[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7339 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7339

   To exclude six months of earnings in 2009 from Federal income and 
                 payroll taxes, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 10, 2008

Mr. Shadegg (for himself, Mr. Broun of Georgia, Mr. Gohmert, Mr. Burton 
of Indiana, Mr. Westmoreland, Mr. Garrett of New Jersey, Mr. Sali, and 
Mrs. Bachmann) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To exclude six months of earnings in 2009 from Federal income and 
                 payroll taxes, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Taxpayer Holiday Act for 2009''.

SEC. 2. REDUCTION IN FEDERAL INCOME TAX FOR 2009.

    In the case of an individual, for purposes of applying the Internal 
Revenue Code of 1986 for the first taxable year beginning in 2009--
            (1) the taxable income of the taxpayer shall be reduced 
        (but not below zero) by the lesser of--
                    (A) the sum of--
                            (i) all remuneration for services performed 
                        during the first 6 months of such taxable year 
                        by the employee for his employer, including the 
                        cash value of all remuneration (including 
                        benefits) paid in any medium other than cash, 
                        and
                            (ii) self-employment income (as defined in 
                        section 1402 of such Code) for services 
                        performed during the first 6 months of such 
                        taxable year, and
                    (B) $125,000 ($250,000 in the case of a joint 
                return),
            (2) each rate of tax on such taxable income (determined 
        without regard to paragraph (1)) in excess of $125,000 
        ($250,000 in the case of a joint return) shall be reduced by 5 
        percentage points, and
            (3) in the case of a taxpayer whose taxable income does not 
        exceed $125,000 ($250,000 in the case of a joint return) for 
        such taxable year--
                    (A) section 3101 of such Code shall be applied by 
                excluding wages (as defined in section 3121(a) of such 
                Code) received with respect to employment during the 
                first 6 months of such taxable year, and
                    (B) section 1401 of such Code shall be applied by 
                excluding self-employment income (as so defined) for 
                services performed during the first 6 months of such 
                taxable year.
Any credit arising by reason of paragraph (3) shall be treated as a 
credit under section 31(b) of such Code.
                                 <all>