109 HR 5600 IH: To amend the Internal Revenue Code of 1986 to reduce the U.S. House of Representatives 2006-06-13 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. 5600 IN THE HOUSE OF REPRESENTATIVES June 13, 2006 Mr. Pascrell (for himself, Mr. Doyle, Mr. Kucinich, Mr. Bishop of Georgia, Ms. Jackson-Lee of Texas, Mr. Conyers, Mr. Cleaver, and Mr. Wynn) 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 reduce the earned income threshold applicable to the refundable portion of the child tax credit, to increase the age limit for such credit, and to impose an individual income tax surcharge.

1.

Short title

This Act may be cited as the Child Tax Credit Growth Act of 2006.

2.

Reduction in earned income threshold applicable to refundable portion of child tax credit

(a)

Reduction in earned income threshold

Subsection (d)(1)(B)(i) of section 24 of the Internal Revenue Code of 1986 (relating to portion of credit refundable) is amended by striking $10,000 and inserting $5,000. (b)

Repeal of inflation adjustment

Subsection (d) of such section of such Code is amended by striking paragraph (3). (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2006.

3.

Increase in age limit for child tax credit

(a)

In general

Paragraph (1) of section 24(c) of the Internal Revenue Code of 1986 (defining qualifying child) is amended by striking age 17 and inserting age 19. (b)

Effective date

The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2006.

4.

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 an individual exceeds the threshold amount, the tax imposed by this section (determined without regard to this subsection) shall be increased by an amount equal to 0.9 percent of so much of the adjusted gross income as exceeds the threshold amount. (2)

Threshold amount

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

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 the Internal Revenue Code of 1986 (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 imposition of individual income tax surcharge

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, 2006. (d)

Section 15 not to apply

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