3.0.0 1425 2023-01-11T13:35:42Z 2023-01-11T13:35:42Z House HR 2017-03-08 115 [Congressional Record Volume 163, Number 40 (Wednesday, March 8, 2017)]From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]By Mr. HULTGREN:H.R. 1425.Congress has the power to enact this legislation pursuantto the following:Article I, Section 8, Clause 1: The Congress shall havepower to lay and collect taxes, duties, imposts, and excises,to pay the debts and provide for the common defense andgeneral welfare of the United States.Article I, Section 8, Clause 18: To make all Laws whichshall be necessary and proper for carrying into Execution theforegoing Powers, and all other Powers vested by thisConstitution in the Government of the United States, or inany Department or Officer thereof.[Page H1948]]]> hswm00 Ways and Means Committee House Standing Referred to 2017-03-08T15:00:38Z 2017-03-08 Referred to the House Committee on Ways and Means. IntroReferral H11100 2 House floor actions hswm00 Ways and Means Committee 2017-03-08 Introduced in House IntroReferral Intro-H 9 Library of Congress 2017-03-08 Introduced in House IntroReferral 1000 9 Library of Congress H001059 Rep. Hultgren, Randy [R-IL-14] Randy Hultgren R IL 14 N S001195 Rep. Smith, Jason [R-MO-8] Jason Smith R MO 8 2017-03-08 True Taxation Accounting and auditing Business investment and capital Income tax deductions Income tax rates Small business Tax administration and collection, taxpayers Taxation 00 2017-03-08 Introduced in House 2017-03-15T19:08:01Z Bring Small Businesses Back Tax Reform Act

This bill amends the Internal Revenue Code to establish new maximum individual tax rates for qualified business income that does not exceed $1 million (i.e., small business income). The maximum rates are: (1) 12% of such income not exceeding $150,000, and (2) 25% for income that exceeds $150,000 and is not more than $1 million.

The rates apply to up to $1 million of qualified business income that is: (1) gross earnings derived by an individual from any active trade or business carried on by the individual, excluding deductions attributable to the trade or business; or (2) the taxpayer's distributive or pro rata share of pass-through income from entities such as a partnership or S corporation. Qualified business income does not include capital gains, interest, dividends, or royalties.

For taxpayers that are not a corporation or a partnership with a corporation as a partner, the bill repeals the annual limitation on the election to expense certain depreciable business assets.

The bill also permits certain small businesses whose average gross receipts do not exceed $25 million (currently, $5 million) to use the cash accounting method without limitations and exempts such businesses from inventory rules.

]]> Bring Small Businesses Back Tax Reform Act Display Title Bring Small Businesses Back Tax Reform Act Official Title as Introduced To amend the Internal Revenue Code of 1986 to provide a lower rate of tax on a portion of pass-through business income, and for other purposes. Introduced in House IH Short Titles as Introduced Bring Small Businesses Back Tax Reform Act Introduced in House 2017-03-08T05:00:00Z https://www.govinfo.gov/content/pkg/BILLS-115hr1425ih/xml/BILLS-115hr1425ih.xml 2017-03-08 Referred to the House Committee on Ways and Means. 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. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.