[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 460 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 460

 To amend the Internal Revenue Code of 1986 to impose a minimum tax on 
          certain foreign or foreign controlled corporations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 6, 1993

  Mr. Hunter introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to impose a minimum tax on 
          certain foreign or foreign controlled corporations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fairness and Equity Tax Act of 
1993''.

SEC. 2. MINIMUM TAX ON FOREIGN AND FOREIGN-OWNED CORPORATIONS.

    (a) In General.--Subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 (relating to determination of tax liability) is amended by 
adding at the end thereof the following new part:

     ``PART VIII--MINIMUM TAX ON CERTAIN FOREIGN AND FOREIGN-OWNED 
                              CORPORATIONS

                              ``Sec. 59B. Minimum tax on certain 
                                        foreign and foreign-owned 
                                        corporations.

``SEC. 59B. MINIMUM TAX ON CERTAIN FOREIGN AND FOREIGN-OWNED 
              CORPORATIONS.

    ``(a) Imposition of Tax.--In the case of a corporation to which 
this section applies, there is hereby imposed (in addition to any other 
tax imposed by this subtitle) a tax equal to the excess (if any) of--
            ``(1) 34 percent of the product of--
                    ``(A) 9 percent, and
                    ``(B) the gross receipts of the taxpayer from the 
                sale or leasing of property manufactured by the 
                taxpayer or by any foreign person that is a related 
                party of the taxpayer, over
            ``(2) the aggregate tax imposed under sections 11, 55, and 
        1201 for such year.
    ``(b) Taxpayers to Which Section Applies.--This section shall apply 
to a corporation for the taxable year if such corporation is--
            ``(1) a domestic corporation which is 25-percent foreign-
        owned, or
            ``(2) a foreign corporation engaged in a trade or business 
        within the United States.
    ``(c) Definitions.--For purposes of this section, the term `25-
percent foreign-owned', `foreign person', and `related party' have the 
respective meanings given such terms by section 6038A(c).''
    (b) Clerical Amendment.--The table of parts for such subchapter A 
is amended by adding at the end thereof the following new item:

                              ``Part VIII. Minimum tax on certain 
                                        foreign and foreign-owned 
                                        corporations.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1992.

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