBE759F748F1" style="OLC"><clause commented="no" id="idAE127BC3A52248FDB5589DC696750208"><enum>(ii)</enum><text>the family allowance amount for the taxable year under section 63(b) or any deduction allowed in
lieu thereof.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id5BC6DA0EB7064773BDC2A5AA9431400E"><enum>(CC)</enum><text>Section 1402(a)(7) is amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="id15C5351DEF5A45B4842ABEE0CD3F1AF7" style="OLC"><paragraph commented="no" id="id9A44D597E16D47AF99F6B8755F0E8B9A"><enum>(7)</enum><text>taxable income under section 63 shall be determined without regard to paragraph (2) of section
63(a), relating to the family allowance amount;</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id4AF3A27562814856834B93F02CE34408"><enum>(DD)</enum><text>Section 5000A(c)(4)(A) is amended by striking <quote>for whom the taxpayer is allowed a deduction under section 151 (relating to allowance of deduction
for personal exemptions)</quote> and inserting <quote>who are taken into account as a dependent by the taxpayer under section 152 for purposes of any
provision of this title</quote>.</text></subparagraph><subparagraph commented="no" id="id351F32BC47474257A52A5253DDFD4350"><enum>(EE)</enum><text>Section 6012(a)(1) is amended to read as follows:</text><quoted-block act-name="" id="id93C10EAFB0FA4C3A9DFC0A9D30ADE66E" style="OLC"><paragraph id="id6725DAB0AC964F65AAB0969DEC268726"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id0063BDA635594BFBA604C20071339D64"><enum>(A)</enum><text>Every individual—</text><clause id="idD72D6C723A1D4F6CA68278C1BC0229C7" indent="up1"><enum>(i)</enum><text>having for the taxable year gross income which equals or exceeds the family allowance amount
applicable to the individual under section 63, or</text></clause><clause id="id525F54C95E334763840E3DDEDEBD88D4" indent="up1"><enum>(ii)</enum><text>in the case of individuals entitled to make a joint return (but only if the individual and the
individual's spouse had the same household as their home at the close of
the taxable year), every individual whose gross income, when combined with
the gross income of the individual's spouse, equals or exceeds the family
allowance amount applicable to taxpayers who are married filing jointly
under section 63.</text></clause></subparagraph><subparagraph id="idA82C431010CE4B55AA6A257685B80B57" indent="up1"><enum>(B)</enum><text>Every individual not described in subparagraph (A) who is taken into account as a dependent by
another taxpayer under section 152 for purposes of any provision of this
title,
but only if such individual's gross income, when combined with the gross
income of all individuals taken into account in determining the family
allowance amount under section 63(b) of the taxpayer,
equals or exceeds the family allowance amount applicable to the taxpayer
under such section.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id2A719377CC0D40FABAF008DFE5737824"><enum>(FF)</enum><text>Section 6012(a)(8) is amended by striking <quote>is not less than the sum of the exemption amount plus the basic standard deduction under section
63(c)(2)(D)</quote> and inserting <quote>equals or exceeds the family allowance amount applicable to the estate under section 1398(c)(3)</quote>.</text></subparagraph><subparagraph commented="no" id="idEFA0BE2C2FEE4149A1CCF3123A8B5CFD"><enum>(GG)</enum><text>Section 6013(b)(3)(A) is amended by striking <quote>has the meaning given to such term</quote> and all that follows and inserting <quote>means the family allowance amount applicable to a taxpayer who is single or married filing
separately under section 63(b).</quote>.</text></subparagraph><subparagraph commented="no" id="id328038ABE24B4BA7872B755C2B6B380F"><enum>(HH)</enum><text>Section 6014(a) is amended by striking <quote>who does not itemize his deductions and who is not described in section 6012(a)(1)(C)(i)</quote> and inserting <quote>who is not described in section 6012(a)(1)(B)</quote>.</text></subparagraph><subparagraph commented="no" id="idD71B1A03DDD94F8EBB2E1C6BFDED7AE0"><enum>(II)</enum><text>Section 6103(l)(21)(A)(iii) is amended by striking <quote>for whom a deduction is allowed under section 151</quote> and inserting <quote>who is taken into account as a dependent under section 152 for purposes of any provision of this
title</quote>.</text></subparagraph><subparagraph commented="no" id="id59F4C26359B5420397D5D9C92B20368B"><enum>(JJ)</enum><text>Section 6334(d)(2)(A) is amended to read as follows:</text><quoted-block act-name="" id="idDC2045F728C34AA9A75E59C267657581" style="OLC"><subparagraph id="id59764D2A580643F7A59483D3AAE11FB2"><enum>(A)</enum><text>the family allowance amount determined under section 63(b) with respect to the taxpayer for the
taxable year in which such levy occurs, divided by</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id135566F8A67D40FAA5AC7BC5F6CEE996"><enum>(KK)</enum><text>Section 7703(b)(1) is amended by striking <quote>with respect to whom such individual is entitled to a deduction for the taxable year under section
151 (or would be so entitled but for section 152(e))</quote> and inserting <quote>who is a dependent (within the meaning of section 152) of the individual for the taxable year</quote>.</text></subparagraph></paragraph><paragraph commented="no" id="id17F84E0514EB4514AFF62CA06299559B"><enum>(4)</enum><header>Amendments relating to payroll withholding</header><subparagraph commented="no" id="id55E07A7B002E41E5836E00DB4A14FDE8"><enum>(A)</enum><header>In general</header><text>Paragraph (1) of section 3402(f) is amended by striking subparagraph (A) and all that follows and
inserting the following:</text><quoted-block act-name="" id="idC8ABD3B72F994533BD8FCC82DCEC92F1" style="OLC"><subparagraph id="id17E97B84FE2742ED922C04B321B80403"><enum>(A)</enum><text>an exemption equal to the family allowance exemption amount; and</text></subparagraph><subparagraph id="id9B11BA05DE3C46CEA7F2F9D08EDBA319"><enum>(B)</enum><text>any allowance to which the employee is entitled under subsection (m), but only if the employee's
spouse does not have in effect a withholding exemption certificate
claiming such allowance.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id9FE2E6B85FAE4286A5FDED2CFFAE0164"><enum>(B)</enum><header>Family allowance exemption amount</header><text>Subsection (f) of section 3402 is amended—</text><clause commented="no" id="idAEA801592D5A441A8FA108424085F5D5"><enum>(i)</enum><text>by redesignating paragraphs (2), (3), (4), (5), (6), and (7) as paragraphs (3), (4), (5), (6), (7),
and (8), respectively,</text></clause><clause commented="no" id="id89DBAA4B40EA42C0A91608036F721B70"><enum>(ii)</enum><text>by striking <quote>paragraph (2)(C)</quote> in paragraph (3)(B)(iii) and inserting <quote>paragraph (3)(C)</quote>, and</text></clause><clause commented="no" id="id85F59CE0E2194B699393FA1F922F82A9"><enum>(iii)</enum><text>by inserting after paragraph (1) the following new paragraph:</text><quoted-block act-name="" id="idABBDA9499DAB44D1BBB68B85CA01537B" style="OLC"><paragraph id="idCE8FB6715B3F466896E60D2175D24B0E"><enum>(2)</enum><header>Family allowance exemption amount</header><text>For purposes of this section—</text><subparagraph id="id9FC628CE6C0A40ED80B5779B8A0AAD82"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraphs (B) and (C), the term <term>family allowance exemption amount</term> means the family allowance amount with respect to the taxpayer under section 63(b) for the taxable
year in which the payroll period begins, prorated to the payroll period.</text></subparagraph><subparagraph id="id3927DCF55DC44697820CDAD271F85FF4"><enum>(B)</enum><header>Married employees</header><text>If the employee is married filing jointly and the employee's spouse is an employee receiving wages,
the employee and the employee's spouse may divide the family allowance
amount determined under section 63(b) in the proportion of their choice
for purposes of this paragraph, but the sum of the family allowance
exemption amounts claimed by the employee and the employee's spouse shall
not exceed such family allowance amount.</text></subparagraph><subparagraph id="idCA78786376444AA2934960E642D7BAAE"><enum>(C)</enum><header>Employees with more than 1 employer</header><text>In the case of an employee that has withholding exemption certificates in effect with respect to
more than 1 employer, the employee may divide the family allowance amount
(or the employee's share of such amount after the application of
subparagraph (B), if applicable) determined under section 63(b) among
employers in the proportion of the employee's choice for purposes of this
paragraph, but the sum of the family allowance exemption amounts claimed
by the employee with respect to all employers shall not exceed such family
allowance amount (or the employee's share of such amount after the
application of subparagraph (B), if applicable).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="id111E22BCC91A4F0F891285B8CA33C436"><enum>(C)</enum><header>Conforming amendments</header><clause commented="no" id="idED33BA96E181441F86DD0CC9A51C52F4"><enum>(i)</enum><text>Paragraph (2) of section 3402(a) is amended by striking <quote>the number of withholding exemptions claimed</quote> and all that follows and inserting <quote>the total amount of the withholding exemptions claimed.</quote>.</text></clause><clause commented="no" id="idA7CADB338B0043189C1D8E0FE639AD4F"><enum>(ii)</enum><text>Paragraph (3) of section 3402(f), as redesignated by subparagraph (B)(i) of this paragraph, is
amended—</text><subclause commented="no" id="id5854E3D8E92641DA8EB662A1763C92B7"><enum>(I)</enum><text>by striking <quote>the number of withholding exemptions</quote> and all that follows in subparagraph (A) and inserting <quote>the total amount of the withholding exemptions which the employee claims, which shall in no event
exceed the amount to which the employee is entitled.</quote>,</text></subclause><subclause commented="no" id="idE54A9CC1BC024560A7B426218841F15C"><enum>(II)</enum><text>by striking <quote>the number of withholding exemptions</quote> each place it appears in subparagraphs (B) and (C) and inserting <quote>the total amount of the withholding exemptions</quote>,</text></subclause><subclause commented="no" id="idCE347B5BCE8B459B86137E0750B2ADE7"><enum>(III)</enum><text>by striking <quote>the number to which he is entitled</quote> each place it appears in subparagraph (B) and inserting <quote>the amount to which the employee is entitled</quote>,</text></subclause><subclause commented="no" id="idA7BD3E8E51F54E62961795FEA176D889"><enum>(IV)</enum><text>by striking <quote>the number to which the employee is entitled</quote> in subparagraph (C) and inserting <quote>the amount to which the employee is entitled</quote>, and</text></subclause><subclause commented="no" id="idBD384863D09C42C0A4AFBAD7A4A81C5C"><enum>(V)</enum><text>by striking <quote>the number to which he will be, or reasonably may be expected to be, so entitled</quote> in subparagraph (C) and inserting <quote>the amount to which the employee will be, or reasonably may be expected to be, so entitled</quote>.</text></subclause></clause><clause commented="no" id="id90E41F638A4846CCBB24E190F671E2C1"><enum>(iii)</enum><text>Paragraph (7) of section 3402(f), as redesignated by subparagraph (B)(i) of this paragraph, is
amended by striking <quote>shall be entitled to only one withholding exemption</quote> and inserting <quote>shall be treated as single or married filing
separately for purposes of determining the family allowance exemption
amount</quote>.</text></clause><clause commented="no" id="id57193AE3FFAA41AFB902F52223D46287"><enum>(iv)</enum><text>Paragraph (8) of section 3402(f), as redesignated by subparagraph (B)(i) of this paragraph, is
amended by inserting <quote>, except as provided in paragraph (2)(C)</quote> after <quote>with respect to one employer</quote>.</text></clause><clause commented="no" id="idE123B5E3E403473AB14E0329BE84BE24"><enum>(v)</enum><text>Paragraph (3) of section 3402(m) is amended by striking <quote>deductions (including the additional standard deduction under section 63(c)(3) for the aged and
blind)</quote> and inserting <quote>deductions</quote>.</text></clause><clause commented="no" id="idE7BA0F3027724152A37EBCD32B507949"><enum>(vi)</enum><text>Paragraph (2) of section 3402(r) is amended striking <quote>the sum of</quote> and all that follows and inserting <quote>the family allowance amount determined under section 63(b) for a taxpayer who is single or married
filing separately.</quote>.</text></clause><clause commented="no" id="id370EC4DCC47A40CC940B0F4BCCCE4DAA"><enum>(vii)</enum><text>Section 6040(4) is amended by striking <quote>section 3402(f)(2), (3), (4), and (5)</quote> and inserting <quote>paragraphs (3), (4), (5), and (6) of section 3402(f)</quote>.</text></clause></subparagraph></paragraph></subsection><subsection id="idE187CB58B6234BCC828AE1535E6BA375"><enum>(c)</enum><header>Conforming amendments</header><paragraph commented="no" id="id77FDB16F0AB64E25B868CC3C0B023574"><enum>(1)</enum><text>Section 1(f)(6) is amended—</text><subparagraph commented="no" id="id82A16CEF31E44791B4DC91161FD12EDD"><enum>(A)</enum><text>by striking <quote>63(c)(4)</quote> each place it appears and inserting <quote>63(b)(3)</quote>, and</text></subparagraph><subparagraph commented="no" id="id13DA4EF833B84CC09610801E4BA2D289"><enum>(B)</enum><text>by inserting <quote>, subsection (g)(4)(B)</quote> after <quote>paragraph (2)(A)</quote> in subparagraph (A).</text></subparagraph></paragraph><paragraph commented="no" id="id441B269B795E4D07960832DEE140F046"><enum>(2)</enum><text>Section 1(g)(4) is amended—</text><subparagraph commented="no" id="id2A2A79F838944C7790FFD4E814B8C68D"><enum>(A)</enum><text>by striking clause (ii) of subparagraph (A) and inserting the following:</text><quoted-block act-name="" id="id643C65D131FD4DC28CE9C79F0F93C03C" style="OLC"><clause commented="no" id="idDE4F3EABDB3140F79712831210B71C98"><enum>(ii)</enum><text>the sum of—</text><subclause commented="no" id="idCCD0A6F80E0F4443B76FCA8C8F98732B"><enum>(I)</enum><text>$500, plus</text></subclause><subclause commented="no" id="id0A0512E8AD154EA0B5B3081B9BFB2498"><enum>(II)</enum><text>the greater of the amount described in subclause (I) or the amount of the itemized deductions
allowed by this chapter which are directly connected with the production
of the portion of adjusted gross income referred to in clause (i).</text></subclause></clause><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="idDBD1A90975F246B3A98C28A98D9E4581"><enum>(B)</enum><text>by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, and
inserting after subparagraph (A) the following new subparagraph:</text><quoted-block act-name="" id="id72025E3A634449E5AA98AADCE509E7D2" style="OLC"><subparagraph id="id09D861A761664E7B97D2395202BEC740"><enum>(B)</enum><header>Adjustment for inflation</header><text>In the case of any taxable year beginning in a calendar year after 1988, the $500 amount in
subparagraph (A)(ii)(I) shall be increased by an amount equal to—</text><clause id="idC5650630C3FA48E0A295ED224CF6A658"><enum>(i)</enum><text>such dollar amount, multiplied by</text></clause><clause id="idCD3FB249E0EE471982F8AA88531F203B"><enum>(ii)</enum><text>the cost-of-living adjustment determined under subsection (f)(3) for the calendar year in which the
taxable year begins, by substituting <quote>calendar year 1987</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" id="id3D32CE835F96493DB2B2C6647BB17368"><enum>(3)</enum><text>Section 3(a) is amended to read as follows:</text><quoted-block act-name="" id="id7538AD6F0F7240E694E1A67201681F6C" style="OLC"><subsection id="id8D84592AEA8846B2986B0D4C0AB737A8"><enum>(a)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idD63A6E862B434B1EB17257B85BEB6B4F"><enum>(1)</enum><header>In general</header><text>In lieu of the tax imposed by section 1, there is hereby imposed for each taxable year on the
taxable income of every individual whose taxable income does not exceed
the ceiling amount a tax determined under tables, applicable to such
taxable year, which shall be prescribed by the Secretary and which shall
be in such form as the Secretary determines appropriate. In the table so
prescribed, the amounts of the tax shall be computed on the basis of the
rates prescribed by section 1.</text></paragraph><paragraph id="id1272962C04CE4A31A337613DE203B1D4" indent="up1"><enum>(2)</enum><header>Ceiling amount defined</header><text>For purposes of paragraph (1), the term <term>ceiling amount</term> means, with respect to any taxpayer, the amount (not less than $20,000) determined by the
Secretary for the tax rate category in which such taxpayer falls.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="id874C4E346FB24CEDBC7C85168478EF15"><enum>(4)</enum><text>Section 861(b) is amended by striking the last sentence.</text></paragraph><paragraph commented="no" id="id3B1058807577435FB3087F4514F4B811"><enum>(5)</enum><text>Section 862(b) is amended by striking the last sentence.</text></paragraph><paragraph commented="no" id="idB092D9041EFC4C57A67ED3420462C05E"><enum>(6)</enum><text>Section 1398(c) is amended—</text><subparagraph commented="no" id="id73280AFC6EBC48E394478A1D78C448F3"><enum>(A)</enum><text>by striking paragraph (3) and inserting the following:</text><quoted-block act-name="" id="idD0728FCEB7BA491689A49C0AFCDE21B1" style="OLC"><paragraph id="id2EEC34431FD24AD0A3756AFC3443DA1E"><enum>(3)</enum><header>Family allowance amount</header><text>The family allowance amount under section 63(b) taken into account for the estate for the taxable
year shall be the same as for a taxpayer who is single or married filing
separately.</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="idFF2FBB6F8CB3408B8DC0C0B96DC9F644"><enum>(B)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">basic standard deduction</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">family allowance amount</header-in-text></quote>.</text></subparagraph></paragraph><paragraph commented="no" id="id0C46BFA8F0A44426A06DA9CC1CDAA817"><enum>(7)</enum><text>Section 6212(c)(2) is amended by striking subparagraph (A) and by redesignating subparagraphs (B)
and (C) as subparagraphs (A) and (B), respectively.</text></paragraph><paragraph commented="no" id="id61C2044C18BD4A03BFF289733CC790FC"><enum>(8)</enum><text>Section 6014(b)(4) is amended by striking <quote>deductions</quote> and all that follows and inserting <quote>deductions.</quote>.</text></paragraph><paragraph commented="no" id="id05E4278B250C4E03A0E8EB33EE4D4961"><enum>(9)</enum><text>Section 6504 is amended by striking paragraph (2) and by redesignating paragraphs (3), (4), (5),
(6), (7), (8), (9), (10), and (11) as paragraphs (2), (3), (4), (5), (6),
(7), (8), (9), and (10), respectively.</text></paragraph></subsection><subsection commented="no" id="id39535819B33A4898AE533E2C39D9AE72"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text></subsection></section><section commented="no" id="id1DBECDEA001E49DC8D0305B67195904E"><enum>203.</enum><header>Repeal of limitations relating to itemized deductions</header><subsection commented="no" id="id135E21535FF4426399825DDAB3756E34"><enum>(a)</enum><header>In general</header><text>Sections 67 and 68 are repealed.</text></subsection><subsection commented="no" id="id2119B3D311E6404196D33363A46DB99A"><enum>(b)</enum><header>Conforming amendments</header><paragraph commented="no" id="id8AA18662840C4390B2598A3C23C84D3C"><enum>(1)</enum><text>Section 162(o) is amended by striking paragraph (2) and redesignating paragraph (3) as paragraph
(2).</text></paragraph><paragraph commented="no" id="id48E23F3EAD11425990A8A99C435CC8A1"><enum>(2)</enum><text>Section 164(b)(5)(H)(ii) is amended—</text><subparagraph commented="no" id="id8DA8D348E5094E329F38BE926E981113"><enum>(A)</enum><text>by striking the comma at the end of subclause (I) and inserting <quote>, and</quote>,</text></subparagraph><subparagraph commented="no" id="id4EB0BF7973984522A9CFDA84C4A209A0"><enum>(B)</enum><text>by striking <quote>, and</quote> at the end of subclause (II) and inserting a period, and</text></subparagraph><subparagraph commented="no" id="idFE4A89422D54411082D74843B1D9EA63"><enum>(C)</enum><text>by striking subclause (III).</text></subparagraph></paragraph><paragraph commented="no" id="id22ECA620D3B0454DB65F051F6918C132"><enum>(3)</enum><text>Section 302(b)(5) is amended by inserting <quote>, as in effect on December 31, 2015</quote> after <quote>67(c)(2)(B)</quote>.</text></paragraph><paragraph commented="no" id="id3FF3907BED374986BBBF2227D3A05AED"><enum>(4)</enum><text>Section 562(c) is amended by inserting <quote>, as in effect on December 31, 2015</quote> after <quote>67(c)(2)(B)</quote>.</text></paragraph><paragraph commented="no" id="id6C967F77DFEE4121A15F467F6CD66E1B"><enum>(5)</enum><text>Section 642(b)(2)(C)(i)(II) is amended by inserting <quote>, and as in effect on December 31, 2015</quote> after <quote>642(b)</quote>.</text></paragraph><paragraph commented="no" id="idE177F5A5875F4B0BA08204EDC1E4AE1C"><enum>(6)</enum><text>Section 772(c)(3) is amended—</text><subparagraph commented="no" id="id4D98F71462FE45699EFFD008DA1BC6B9"><enum>(A)</enum><text>by striking subparagraph (B), and</text></subparagraph><subparagraph commented="no" id="id025AC6181B4A4587BEEAD9D2F05E90BC"><enum>(B)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">Income or loss from other activities</header-in-text>.—</quote> and all that follows through <quote>For purposes of this chapter</quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Income or loss from other activities</header-in-text>.—For purposes of this chapter</quote>.</text></subparagraph></paragraph><paragraph commented="no" id="id7E819EC172A44B58A479C7C6956D8915"><enum>(7)</enum><text>Section 773(a)(3)(B) is amended by striking clause (i) and by redesignating clauses (ii), (iii),
and (iv) as clauses (i), (ii), and (iii), respectively.</text></paragraph><paragraph commented="no" id="id3D1696D4ACD4421EB2CB3E785B146A11"><enum>(8)</enum><text>Section 773(b) is amended by striking paragraph (3).</text></paragraph><paragraph commented="no" id="idAA9BB375CC0E4CD2BC36BAF41C8C3502"><enum>(9)</enum><text>Section 1411(a)(2)(B)(i) is amended by inserting <quote>, as in effect on December 31, 2015</quote> after <quote>67(e)</quote>.</text></paragraph><paragraph commented="no" id="id15CB8EE166E345D5971CC341CCA08BE0"><enum>(10)</enum><text>Subparagraphs (C)(iii) and (D)(v) of section 6654(d)(1) are each amended by inserting <quote>, as in effect on December 31, 2015</quote> before the period.</text></paragraph></subsection><subsection commented="no" id="idD6E54452760D477BA40717BE40C248E4"><enum>(c)</enum><header>Effective date</header><text>The repeal and the amendments made by this section shall apply to taxable years beginning after
December 31, 2015.</text></subsection></section><section commented="no" id="id83EDFC6B2AB84C60A9AC0825622A4F62"><enum>204.</enum><header>Termination of separate treatment of capital gains</header><text display-inline="no-display-inline">Subsection (h) of section 1 is amended by adding at the end the following new paragraph:</text><quoted-block act-name="" id="id3A0E6C3CB92F4A6AA9E145DC3C6B2FED" style="OLC"><paragraph id="idE649C8142B604995BEAB4559ADECF3F3"><enum>(12)</enum><header>Termination</header><text>This subsection shall not apply to any taxable year beginning after December 31, 2015.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><section commented="no" id="id90FAA5D080DA493384748D9994640CCC"><enum>205.</enum><header>Repeals</header><subsection commented="no" id="idD2008EE7A2FF4A108D70D34AC34DDD6C"><enum>(a)</enum><header>In general</header><text>The following provisions of the Internal Revenue Code of 1986 are repealed:</text><paragraph commented="no" id="idC568012706F347D99CF098D37BE76643"><enum>(1)</enum><text>Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits).</text></paragraph><paragraph commented="no" id="id5B3C0E0C49CB4F8E91C31631C1D9B80C"><enum>(2)</enum><text>Subpart B of part IV of subchapter A of chapter 1 (relating to other credits), other than section
27 (relating to taxes of foreign countries and possessions of the United
States; possession tax credit).</text></paragraph><paragraph commented="no" id="id7D4FEF1E35DD429B88927CCF40C66707"><enum>(3)</enum><text>Subpart C of part IV of subchapter A of chapter 1 (relating to refundable credits), other than
sections 32 (relating to earned income) and 36B (relating to refundable
credit for coverage under a qualified health plan).</text></paragraph><paragraph commented="no" id="id0583BB2319B14A7B88CE67187F30DD4C"><enum>(4)</enum><text>Part VI of subchapter A of chapter 1 (relating to alternative minimum tax).</text></paragraph><paragraph commented="no" id="idB60DC7DA8D494FAD8FEFD5763F1315A9"><enum>(5)</enum><text>Section 217 (relating to moving expenses).</text></paragraph><paragraph commented="no" id="id03817721330246ED920A7BF8CB454571"><enum>(6)</enum><text>Section 221 (relating to interest on education loans).</text></paragraph><paragraph commented="no" id="id47DE4DD37C4840D2BB499F6717715D90"><enum>(7)</enum><text>Section 222 (relating to qualified tuition and related expenses).</text></paragraph><paragraph commented="no" id="idC2BF9F0F54774C66B6E04373FF4ED9E6"><enum>(8)</enum><text>Chapter 2A (relating to unearned income medicare contribution).</text></paragraph></subsection><subsection commented="no" id="id4605476A8FEF4CF686A5ED77EC5F9517"><enum>(b)</enum><header>Effective date</header><text>The repeals made by subsection (a) shall take effect for taxable years beginning after December 31,
2015.</text></subsection></section><section id="idC0FE9B8CD0B842C1B0583A2140DB20B6"><enum>206.</enum><header>Establishment of progressive tax rebate</header><subsection id="idF9F1AA681FDE48B589518FCEE2270FAA"><enum>(a)</enum><header>In general</header><text>Section 32 is amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="idB4EE5F0436274B3E81CBC3C17EA5028C" style="OLC"><section id="id414E0CFAC4CD491AB951DF919CF74C37"><enum>32.</enum><header>Progressive tax rebate</header><subsection id="id5C54846D495044F2A248BF92B4893617"><enum>(a)</enum><header>Allowance of credit</header><text>In the case of an eligible taxpayer, there shall be allowed as a credit against the tax imposed
by this subtitle for the taxable year an amount equal to the
sum of—</text><paragraph id="id063D1520C1A84BF9A2227C2EBA69F149"><enum>(1)</enum><text>the earned income amount (as determined under subsection (b)),</text></paragraph><paragraph id="idA9E3421AEC994611A062314688299A2F"><enum>(2)</enum><text>the child benefit amount (as determined under subsection (c)), plus</text></paragraph><paragraph id="id78FA7FD9C70347598F4D019726B66481"><enum>(3)</enum><text>the additional child benefit amount (as determined under subsection (d)).</text></paragraph></subsection><subsection id="idD2F60AE403DB46B68F265EDB7D27C3E3"><enum>(b)</enum><header>Earned income amount</header><paragraph id="idC202A8916D574C51BB7FA621BE7E34EE"><enum>(1)</enum><header>Single workers</header><text>In the case of an eligible taxpayer (other than a head of a household as defined in section 2(b))
who is not filing a joint return for the taxable year under section 6013,
the earned income amount shall be
equal to—</text><subparagraph id="id6D5E83CE923B41D3A52ABEBC6A74B413"><enum>(A)</enum><text>in the case of a taxpayer whose earned income for the taxable year does not exceed $6,100, 25.1
percent of such earned income,</text></subparagraph><subparagraph id="id77247E9723964AF59D1BDD21853D4E61"><enum>(B)</enum><text>in the case of a taxpayer whose earned income for the taxable year exceeds $6,100 but does not
exceed $9,000, $1,530 plus 17.1 percent of such earned income in excess of
$6,100,</text></subparagraph><subparagraph id="id4486F9656F624FDCBCD43402A18EA0BE"><enum>(C)</enum><text>in the case of a taxpayer whose earned income (or, if greater, adjusted gross income) for the
taxable year exceeds $9,000, but does not
exceed $49,494, $2,025 minus 5 percent of such earned income or adjusted
gross income in excess of
$9,000, or</text></subparagraph><subparagraph id="id7BD7CBDA86794FEA9BB7323B0AF0841E"><enum>(D)</enum><text>in the case of a taxpayer whose earned income (or, if greater, adjusted gross income) for the
taxable year exceeds $49,494, $0.</text></subparagraph></paragraph><paragraph id="idF82879D164FD4D0FA192659F704F2FE0"><enum>(2)</enum><header>Head of household</header><text>In the case of an eligible taxpayer who is a head of a household (as defined in section 2(b)),
the earned income amount shall be equal to—</text><subparagraph id="id24B5912B72174CB4950BBB76139C9201"><enum>(A)</enum><text>in the case of a taxpayer whose earned income for the taxable year does not exceed $9,150, 25.1
percent of such earned income,</text></subparagraph><subparagraph id="idA94F281F03614FCF925C83BF39C09C7E"><enum>(B)</enum><text>in the case of a taxpayer whose earned income for the taxable year exceeds $9,150 but does not
exceed $13,500, $2,294 plus 17.1 percent of such earned income in excess
of
$9,150,</text></subparagraph><subparagraph id="idBFEBCD81C71B4DAC97AC71CB3840006A"><enum>(C)</enum><text>in the case of a taxpayer whose earned income (or, if greater, adjusted gross income) for the
taxable year exceeds $13,500, but does not
exceed $74,241, $3,037 minus 5 percent of such earned income or adjusted
gross income in excess of
$13,500, or</text></subparagraph><subparagraph id="idD233EE2F55F34DC0B9C1EE6C9920EE61"><enum>(D)</enum><text>in the case of a taxpayer whose earned income (or, if greater, adjusted gross income) for the
taxable year exceeds $74,241, $0.</text></subparagraph></paragraph><paragraph id="id7E0ADA8D411743BE9D25C5D294C4B990"><enum>(3)</enum><header>Married filing jointly</header><text>In the case of an eligible taxpayer filing a joint return under section 6013, the earned income
amount shall be determined pursuant to paragraph (1), except that the
dollar amounts in effect under such paragraph shall be multiplied by 2.</text></paragraph></subsection><subsection id="id1B4769E6C0184C7696075BC622D9C920"><enum>(c)</enum><header>Child benefit amount</header><paragraph id="id54720512E8F74616840EB2C0CE387A2A"><enum>(1)</enum><header>In general</header><text>In the case of an eligible taxpayer with a qualifying child, the child benefit amount shall be
equal to 15 percent of the earned income of such taxpayer for the taxable
year.</text></paragraph><paragraph id="idBE1A7F5A190244A8BD08182C575A7C8A"><enum>(2)</enum><header>Limitations</header><subparagraph id="idB8DB7AD1D7F74DAD8D067F031CDAF0B4"><enum>(A)</enum><header>Limitation based on number of children</header><text>The child benefit amount determined under paragraph (1) shall not exceed an amount equal to the
product of—</text><clause id="id861B5150E1D4462987FE44FFB0B4940A"><enum>(i)</enum><text>the number of qualifying children of the taxpayer, multiplied by</text></clause><clause id="id78CEB24A7DE9448E9F5809A731F3C46B"><enum>(ii)</enum><text>$1,590.</text></clause></subparagraph><subparagraph id="id3B8668B28A574168AE3DEE8D26C88D6A"><enum>(B)</enum><header>Reduction based on earnings or adjusted gross income</header><text>The child benefit amount determined under this subsection (as determined after application of
subparagraph (A)) shall be reduced (but not below zero) by an amount equal
to 5 percent of the earned income (or, if greater, the adjusted gross
income) of the taxpayer for the taxable year in excess of $75,000
($110,000 in the case of a joint return).</text></subparagraph></paragraph></subsection><subsection id="idBD1BB2D7AAAA417DB332DB878108EFCF"><enum>(d)</enum><header>Additional child benefit amount</header><paragraph id="id87626D27FB204DD0A9EDA3EB7F9645EE"><enum>(1)</enum><header>In general</header><text>In the case of an eligible taxpayer with a qualifying child, the additional child benefit amount
shall be equal to—</text><subparagraph id="idDE89D3FECE464102A8744D141821E3CC"><enum>(A)</enum><text>in the case of a taxpayer whose earned income for the taxable year does not exceed $20,000, the
applicable percentage of such earned income,</text></subparagraph><subparagraph id="idAC01EAC3A3A14B3FACF63F617D193E43"><enum>(B)</enum><text>in the case of a taxpayer whose earned income exceeds $20,000 but does not exceed $25,000, the
applicable percentage of $20,000,</text></subparagraph><subparagraph id="id459319948D0B461B8F0ECE38AE58EECC"><enum>(C)</enum><text>in the case of a taxpayer whose earned income (or, if greater, adjusted gross income) exceeds
$25,000 but does not exceed the applicable amount, an amount equal to—</text><clause id="id72DD76292B9B4F3EB58B93F51D1FB0E8"><enum>(i)</enum><text>the applicable percentage of $20,000, minus</text></clause><clause id="idE1844B8551454DC5817BA921F2EC16B1"><enum>(ii)</enum><text>15 percent of such earned income or adjusted gross income in excess of $25,000, or</text></clause></subparagraph><subparagraph id="id84D453E58470428D8B42CA54C4CFA4B3"><enum>(D)</enum><text>in the case of a taxpayer whose earned income (or, if greater, adjusted gross income) exceeds the
applicable amount, $0.</text></subparagraph></paragraph><paragraph id="id18A130BC40EA42969ABE5AD14D1240B8"><enum>(2)</enum><header>Applicable percentage</header><text>For purposes of paragraph (1), the applicable percentage is—</text><subparagraph id="id9F6FBC0E2ABE48ADB53F20711AA7E98E"><enum>(A)</enum><text>in the case of a taxpayer with 1 qualifying child, 11 percent,</text></subparagraph><subparagraph id="id2763C74F92354545B83BB9435D22962F"><enum>(B)</enum><text>in the case of a taxpayer with 2 qualifying children, 17 percent, and</text></subparagraph><subparagraph id="id7740A5ABA47E479B9FC855820069DA40"><enum>(C)</enum><text>in the case of a taxpayer with 3 or more qualifying children, 19 percent.</text></subparagraph></paragraph><paragraph id="id5B81F1413C7D4E7795063ACBB8279E90"><enum>(3)</enum><header>Applicable amount</header><text>For purposes of paragraph (1), the applicable amount is—</text><subparagraph id="id030E26B5B6E942C9BF5A19EF103F9D7A"><enum>(A)</enum><text>in the case of a taxpayer with 1 qualifying child, $39,667,</text></subparagraph><subparagraph id="idBA58743E01E645E08CE6D62A9E134C88"><enum>(B)</enum><text>in the case of a taxpayer with 2 qualifying children, $47,667, and</text></subparagraph><subparagraph id="idE617018491FF44148C2B5B59509E26D8"><enum>(C)</enum><text>in the case of a taxpayer with 3 or more qualifying children, $50,333.</text></subparagraph></paragraph></subsection><subsection id="idB9E28A2741ED4F5E8FF53E1EC17FD3BC"><enum>(e)</enum><header>Eligible taxpayer</header><paragraph id="idC28ABEA678BE45C3AA0FEE8AE418A9C0"><enum>(1)</enum><header>In general</header><text>The term <term>eligible taxpayer</term> means an individual—</text><subparagraph id="id362D0EA56EA2401BA76305EE9844FE51"><enum>(A)</enum><text>whose principal place of abode is in the United States for more than one-half of such taxable year,
and</text></subparagraph><subparagraph id="id16CEF7305DF4401095E7566366EA46AB"><enum>(B)</enum><text>is not a dependent (as defined under section 152) to another taxpayer for any
taxable year beginning in the same calendar year as such taxable year.</text></subparagraph></paragraph><paragraph commented="no" id="id8813F692FEF0421D83E1927124E768E1"><enum>(2)</enum><header>Qualifying child ineligible</header><text>If an individual is the qualifying child of a taxpayer for any taxable year of such taxpayer
beginning in a calendar year, such individual shall not be treated as an
eligible taxpayer for any taxable year of such individual beginning in
such calendar year.</text></paragraph><paragraph commented="no" id="id69CBCD09BC0544139524FA2198F6C2F4"><enum>(3)</enum><header>Exception for taxpayer claiming benefits under section 911</header><text>The term <quote>eligible taxpayer</quote> does not include any taxpayer who claims the benefits of section 911 for the taxable year.</text></paragraph><paragraph commented="no" id="id41032270DCDF49D5A975F36573CC8FD8"><enum>(4)</enum><header>Limitation on eligibility of nonresident aliens</header><text>The term <quote>eligible taxpayer</quote> shall not include any individual who is a nonresident alien individual for any portion of the
taxable year unless such individual is treated for such taxable year as a
resident of the United States for purposes of this chapter by reason of an
election under subsection (g) or (h) of section 6013.</text></paragraph><paragraph commented="no" id="id9AD2BDBBC37C451CB9876374C286394E"><enum>(5)</enum><header>Identification number requirement</header><text>No credit shall be allowed under this section to an eligible taxpayer who does not include on the
return of tax for the taxable year—</text><subparagraph commented="no" id="id444E3365ED7A47279C8B62249A3B6233"><enum>(A)</enum><text>such individual's taxpayer
identification number, and</text></subparagraph><subparagraph commented="no" id="idE4C8921BFF9F4629BA6F452D810C9C24"><enum>(B)</enum><text>if the individual is married (within the meaning of section 7703), the taxpayer identification
number of such individual's spouse.</text></subparagraph></paragraph><paragraph commented="no" id="idDC2C7CEF400E4432BC881FF3CB07767F"><enum>(6)</enum><header>Taxpayers who do not include TIN, etc., of any qualifying child</header><text>No credit shall be allowed under this section to any eligible taxpayer who has one or more
qualifying children if no qualifying child of such taxpayer is taken
into account under subsection (c) or (d) by reason of subsection (f)(4).</text></paragraph><paragraph commented="no" id="id5F63B00B0B424A4DB88679C0A2A94C87"><enum>(7)</enum><header>Treatment of military personnel stationed outside of the United States</header><text>For purposes of paragraph (1)(A) and subsection (f)(3), the principal place of abode of a member of
the Armed Forces of
the United States shall be treated as in the United States during any
period during which such member is stationed outside the United States
while serving on extended active duty with the Armed Forces of the United
States. For purposes of the preceding sentence, the term <quote>extended active duty</quote> means any period of active duty pursuant to a call or order to such duty for a period in excess of
90 days or for an indefinite period.</text></paragraph><paragraph commented="no" id="idA53007ED86C3425C8C729D0BAA4434E6"><enum>(8)</enum><header>Joint return</header><subparagraph commented="no" id="id8F37B4FE74AC47959A5EAEB8ACEEA16C"><enum>(A)</enum><header>Married individuals</header><text>In the case of an individual who is married (within the meaning of section 7703), this section
shall apply only if a joint return is filed for the taxable year under
section 6013.</text></subparagraph><subparagraph commented="no" id="id48FBB46B99CF444EA64BA26D50713063"><enum>(B)</enum><header>Other</header><text>In the case of taxpayer filing a joint return under section 6013, such taxpayer shall not be
treated as an eligible taxpayer for purposes of this section unless either
the taxpayer or the taxpayer's spouse satisfies each of the requirements
under this subsection.</text></subparagraph></paragraph></subsection><subsection commented="no" id="id014BC5A59F1D4300B2E054AF012CCD36"><enum>(f)</enum><header>Qualifying child</header><paragraph commented="no" id="id418C76CAF91E42AB9A14794E42CD78FB"><enum>(1)</enum><header>In general</header><text>The term <term>qualifying child</term> means a qualifying child of the taxpayer (as defined in section 152(c), determined without regard
to paragraph (1)(D) thereof and section 152(e)).</text></paragraph><paragraph commented="no" id="idD2453BF6F9DF4D72AE57C37DF190843D"><enum>(2)</enum><header>Married individual</header><text>The term <term>qualifying child</term> shall not include an individual who is married as of the close of the eligible taxpayer's taxable
year
unless the individual qualifies as a dependent (as defined under section
152) of the taxpayer for such
taxable year.</text></paragraph><paragraph commented="no" id="idB535AB03458549AEB9E8ED04629A062B"><enum>(3)</enum><header>Place of abode</header><text>For purposes of paragraph (1), the requirements of section 152(c)(1)(B) shall be met only if the
principal place of abode is in the United States.</text></paragraph><paragraph commented="no" id="id5DD53C1419624D38A11025DBA17CF0C2"><enum>(4)</enum><header>Identification requirements</header><subparagraph commented="no" id="idF98CEA2AA4654C58A33E8299647921B4"><enum>(A)</enum><header>In general</header><text>A qualifying child shall not be taken into account under subsection (c) or (d) unless the taxpayer
includes the name, age, and TIN of the qualifying child on the return of
tax for the taxable year.</text></subparagraph><subparagraph commented="no" id="idD07A7A69250F4CB2B77B708BC2C49582"><enum>(B)</enum><header>Other methods</header><text>The Secretary may prescribe other methods for providing the information described in subparagraph
(A).</text></subparagraph></paragraph></subsection><subsection commented="no" id="id039E437CC88743108D3EC43C4599AF09"><enum>(g)</enum><header>Earned income</header><paragraph commented="no" id="id8E43EFA832BD454FB67027223A06FC0D"><enum>(1)</enum><header>In general</header><text>The term <term>earned income</term> means—</text><subparagraph commented="no" id="id544727D58A304A899FF48618C56950D3"><enum>(A)</enum><text>wages, salaries, tips, and other employee compensation, but only if such amounts are includible in
gross income for the taxable year, plus</text></subparagraph><subparagraph commented="no" id="idF8FF057A655041E396DB6754B0D89930"><enum>(B)</enum><text>the amount of the taxpayer's net earnings from self-employment for the taxable year (within the
meaning of section 1402(a)), but such net earnings shall be determined
with regard to the deduction allowed to the taxpayer by section 164(f).</text></subparagraph></paragraph><paragraph commented="no" id="idBCB0AB544D334D14BDBEBB0860A0E302"><enum>(2)</enum><header>Special rules</header><text>For purposes of paragraph (1)—</text><subparagraph commented="no" id="idF0D446A4FAFB4979AAF1BE8765903013"><enum>(A)</enum><text>no amount received as a pension or annuity shall be taken into account,</text></subparagraph><subparagraph commented="no" id="idB55F066D82294EDA89568A925BD4EF15"><enum>(B)</enum><text>no amount to which section 871(a) applies (relating to income of nonresident alien individuals not
connected with United States business) shall be taken into account,</text></subparagraph><subparagraph commented="no" id="idB56BB6229C444AB186BB119E64284C9B"><enum>(C)</enum><text>no amount received for services provided by an individual while the individual is an inmate at a
penal institution shall be taken into account,</text></subparagraph><subparagraph commented="no" id="idD5715DB935FD445784D2618CF1787243"><enum>(D)</enum><text>no amount described in paragraph (1) received for service performed in work activities as
defined in paragraph (4) or (7) of section 407(d) of the Social Security
Act to which the taxpayer is assigned under any State program under part A
of title IV of such Act shall be taken into account, but only to the
extent such amount is subsidized under such State program, and</text></subparagraph><subparagraph commented="no" id="idC6DE19D39C044795B30D6E47A9D26CC6"><enum>(E)</enum><text>a taxpayer may elect to treat amounts excluded from gross income by reason of section 112 as earned
income.</text></subparagraph></paragraph></subsection><subsection commented="no" id="idA9843BB29F6D4E85A92AA87E5F28334A"><enum>(h)</enum><header>Taxable year must be full taxable year</header><text>Except in the case of a taxable year closed by reason of the death of the eligible taxpayer, no
credit shall
be allowable under this section in the case of a taxable year covering a
period of less than 12 months.</text></subsection><subsection commented="no" id="idC7316879EC85498EBA9BFD710A891839"><enum>(i)</enum><header>Coordination with certain means-Tested programs</header><text>For purposes of—</text><paragraph commented="no" id="id8F656A60038C442ABC69F8FAC7720539"><enum>(1)</enum><text>the United States Housing Act of 1937,</text></paragraph><paragraph commented="no" id="idFCCC0550ADFF491BA8F8D94DA18E2AC2"><enum>(2)</enum><text>title V of the Housing Act of 1949,</text></paragraph><paragraph commented="no" id="id448B9DE0F3BB4AAB9BFADF4AB3D32797"><enum>(3)</enum><text>section 101 of the Housing and Urban Development Act of 1965,</text></paragraph><paragraph commented="no" id="idEE514E6708564D54A436DD2E0D20E503"><enum>(4)</enum><text>sections 221(d)(3), 235, and 236 of the National Housing Act, and</text></paragraph><paragraph commented="no" id="id2A004D84CFEC492A8D448569E666A8D6"><enum>(5)</enum><text>the Food and Nutrition Act of 2008,</text></paragraph><continuation-text continuation-text-level="subsection">any refund made to a taxpayer by reason of this section shall
not be treated as income (and shall not be taken into account in
determining resources for the month of its receipt and the following
month).</continuation-text></subsection><subsection id="idB3D42C5833F64BFAB99299022B69923C"><enum>(j)</enum><header>Amount of credit To be determined under tables</header><text>The amount of the credit allowed by this section shall be determined under tables prescribed by the
Secretary.</text></subsection><subsection id="id4F43CD02CC2D47F19D58BB2D78EB2A0C"><enum>(k)</enum><header>Denial of credit for individuals having excessive investment income</header><paragraph id="idB3D8365C5F6B4C4A8013D0F560B6C470"><enum>(1)</enum><header>In general</header><text>No credit shall be allowed under subsection (a) for the taxable year if the aggregate amount of
disqualified income of the taxpayer for the taxable year exceeds $5,000.</text></paragraph><paragraph id="idCE2E3DF2721747EFB4F46B775678933D"><enum>(2)</enum><header>Disqualified income</header><text>For purposes of paragraph (1), the term <term>disqualified income</term> means—</text><subparagraph id="idDE144EB3ABE74427B47318ECCF471548"><enum>(A)</enum><text>interest or dividends to the extent includible in income for the taxable year,</text></subparagraph><subparagraph id="idAE7ACC8560B1446096B15B8EBAD04709"><enum>(B)</enum><text>interest received or accrued during the taxable year which is exempt from tax imposed by this
chapter,</text></subparagraph><subparagraph id="idA97BA0719D7C462C95057DF6244F3EC9"><enum>(C)</enum><text>the excess (if any) of—</text><clause id="id1BD66F2F9FE648D8991771838A089CA9"><enum>(i)</enum><text>gross income from rents or royalties not derived in the ordinary course of a trade or business,
over</text></clause><clause id="id27122E3C5A7A4BAFA7FE8A481845B562"><enum>(ii)</enum><text>the sum of—</text><subclause id="id5EC1C012D96D44118ABD07D9ADBDD1D3"><enum>(I)</enum><text>the deductions (other than interest) which are clearly and directly allocable to such gross income,
plus</text></subclause><subclause id="id28FC8FD4191545F78FA7A9B2546DD2FE"><enum>(II)</enum><text>interest deductions properly allocable to such gross income,</text></subclause></clause></subparagraph><subparagraph id="id07A592E0AD754FE1AC5AF2355C10E4D2"><enum>(D)</enum><text>the capital gain net income (as defined in section 1222) of the taxpayer for such taxable year, and</text></subparagraph><subparagraph id="id7AA2F51E7DDA40B19972D0B86ECC419E"><enum>(E)</enum><text>the excess (if any) of—</text><clause id="id8DDF2F1B8523436FA29B2FD727CFD975"><enum>(i)</enum><text>the aggregate income from all passive activities for the taxable year (determined without regard to
any amount included in earned income under subsection (f) or described in
a preceding subparagraph), over</text></clause><clause id="id0028FBAFA6474CE184DC716D2498AA72"><enum>(ii)</enum><text>the aggregate losses from all passive activities for the taxable year (as so determined).</text></clause></subparagraph></paragraph><paragraph id="id1195D25CF22048EF99F7B1F55FE68AAA"><enum>(3)</enum><header>Passive activity</header><text>For purposes of paragraph (2)(E), the term <term>passive activity</term> has the meaning given such term by section 469.</text></paragraph></subsection><subsection id="idEF094C13DBF249AF9B9FE920D2076DC2"><enum>(l)</enum><header>Inflation adjustments</header><paragraph id="idA92BF9642F2A4D9F893A482FDA39B39C"><enum>(1)</enum><header>In general</header><text>In the case of any taxable year beginning after 2015, each of the dollar amounts in subsections
(b), (c), (d),
and (j)(1) shall each be increased by an amount equal to—</text><subparagraph id="id9AB07861F6B04F43922250A029F17DEC"><enum>(A)</enum><text>such dollar amount, multiplied by</text></subparagraph><subparagraph id="idE60DFE442DE241EF88D6AFD9ABCCB0EE"><enum>(B)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the
taxable year begins, determined by substituting <quote>calendar year 2014</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof.</text></subparagraph></paragraph><paragraph id="id934D6D4AAE9D4995A1B9869D9138ED7A"><enum>(2)</enum><header>Rounding</header><text>If any dollar amount in subsections (b), (c), (d), and (j)(1), after being increased under
paragraph (1), is
not a
multiple of $100, such dollar amount shall be rounded to the nearest
multiple of $100.</text></paragraph></subsection><subsection id="id9278302C54B54763A8C4ADB093FCC0A4"><enum>(m)</enum><header>Restrictions on taxpayers who improperly claimed credit in prior year</header><paragraph id="id72E829B3DD364C16A6A2E46BA7F95D95"><enum>(1)</enum><header>Taxpayers making prior fraudulent or reckless claims</header><subparagraph id="idC98DC680EE5648A9A5565F8DA2EF7306"><enum>(A)</enum><header>In general</header><text>No credit shall be allowed under this section for any taxable year in the disallowance period.</text></subparagraph><subparagraph id="id6704EB23D77B4FC4A6A2E7DE3E077445"><enum>(B)</enum><header>Disallowance period</header><text>For purposes of subparagraph (A), the disallowance period is—</text><clause id="id2ED3E78B6C894F9E893D7EC9D4053BE8"><enum>(i)</enum><text>the period of 10 taxable years after the most recent taxable year for which there was a final
determination that the taxpayer's claim of credit under this section was
due to fraud, and</text></clause><clause id="id39B6E152DC2B46A28C371CB0DA3D06CB"><enum>(ii)</enum><text>the period of 2 taxable years after the most recent taxable year for which there was a final
determination that the taxpayer's claim of credit under this section was
due to reckless or intentional disregard of rules and regulations (but not
due to fraud).</text></clause></subparagraph></paragraph><paragraph id="idFCC713624F4940529F2145DAC83C5F99"><enum>(2)</enum><header>Taxpayers making improper prior claims</header><text>In the case of a taxpayer who is denied credit under this section for any taxable year as a result
of the deficiency procedures under subchapter B of chapter 63, no credit
shall be allowed under this section for any subsequent taxable year unless
the taxpayer provides such information as the Secretary may require to
demonstrate eligibility for such credit.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="idD8B024BFD2E04841A483A71168569244"><enum>(b)</enum><header>Conforming amendments</header><paragraph commented="no" id="idC05575C6AC7D43BB8F46811E4BF126AC"><enum>(1)</enum><text>Section 86(f)(2) is amended by striking <quote>section 32(c)(2)</quote> and inserting <quote>section 32(g)</quote>.</text></paragraph><paragraph commented="no" id="id117183B425004A96B337F21D9746670A"><enum>(2)</enum><text>Section 129(e)(2) is amended by striking <quote>section 32(c)(2)</quote> and inserting <quote>section 32(g)</quote>.</text></paragraph><paragraph commented="no" id="idF2712D612C14478DA99C343C315DF247"><enum>(3)</enum><text>Section 6213(g)(2) is amended—</text><subparagraph commented="no" id="id1CE4E592808F4293A923D062F137A499"><enum>(A)</enum><text>in subparagraph (G), by striking <quote>section 32(c)(2)(A)</quote> and inserting <quote>section 32(g)(1)</quote>, and</text></subparagraph><subparagraph commented="no" id="id1261821B4D894C398A5017238484052F"><enum>(B)</enum><text>in subparagraph (K), by striking <quote>section 32(k)(2)</quote> and inserting <quote>section 32(m)(2)</quote>.</text></subparagraph></paragraph><paragraph commented="no" id="idE4084E3C948A443EA12D1BBCC7BDC290"><enum>(4)</enum><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/31/1324">section 1324(b)</external-xref> of title 31, United States Code, is amended by inserting <quote>32,</quote> after <quote>25A,</quote>.</text></paragraph><paragraph commented="no" id="id8863DBBC029D4C96A811273DD0CDC9C2"><enum>(5)</enum><text>The table of sections for subpart C of part IV of subchapter A of chapter 1 of subtitle A is
amended by striking the item relating to section 32 and inserting the
following:</text><toc><toc-entry bold="off" level="section"><quote>Sec. 32. Progressive tax rebate.</quote>.</toc-entry></toc></paragraph></subsection><subsection id="idAC4F14C594AD4391B4FADAB3F76637DD"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text></subsection></section><section commented="no" id="id16F4653A10534E89A44AC1D4F33C38B4"><enum>207.</enum><header>Technical and conforming amendments</header><text display-inline="no-display-inline">The Secretary of the Treasury or the Secretary’s delegate shall, not later than 90 days after the
date of the enactment of this Act, submit to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of the
Senate a draft of any technical and conforming changes in the Internal
Revenue Code of 1986 which are necessary to reflect throughout such Code
the purposes of the provisions of, and amendments made by, this title.</text></section></subtitle><subtitle id="id152A85A59913411E9958C28BF5AAD913" style="OLC"><enum>B</enum><header>Corporate tax reforms</header><section id="idFD1D6E3E4DC34BDAB2DC00ADAE8E1A4D"><enum>211.</enum><header>Corporate income tax rate reduction</header><subsection id="id5DC2CAB1429E4EEAB973B1FB4D7EFF51"><enum>(a)</enum><header>In general</header><text>Subsection (b) of section 11 is amended to read as follows:</text><quoted-block act-name="" id="id9323BF17A2E34C8A9294C4D52856939C" style="OLC"><subsection id="idACF0296C035349BC8D7D94B3ACBD603D"><enum>(b)</enum><header>Amount of tax</header><text>The amount of the tax imposed by subsection (a) shall be an amount equal to 17 percent of the
taxable income.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id7D61DCCA940C47D49DDC781DD1337A3C"><enum>(b)</enum><header>Conforming amendment</header><text>Section 1551 is amended—</text><paragraph id="idC13FFAB556134B0EA68913D61998DEE6"><enum>(1)</enum><text>by striking <quote><header-in-text level="section" style="OLC">benefits of the graduated corporate rates and</header-in-text></quote> in the heading,</text></paragraph><paragraph id="id32A3B2DF59B34C20A71FE8C95F9B01E5"><enum>(2)</enum><text>by striking <quote>the benefits of the rates contained in section 11(b) which are lower than the highest rate
specified in such section, or</quote> in subsection (a), and</text></paragraph><paragraph id="id7AA6DA577C6741D0A09484CFCC4C1A9E"><enum>(3)</enum><text>by striking <quote>such benefits or credit</quote> in subsection (a) and inserting <quote>such credit</quote>.</text></paragraph></subsection><subsection id="idFDFED02F91FB440CBA7C6876F00770CD"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text></subsection></section></subtitle><enum>III</enum><header>Refund of excess consumption tax revenue</header><section id="idBE7AE87615A94978AA11EEF82E419975"><enum>301.</enum><header>Refunds of excess consumption tax revenue</header><subsection id="idC6AD125793F741A183C191AA13C1837D"><enum>(a)</enum><header>In general</header><text>Subchapter B of chapter 65 is amended by adding at the end the
following new section:</text><quoted-block display-inline="no-display-inline" id="id8AEAD8092D4D48B4AD8F894866150138" style="OLC"><section id="id67621425D5754283B6F3A465ADCFC1FB"><enum>6433.</enum><header>Refunds of excess consumption tax revenue</header><subsection id="idB3B7D33D85384A7DA724CE2F811A4B8E"><enum>(a)</enum><header>In general</header><text>In the case of any qualifying excess consumption tax revenue year, the Secretary shall pay to each
eligible filer an amount equal to the consumption tax refund amount.</text></subsection><subsection id="id0BA4D3DB16A74A9EA1335BA13C6036A4"><enum>(b)</enum><header>Qualifying excess consumption tax revenue year</header><text>For purposes of this section—</text><paragraph id="idD9F3AA870B184C72B72484394E556654"><enum>(1)</enum><header>In general</header><text>The term <term>qualifying excess consumption tax revenue year</term> means any calendar year for which the net consumption tax revenues exceed 10 percent of gross
domestic product for such year.</text></paragraph><paragraph id="id0511CA9654414E84BD5F4C3541F07621"><enum>(2)</enum><header>Net consumption tax revenues</header><text>The net consumption tax revenues for any calendar year shall be the excess of—</text><subparagraph id="id980BB60B7F214E70B66F57B5238D5084"><enum>(A)</enum><text>the tax imposed under section 3901 with respect to taxable supplies the tax point for which is
during such calendar year, over</text></subparagraph><subparagraph id="id6D1DF1FEA7CE43339FAC8A7CE2882BC7"><enum>(B)</enum><text>the credits allowed under section 3916 for such calendar year.</text></subparagraph></paragraph><paragraph id="idCA69D1C77FAC431CAA143F3ECB161D05"><enum>(3)</enum><header>Gross domestic product</header><text>The gross domestic product for any calendar year shall be the last estimate of the gross domestic
product for such calendar year by the Department of Commerce which is
published before the date that is 3 months after the close of such
calendar year.</text></paragraph></subsection><subsection id="id575368A344E3403DB4E123C8911EEF9F"><enum>(c)</enum><header>Eligible filer</header><text>For purposes of this section—</text><paragraph id="idBDBEBC18B80641868B31C3DF02963BA8"><enum>(1)</enum><header>Definition</header><subparagraph id="id5F75DDBE69D540298EC837758BB80CAD"><enum>(A)</enum><header>In general</header><text>The term <term>eligible filer</term> means, with respect to any qualifying excess consumption tax revenue year, any individual (other
than an individual described in paragraph (2)) who filed a return of
income tax for the individual's qualifying rebate taxable year.</text></subparagraph><subparagraph id="id22FDA160696641D3A7E1E9B03EA68E20"><enum>(B)</enum><header>Exclusion</header><text>The term <term>eligible filer</term> shall not include—</text><clause id="idF727742D25CC4468A794CAA10E38807B"><enum>(i)</enum><text>any nonresident alien individual,</text></clause><clause id="id48D873A44B5244A0B9EF7F26B99BA106"><enum>(ii)</enum><text>any individual who is a dependent (as defined in section 152) of another taxpayer for the
individual's qualifying
rebate taxable year, or</text></clause><clause id="id7A519AB4014449B3BEFC18072C7ABE43"><enum>(iii)</enum><text>an estate or trust.</text></clause></subparagraph></paragraph><paragraph id="id6CD3950826C141CA864AA8C82BE5ED49"><enum>(2)</enum><header>Qualifying rebate taxable year</header><text>The term <term>qualifying rebate taxable year</term> means, with respect to any individual in connection with a qualifying excess consumption tax
revenue year, the taxable year of such individual which contains 6 or more
months of such qualifying excess consumption tax revenue year.</text></paragraph><paragraph id="idE38D6628436F47A096FBC66FFA90060A"><enum>(3)</enum><header>Identification requirement</header><subparagraph id="idAE7B230913D74703956EC4307B69B79D"><enum>(A)</enum><header>In general</header><text>An individual shall not be treated as an eligible filer for any year unless such individual
includes on the return of tax for such year—</text><clause id="id176734469A3A4135B83164194A60F508"><enum>(i)</enum><text>such individual's valid identification number,</text></clause><clause id="id9C2EAD09E8844A7DB9DB4CE0C4E7F232"><enum>(ii)</enum><text>in the case of a joint return, the valid identification number of such individual's spouse, and</text></clause><clause id="id04DC567EE0E544C6B8C7A58BC29A566B"><enum>(iii)</enum><text>the valid identification number of any qualifying child (as defined in section 32(f)) claimed on
such return.</text></clause></subparagraph><subparagraph id="id84ce72800eb042b6b0f5d5909575aa9e"><enum>(B)</enum><header>Valid identification number</header><text>For purposes of subparagraph (A), the term <term>valid identification number</term> means a social security number issued to an individual by the Social Security Administration. Such
term shall not include a TIN issued by the Internal Revenue Service.</text></subparagraph><subparagraph id="id08cc549a141c45a5a7d3333fdc08fbb3"><enum>(C)</enum><header>Special rule for members of the Armed Forces</header><text>Subparagraph (A) shall not apply to a joint return where at least 1 spouse was a member of the
Armed Forces of the United States at any time during the taxable year.</text></subparagraph></paragraph></subsection><subsection id="id55D4C6C54CE04F739D428F71F7D9D405"><enum>(d)</enum><header>Consumption tax refund amount</header><paragraph id="idD678854EEDC4446BAA3BF11D1C8FF752"><enum>(1)</enum><header>In general</header><text>The consumption tax refund amount for any eligible filer for any qualifying excess consumption tax
year shall be the product of—</text><subparagraph id="id56722D781C35452E978C91809D417D33"><enum>(A)</enum><text>the applicable amount, times</text></subparagraph><subparagraph id="idE63A9D51714A4EB383DBB531843C21DD"><enum>(B)</enum><text>the applicable shares of the eligible filer.</text></subparagraph></paragraph><paragraph id="id54C138A39AD0499AB800EBAD5A69DFB7"><enum>(2)</enum><header>Applicable amount</header><text>The applicable amount for any qualifying excess revenue consumption tax year is an amount equal to—</text><subparagraph id="idC69D84D8635E4C3AA048002CC65173F3"><enum>(A)</enum><text>the excess described in subsection (b)(1), divided by</text></subparagraph><subparagraph id="id78B44A0607624566B09D517F27C33AF9"><enum>(B)</enum><text>the total number of applicable shares of all eligible filers for such year.</text></subparagraph></paragraph><paragraph id="idDF93DF42810A454599004472A060605A"><enum>(3)</enum><header>Applicable share</header><text>The number of applicable shares for any eligible filer shall be the sum of—</text><subparagraph id="id93D8C5CDD26445289F1D2313D044E351"><enum>(A)</enum><text>1 (2 in the case of a joint return), plus</text></subparagraph><subparagraph id="id0ECB1A6E94B848DFB1BD32CD2EB97492"><enum>(B)</enum><text>½ of the number of qualifying children (as defined in section 32(f)) claimed on the eligible
filer's return for the filer's qualifying rebate taxable year.</text></subparagraph></paragraph></subsection><subsection id="idB2A261AF7CA24D63991D318E3F60908D"><enum>(e)</enum><header>Time for payment</header><text>Payments under subsection (a) shall be made as soon as practical after the Secretary has determined
the consumption tax refund amount.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id3CE1402049BE4ECEB070B1ADD7266798"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="id56B0060604174F6DA67A4F463D71483C"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/31/1324">Section 1324(b)(2)</external-xref> of title 31, United States Code, is amended by striking <quote>or 6431</quote> and inserting <quote>6431, or 6433</quote>.</text></paragraph><paragraph id="id524208A2EE464001AC31ED312CF6DCF6"><enum>(2)</enum><text>The table of sections for subchapter B of chapter 65 is
amended by adding at the end the following new item:</text><quoted-block id="id8af827bc-8087-4fa4-b75e-13b45e1e181f" style="OLC"><toc><toc-entry idref="id67621425D5754283B6F3A465ADCFC1FB" level="section">Sec. 6433. Refunds of excess consumption tax revenue.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id7D3F81CB352849BBACDB1CC32F8BC776"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to calendar years beginning after the date of the
enactment of this Act.</text>
</subsection></section>