110 HR 7339 IH: Taxpayer Holiday Act for U.S. House of Representatives 2008-12-10 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. 7339 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.

1.

Short title

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

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.