109 HR 5473 IH: Student U.S. House of Representatives 2006-05-24 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.

I 109th CONGRESS 2d Session H. R. 5473 IN THE HOUSE OF REPRESENTATIVES May 24, 2006 Mr. Pascrell introduced the following bill; which was referred to the Committee on Ways and Means A BILL To repeal the increase in tax on unearned income of minor children enacted by the Tax Increase Prevention and Reconciliation Act of 2005.

1.

Short title

This Act may be cited as the Student Savings Act of 2006.

2.

Repeal of tax increase on unearned income of minor children

Section 510 of the Tax Increase Prevention and Reconciliation Act of 2005 (Public Law 109–222), and the amendments made by such section, is hereby repealed. The Internal Revenue Code of 1986 shall be applied and administered as if such section and amendments had never been enacted.

3.

Imposition of individual income tax surcharge

(a)

Imposition of tax

Section 1 of the Internal Revenue Code of 1986 (relating to imposition of tax on individuals) is amended by adding at the end the following new subsection: (j)

Additional income tax

(1)

In general

If the adjusted gross income of the taxpayer exceeds the threshold amount, the tax imposed by this section (determined without regard to this subsection) shall be increased by an amount equal to the applicable percentage of so much of the adjusted gross income as exceeds the threshold amount. (2)

Threshold amounts

For purposes of paragraph (1), the term threshold amount means $1,000,000. (3)

Applicable percentage

For purposes of paragraph (1), the applicable percentage for a taxable year shall be the percentage which the Secretary shall determine will (after the application of paragraph (1)) result in an increase in revenues to the Treasury for the taxable year in an amount equal to the decrease in such revenues by reason of the enactment of section 2 of the Student Savings Act of 2006. (4)

Tax not to apply to estates and trusts

This subsection shall not apply to an estate or trust. . (b)

Coordination with minimum tax

Section 55(c) of such Code (defining regular tax) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: (3)

Coordination with minimum tax

Solely for purposes of this section, section 1(j) shall not apply in computing the regular tax. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2005. (d)

Section 15 Not To apply

The amendments made by this section shall not be treated as a change in a rate of tax for purposes of section 15 of the Internal Revenue Code of 1986.