110 HR 3948 IH: Share the Sacrifice Act of U.S. House of Representatives 2007-10-23 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 110th CONGRESS 1st Session H. R. 3948 IN THE HOUSE OF REPRESENTATIVES October 23, 2007 Mr. Obey (for himself, Mr. Murtha, Mr. McGovern, Ms. McCollum of Minnesota, Ms. Baldwin, Mr. Stark, Mr. Brady of Pennsylvania, Mr. Moran of Virginia, and Mr. Ellison) 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 establish a temporary surtax to offset the current costs of the Iraq war.

1.

Short title

This Act may be cited as the Share the Sacrifice Act of 2007.

2.

Establishment of temporary Iraq war surtax

(a)

In general

Subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to normal taxes and surtaxes) is amended by adding at the end the following new part: VIII

Temporary Iraq war surtax

Sec. 59B. Temporary Iraq war surtax.

59B.

Temporary Iraq war surtax

(a)

In general

In the case of any taxable year beginning in 2008— (1)

Joint returns

In the case of a joint return with net income tax liability, the tax imposed under this chapter shall be increased by the amount of the surtax determined in accordance with the following table: If net income tax liability is:The surtax is: Not over $10,6002.5% of net income tax liability Over $10,600 but not over $22,600$265, plus 5% of the excess over $10,600 Over $22,600 but not over $36,400$865, plus 11% of the excess over $22,600 Over $36,400$2,383, plus 16% of the excess over $36,400 (2)

Other individuals, trusts, and estates

In the case of any individual, trust, or estate with net income tax liability (other than a joint return), the tax imposed under this chapter shall be increased by the amount of the surtax determined in accordance with the following table: If net income tax liability is:The surtax is: Not over $5,3002.5% of net income tax liability Over $5,300 but not over $11,300$132.50, plus 5% of the excess over $5,300 Over $11,300 but not over $18,200$432.50, plus 11% of the excess over $11,300 Over $18,200$1,191.50, plus 16% of the excess over $18,200 (3)

Corporations

In the case of any corporation with net income tax liability, the tax imposed under this chapter shall be increased by an amount equal to such net income tax liability multiplied by 16 percent. (b)

Certain exceptions for individuals

(1)

Certain exceptions related to military service

(A)

In general

Subsection (a) shall not apply to— (i)any member of the Armed Forces of the United States who received compensation which was excludible from gross income under section 112 (relating to certain combat zone compensation of members of the Armed Forces) during the taxable year involved or any taxable year ending on or after September 11, 2001, or (ii)any individual who received a death gratuity payable under chapter 75 of title 10, United States Code, with respect to any decedent who— (I)is described in clause (i), and (II)died on or after September 11, 2001, and before the close of the taxable year involved. (B)

Joint returns

In the case of a joint return, the taxpayer shall be treated as described in clause (i) or (ii) of subparagraph (A) if either spouse is so described. (2)

Exception based on adjusted gross income

Subsection (a) shall not apply to any individual if the adjusted gross income of the taxpayer is not in excess of $30,000. (c)

Net income tax liability defined

For purposes of this section, the term net income tax liability means the excess of— (1)the sum of the regular tax liability (as defined in section 26(b)) and the tax imposed by section 55, over (2)the credits allowed under part IV (other than sections 31, 33, and 34). (d)

Not treated as tax imposed by this chapter for certain purposes

The tax imposed under this part shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter or for purposes of section 55.

. (b)

Clerical amendment

The table of parts for subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Part VIII. Temporary Iraq war surtax. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2007. (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.