110 HR 6614 IH: American Tax Fairness Act of U.S. House of Representatives 2008-07-24 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 110th CONGRESS 2d Session H. R. 6614 IN THE HOUSE OF REPRESENTATIVES July 24, 2008 Mr. Garrett of New Jersey (for himself, Mr. Price of Georgia, Mr. Sullivan, Mrs. Blackburn, Mr. King of Iowa, Mr. Gingrey, Mr. Issa, Ms. Fallin, Mr. Campbell of California, Mr. Kline of Minnesota, and Mr. Westmoreland) 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 repeal the limitation on the amount of foreign earned income excludible from gross income by citizens or residents of the United States living abroad, and for other purposes.

1.

Short title

This Act may be cited as the American Tax Fairness Act of 2008.

2.

Repeal of limitation on the exclusion of foreign earned income by citizens and residents of the United States living abroad

(a)

In general

Subsection (a) of section 911 of the Internal Revenue Code of 1986 is amended to read as follows: (a)

Exclusion from gross income

At the election of a qualified individual, there shall be excluded from the gross income of such individual, and exempt from tax under this subtitle, for any taxable year the foreign earned income of such individual. . (b)

Conforming amendments

(1)Subsection (b) of section 911 of such Code is amended to read as follows: (b)

Foreign earned income

For purposes of this section— (1)

In general

The term foreign earned income with respect to any individual means the amount received by such individual from sources within a foreign country or countries which constitute earned income attributable to services performed by such individual during the period described in subparagraph (A) or (B) of subsection (c)(1), whichever is applicable. (2)

Certain amounts not included in foreign earned income

The foreign earned income for an individual shall not include amounts— (A)received as a pension or annuity, (B)paid by the United States or an agency thereof to an employee of the United States or an agency thereof, (C)included in gross income by reason of section 402(b) (relating to taxability of beneficiary of nonexempt trust) or section 403(c) (relating to taxability of beneficiary under a nonqualified annuity), or (D)received after the close of the taxable year following the taxable year in which the services to which the amounts are attributable are performed. . (2)Section 911 of such Code is amended by striking subsection (c) and redesignating subsections (d) through (g) as subsections (c) through (f), respectively. (3)Subsection (c) of section 911 of such Code (as redesignated under paragraph (2)) is amended— (A)by striking , and in applying subsections (b)(2)(A), (c)(1)(B)(ii), and (c)(2)(A)(ii) with respect to such individual, only the days within such period shall be taken into account in the flush language at the end of paragraph (4), (B)by striking paragraph (7), and (C)by redesignating paragraphs (8) and (9) as paragraphs (7) and (8), respectively. (4)Subparagraph (A) of section 911(c)(7) (as redesignated under paragraphs (2) and (3)) is amended by striking clause (ii) and inserting and at the end of clause (i). (5)Subsection (e) of section 911 of such Code (as redesignated under paragraph (2)) is amended by striking subsection (d)(6) in the flush language at the end and inserting subsection (c)(6). (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

3.

Treasury report on taxation of foreign income

Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall submit to the Congress a report on the United States taxation of foreign income, including— (1)a detailed description of the United States taxation of the foreign income (including earned income, dividends, capital gains, and interest) of United States persons and of foreign persons, (2)the recommendations of the Secretary regarding whether and how such taxation could be restructured and whether any particular forms of such taxation should be terminated, and (3)the recommendations of the Secretary on creative, market-oriented methods to encourage increased repatriation of income invested outside the United States (including any extension of the temporary dividends received deduction under section 965 of the Internal Revenue Code of 1986).