[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4019 Reported in House (RH)]







                                                 Union Calendar No. 304
109th CONGRESS
  2d Session
                                H. R. 4019

                          [Report No. 109-542]

To amend title 4 of the United States Code to clarify the treatment of 
  self-employment for purposes of the limitation on State taxation of 
                           retirement income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 7, 2005

  Mr. Cannon introduced the following bill; which was referred to the 
                       Committee on the Judiciary

                             June 29, 2006

  Additional sponsors: Mr. English of Pennsylvania, Mr. Sessions, Mr. 
     Keller, Mr. Feeney, Mr. Marchant, Mr. Chabot, Mr. Pence, Mr. 
Hensarling, Mr. Coble, Mr. Forbes, Mr. Baker, Mr. Boucher, Mr. Tanner, 
Mr. Matheson, Mr. Royce, Mr. Holden, Mr. Souder, Ms. Hart, Mr. Price of 
Georgia, Ms. Ginny Brown-Waite of Florida, Mr. Goodlatte, and Mr. Camp 
                              of Michigan

                             June 29, 2006

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
To amend title 4 of the United States Code to clarify the treatment of 
  self-employment for purposes of the limitation on State taxation of 
                           retirement income.

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

<DELETED>SECTION 1. CLARIFICATION OF TREATMENT OF SELF-EMPLOYMENT FOR 
              PURPOSES OF THE LIMITATION ON STATE TAXATION OF 
              RETIREMENT INCOME.</DELETED>

<DELETED>    (a) In General.--Section 114(b)(1)(i) of title 4, United 
States Code, is amended by--</DELETED>
        <DELETED>    (1) inserting ``and any plan, program, or 
        arrangement providing for retirement benefits to a retired 
        partner (treated as such under applicable tax laws)'' after 
        ``section 3121(v)(2)(C) of such Code'',</DELETED>
        <DELETED>    (2) inserting ``which may include income described 
        in subparagraphs (A) through (H)'' after ``(not less frequently 
        than annually'', and</DELETED>
        <DELETED>    (3) adding at the end the following: ``The fact 
        that benefits may be adjusted from time to time pursuant to the 
        plan to limit total disbursements under a predetermined 
        formula, or to provide cost of living or similar adjustments, 
        will not cause the period benefits provided under the plan to 
        fail the `substantially equal period payments' 
        test.''.</DELETED>
<DELETED>    (b) Application.--The amendments made by this section 
apply to amounts received after December 31, 1995.</DELETED>

SECTION 1. CLARIFICATION OF TREATMENT OF SELF-EMPLOYMENT FOR PURPOSES 
              OF THE LIMITATION ON STATE TAXATION OF RETIREMENT INCOME.

    (a) In General.--Section 114(b)(1)(I) of title 4, United States 
Code, is amended--
            (1) by inserting ``(or any plan, program, or arrangement 
        that is in writing, that provides for retirement payments in 
        recognition of prior service to be made to a retired partner, 
        and that is in effect immediately before retirement begins)'' 
        after ``section 3121(v)(2)(C) of such Code'',
            (2) by inserting ``which may include income described in 
        subparagraphs (A) through (H)'' after ``(not less frequently 
        than annually'',
            (3) by adding at the end the following:
                ``The fact that payments may be adjusted from time to 
                time pursuant to such plan, program, or arrangement to 
                limit total disbursements under a predetermined 
                formula, or to provide cost of living or similar 
                adjustments, will not cause the periodic payments 
                provided under such plan, program, or arrangement to 
                fail the `substantially equal periodic payments' 
                test.'', and
            (4) by adding at the end the following:
            ``(4) For purposes of this section, the term `retired 
        partner' is an individual who is described as a partner in 
        section 7701(a)(2) of the Internal Revenue Code of 1986 and who 
        is retired under such individual's partnership agreement.''.
    (b) Application.--The amendments made by this section apply to 
amounts received after December 31, 1995.
                                                 Union Calendar No. 304

109th CONGRESS

  2d Session

                               H. R. 4019

                          [Report No. 109-542]

_______________________________________________________________________

                                 A BILL

To amend title 4 of the United States Code to clarify the treatment of 
  self-employment for purposes of the limitation on State taxation of 
                           retirement income.

_______________________________________________________________________

                             June 29, 2006

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed