1.Short title; table of contents
(a)This Act may be cited as the
Simplified, Manageable, And
Responsible Tax Act
or the SMART Act
.
(b)
Sec. 1. Short title; table of
contents.
Title I—Tax reduction and
simplification
Sec. 101. Individual income
tax.
Sec. 102. Tax on business
activities.
Sec. 103. Simplification of
rules relating to qualified retirement plans.
Sec. 104. Repeal of alternative
minimum tax.
Sec. 105. Repeal of
credits.
Sec. 106. Repeal of estate and
gift taxes and obsolete income tax provisions.
Sec. 107. Effective
date.
Title II—Supermajority required
for tax changes
Sec. 201. Supermajority
required.
<enum>I</enum><header display-inline="yes-display-inline">Tax reduction and simplification</header>
<section commented="no" display-inline="no-display-inline" id="IDCF06EB21ACAA407584DF077BED22A829" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Individual income tax</header>
<subsection commented="no" display-inline="no-display-inline" id="ID72CD0A2A760C40FCA46153D30023B82E"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/1">Section 1</external-xref> of the Internal Revenue Code
of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="ID593DE2207D524ABBAD2962D3C51BAF94" style="OLC">
<section commented="no" display-inline="no-display-inline" id="ID714771B8D5A84C3CA1C414656F9E12D5" section-type="section-one"><enum>1.</enum><header display-inline="yes-display-inline">Tax imposed</header><text display-inline="no-display-inline">There is hereby imposed on the taxable
income of every individual a tax equal to 17 percent of the taxable income of
such individual for such taxable
year.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID4637FAA1C98444799B0095258B77CCE9"><enum>(b)</enum><header display-inline="yes-display-inline">Taxable
income</header><text display-inline="yes-display-inline">Section 63 of such
Code is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="ID40C4DADF78894F27B154FB7FD63EF1FA" style="OLC">
<section commented="no" display-inline="no-display-inline" id="ID664380E6818D42F1BDF992EBC1FC2D42" section-type="subsequent-section"><enum>63.</enum><header display-inline="yes-display-inline">Taxable income</header>
<subsection commented="no" display-inline="no-display-inline" id="ID0F8DAD2EF1ED4BD1801E7D00F9990049"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this subtitle, the term
<term>taxable income</term> means the excess of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDC11FC81DD03846CD9299394E2D066E08"><enum>(1)</enum><text display-inline="yes-display-inline">the sum of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDCAAE4E327C18449189DB9642942B5B99"><enum>(A)</enum><text display-inline="yes-display-inline">wages (as defined in section 3121(a)
without regard to paragraph (1) thereof) which are paid in cash and which are
received during the taxable year for services performed in the United
States,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID34C53E6B6363458EA6633059199C2B4E"><enum>(B)</enum><text display-inline="yes-display-inline">retirement distributions which are
includible in gross income for such taxable year, plus</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2A1D1B88525F4CB39488ADABCC3B9D37"><enum>(C)</enum><text display-inline="yes-display-inline">amounts received under any law of the
United States or of any State which is in the nature of unemployment
compensation, over</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0C7E09CB5D564B8EA5D2BE967961007B"><enum>(2)</enum><text display-inline="yes-display-inline">the standard deduction.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID6E949031B18A4753B0AC8D083C878127"><enum>(b)</enum><header display-inline="yes-display-inline">Standard deduction</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID4EC55E70F1264B1500D650434CDC6B93"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this subtitle, the term
<term>standard deduction</term> means the sum of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDB7CC35D4299E49B68C64B76C44E15BA4"><enum>(A)</enum><text display-inline="yes-display-inline">the basic standard deduction, plus</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID04AE20525B9A47FE93CEFEE12C217F6B"><enum>(B)</enum><text display-inline="yes-display-inline">the additional standard deduction.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2076D843A95844CF81BDCE00525C51EF"><enum>(2)</enum><header display-inline="yes-display-inline">Basic standard deduction</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the basic
standard deduction is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDCD215C1B5ECF40E695A5E9B338C603BA"><enum>(A)</enum><text display-inline="yes-display-inline">$26,180 in the case of—</text>
<clause commented="no" display-inline="no-display-inline" id="ID8D8F694034FB47BBBFAAB19BBB57A76E"><enum>(i)</enum><text display-inline="yes-display-inline">a joint return, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID1485AECBD61D45FF891124E38DF1E8A1"><enum>(ii)</enum><text display-inline="yes-display-inline">a surviving spouse (as defined in section
2(a)),</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID838901109C0341338100CD7E3B5C97C9"><enum>(B)</enum><text display-inline="yes-display-inline">$16,710 in the case of a head of household
(as defined in section 2(b)), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID66C2B57BAB3343429EEBCA1BE4BCEFD8"><enum>(C)</enum><text display-inline="yes-display-inline">$13,090 in the case of an
individual—</text>
<clause commented="no" display-inline="no-display-inline" id="IDC5582F702CAD4BEC9883040700AB1415"><enum>(i)</enum><text display-inline="yes-display-inline">who is not married and who is not a
surviving spouse or head of household, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID2F1DC933F7E04A2AB7C500EE760002A5"><enum>(ii)</enum><text display-inline="yes-display-inline">who is a married individual filing a
separate return.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1AFB9DDBC2FD42FDAE23A0A53FFEA3B0"><enum>(3)</enum><header display-inline="yes-display-inline">Additional standard deduction</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the
additional standard deduction is $5,640 for each dependent (as defined in
section 152) who is described in section 151(c) for the taxable year and who is
not required to file a return for such taxable year.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID18242CB2D49D46ECAFF6CE5138532400"><enum>(c)</enum><header display-inline="yes-display-inline">Retirement distributions</header><text display-inline="yes-display-inline">For purposes of subsection (a), the term
<term>retirement distribution</term> means any distribution from—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID36A8C322EBFB4EC8B89CEA1328185476"><enum>(1)</enum><text display-inline="yes-display-inline">a plan described in section 401(a) which
includes a trust exempt from tax under section 501(a),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID21C334CF692742C08698C8A9008CAB3F"><enum>(2)</enum><text display-inline="yes-display-inline">an annuity plan described in section
403(a),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2B06D33F6DAF4C7EA8C5C64E0295E1DF"><enum>(3)</enum><text display-inline="yes-display-inline">an annuity contract described in section
403(b),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID69BE0650E1A046EC00C7A28117B742C3"><enum>(4)</enum><text display-inline="yes-display-inline">an individual retirement account described
in section 408(a),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3CB1040F8D8642269C92EA399EC8A978"><enum>(5)</enum><text display-inline="yes-display-inline">an individual retirement annuity described
in section 408(b),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDF8295A4E695E42AC845167A9D9009DA4"><enum>(6)</enum><text display-inline="yes-display-inline">an eligible deferred compensation plan (as
defined in section 457),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1A42C7DA3CB64242840044A02B59E7C4"><enum>(7)</enum><text display-inline="yes-display-inline">a governmental plan (as defined in section
414(d)), or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDF6A494E22F84416BBFB14725DF882C51"><enum>(8)</enum><text display-inline="yes-display-inline">a trust described in section
501(c)(18).</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">Such term includes any plan,
contract, account, annuity, or trust which, at any time, has been determined by
the Secretary to be such a plan, contract, account, annuity, or trust.</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="ID935E77A71DFE49C4AC7DCFD3BE460902"><enum>(d)</enum><header display-inline="yes-display-inline">Income of certain children</header><text display-inline="yes-display-inline">For purposes of this subtitle—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID2216E6468C40432E899C59DE00C019E6"><enum>(1)</enum><text display-inline="yes-display-inline">an individual’s taxable income shall
include the taxable income of each dependent child of such individual who has
not attained age 14 as of the close of such taxable year, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID14220D4318484683A35E825B3057122E"><enum>(2)</enum><text display-inline="yes-display-inline">such dependent child shall have no
liability for tax imposed by section 1 with respect to such income and shall
not be required to file a return for such taxable year.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDB9C28F4EB56445AEA690FFA45CF21B5B"><enum>(e)</enum><header display-inline="yes-display-inline">Inflation adjustment</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID0ABB8F0CCE454D3A9CA3D5FB6712DFC5"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any taxable year beginning
in a calendar year after 2010, each dollar amount contained in subsection (b)
shall be increased by an amount determined by the Secretary to be equal
to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDD043862FFF794E7EA0C5CAE78F6FC131"><enum>(A)</enum><text display-inline="yes-display-inline">such dollar amount, multiplied by</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID10CED255101243AB871F096C40C6717B"><enum>(B)</enum><text display-inline="yes-display-inline">the cost-of-living adjustment for such
calendar year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID77D19382ED704EF2A9F9ABF0B3C9C3AD"><enum>(2)</enum><header display-inline="yes-display-inline">Cost-of-living adjustment</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the
cost-of-living adjustment for any calendar year is the percentage (if any) by
which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID1EA392ED244A401DA200EB7DECFF8BEE"><enum>(A)</enum><text display-inline="yes-display-inline">the CPI for the preceding calendar year,
exceeds</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID07F47FC717304A87A5450538B26DD7B4"><enum>(B)</enum><text display-inline="yes-display-inline">the CPI for the calendar year 2009.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID91B59741992740E782C317D77821B105"><enum>(3)</enum><header display-inline="yes-display-inline">CPI for any calendar year</header><text display-inline="yes-display-inline">For purposes of paragraph (2), the CPI for
any calendar year is the average of the Consumer Price Index as of the close of
the 12-month period ending on August 31 of such calendar year.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5C5934EFB5014BD2BAE2D7AD11AA177B"><enum>(4)</enum><header display-inline="yes-display-inline">Consumer Price Index</header><text display-inline="yes-display-inline">For purposes of paragraph (3), the term
<term>Consumer Price Index</term> means the last Consumer Price Index for
all-urban consumers published by the Department of Labor. For purposes of the
preceding sentence, the revision of the Consumer Price Index which is most
consistent with the Consumer Price Index for calendar year 1986 shall be
used.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDD8A15CB863AB4DFF8D004B6CF2368476"><enum>(5)</enum><header display-inline="yes-display-inline">Rounding</header><text display-inline="yes-display-inline">If any increase determined under paragraph
(1) is not a multiple of $10, such increase shall be rounded to the next
highest multiple of $10.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDB5842E1F9FBD44DEA03EBD83F4DF7BC0"><enum>(f)</enum><header display-inline="yes-display-inline">Marital
status</header><text display-inline="yes-display-inline">For purposes of this
section, marital status shall be determined under section
7703.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID71C0FD97BB1C4A4186E04D5080A4DB36" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Tax on business activities</header>
<subsection commented="no" display-inline="no-display-inline" id="ID27291820F8BB4E3B83EE4C9FF93C1641"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/11">Section 11</external-xref> of the Internal Revenue
Code of 1986 (relating to tax imposed on corporations) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="ID12FAE163185246779B656540005287B9" style="OLC">
<section commented="no" display-inline="no-display-inline" id="ID0AE0F67FE9E047F4A39346DF50D59879" section-type="subsequent-section"><enum>11.</enum><header display-inline="yes-display-inline">Tax imposed on business activities</header>
<subsection commented="no" display-inline="no-display-inline" id="IDEF04C9D2214540A69C07EB9E3DCC9DBA"><enum>(a)</enum><header display-inline="yes-display-inline">Tax imposed</header><text display-inline="yes-display-inline">There is hereby imposed on every person
engaged in a business activity a tax equal to 17 percent of the business
taxable income of such person.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID19B2BBD34ABA465292975DC55CB231C7"><enum>(b)</enum><header display-inline="yes-display-inline">Liability for tax</header><text display-inline="yes-display-inline">The tax imposed by this section shall be
paid by the person engaged in the business activity, whether such person is an
individual, partnership, corporation, or otherwise.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDD00973A2ACF64063967D33DF7EA4FB6C"><enum>(c)</enum><header display-inline="yes-display-inline">Business taxable income</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID53E8EB26527B426DBAD9C3F47584DD56"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>business taxable
income</term> means gross active income reduced by the deductions specified in
subsection (d).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDDB52D8BD6D6D4B14BD37D08CAEF8CD02"><enum>(2)</enum><header display-inline="yes-display-inline">Gross active income</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDFAE2689D9DF64E6785AA691FB0E7BE29"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the term
<term>gross active income</term> means gross receipts from—</text>
<clause commented="no" display-inline="no-display-inline" id="ID6EABB704D02D44C4A34060AD7674215C"><enum>(i)</enum><text display-inline="yes-display-inline">the sale or exchange of property or
services in the United States by any person in connection with a business
activity, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID52B8F61B416B40AEA8BA0028DC28F421"><enum>(ii)</enum><text display-inline="yes-display-inline">the export of property or services from the
United States in connection with a business activity.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDD491FD39A557435CA86180ECE8466BF6"><enum>(B)</enum><header display-inline="yes-display-inline">Exchanges</header><text display-inline="yes-display-inline">For purposes of this section, the amount
treated as gross receipts from the exchange of property or services is the fair
market value of the property or services received, plus any money
received.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDA0E81B9618DA4C56A4BE0209EB09AD28"><enum>(C)</enum><header display-inline="yes-display-inline">Coordination with special rules for
financial services, etc</header><text display-inline="yes-display-inline">Except as provided in subsection
(e)—</text>
<clause commented="no" display-inline="no-display-inline" id="IDF644BFCF34F8443DBAB9B84206754079"><enum>(i)</enum><text display-inline="yes-display-inline">the term <term>property</term> does not
include money or any financial instrument, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID51C7ED730D4E49280074B6D05053B784"><enum>(ii)</enum><text display-inline="yes-display-inline">the term <term>services</term> does not
include financial services.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6C9B152CAD1649209DF364DC59BE8020"><enum>(3)</enum><header display-inline="yes-display-inline">Exemption from tax for activities of
governmental entities and tax-exempt organizations</header><text display-inline="yes-display-inline">For
purposes of this section, the term <term>business activity</term> does not
include any activity of a governmental entity or of any other organization
which is exempt from tax under this chapter.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID271BFFF29620446A83DCD37062BF9603"><enum>(d)</enum><header display-inline="yes-display-inline">Deductions</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDBB66CA797F60447BBA4B588D1B93EFAD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The deductions specified in this subsection
are—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID83224FB12FF7444497DBFC64B948993C"><enum>(A)</enum><text display-inline="yes-display-inline">the cost of business inputs for the
business activity,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDC4C00E32E6C14718BBE5D5190013D2EB"><enum>(B)</enum><text display-inline="yes-display-inline">wages (as defined in section 3121(a)
without regard to paragraph (1) thereof) which are paid in cash for services
performed in the United States as an employee, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDD0CDA47A12E34FB480B7CDCAFDE7EAD9"><enum>(C)</enum><text display-inline="yes-display-inline">retirement contributions to or under any
plan or arrangement which makes retirement distributions (as defined in section
63(c)) for the benefit of such employees to the extent such contributions are
allowed as a deduction under section 404.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDA45E9E9BEBA64512A3B4BE2776A4DB41"><enum>(2)</enum><header display-inline="yes-display-inline">Business inputs</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID0425D5319A0A4C57A706B84414ED1E71"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the term
<term>cost of business inputs</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="ID1A5FA6CB08F5495FA553A5BC5EB916EC"><enum>(i)</enum><text display-inline="yes-display-inline">the amount paid for property sold or used
in connection with a business activity,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDD8DAEED4E501448CB23759CB000643D9"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount paid for services (other than
for the services of employees, including fringe benefits paid by reason of such
services) in connection with a business activity, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID00AF23E780204966913EF36B4B349F6E"><enum>(iii)</enum><text display-inline="yes-display-inline">any excise tax, sales tax, customs duty, or
other separately stated levy imposed by a Federal, State, or local government
on the purchase of property or services which are for use in connection with a
business activity.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">Such term shall not include any
tax imposed by chapter 2 or 21.</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID651BF9EBA2DC44A984885CA4DCFA7DD4"><enum>(B)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">Such term shall not include—</text>
<clause commented="no" display-inline="no-display-inline" id="IDA6F86847E021437997F5D9C2CA35B320"><enum>(i)</enum><text display-inline="yes-display-inline">items described in subparagraphs (B) and
(C) of paragraph (1), and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDCEE116CC40E942ED83DE4556C7B9633B"><enum>(ii)</enum><text display-inline="yes-display-inline">items for personal use not in connection
with any business activity.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDA8B07C15300142A9A52024FABE01D4EA"><enum>(C)</enum><header display-inline="yes-display-inline">Exchanges</header><text display-inline="yes-display-inline">For purposes of this section, the amount
treated as paid in connection with the exchange of property or services is the
fair market value of the property or services exchanged, plus any money
paid.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID208B4E2644ED4866A20086414F238412"><enum>(e)</enum><header display-inline="yes-display-inline">Special rules for financial intermediation
service activities</header><text display-inline="yes-display-inline">In the
case of the business activity of providing financial intermediation services,
the taxable income from such activity shall be equal to the value of the
intermediation services provided in such activity.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID3EF0F323E229456FAE833ECF64155D1C"><enum>(f)</enum><header display-inline="yes-display-inline">Exception for services performed as
employee</header><text display-inline="yes-display-inline">For purposes of this
section, the term <term>business activity</term> does not include the
performance of services by an employee for the employee’s employer.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID2903E86512DA4DB59C249CF8A643BB97"><enum>(g)</enum><header display-inline="yes-display-inline">Carryover of credit-equivalent of excess
deductions</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID5353630FFA1845C5B3261CAA52E1FF56"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If the aggregate deductions for any taxable
year exceed the gross active income for such taxable year, the
credit-equivalent of such excess shall be allowed as a credit against the tax
imposed by this section for the following taxable year.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDB144269FBE73409497CA97BD16B16631"><enum>(2)</enum><header display-inline="yes-display-inline">Credit-equivalent of excess
deductions</header><text display-inline="yes-display-inline">For purposes of
paragraph (1), the credit-equivalent of the excess described in paragraph (1)
for any taxable year is an amount equal to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID4664A0FE0BEA4364A44D8391DE84327E"><enum>(A)</enum><text display-inline="yes-display-inline">the sum of—</text>
<clause commented="no" display-inline="no-display-inline" id="ID45F5A5CEC36F44A88E11866876043407"><enum>(i)</enum><text display-inline="yes-display-inline">such excess, plus</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID75F90C70AF0241A596DFE1BA005FEE4F"><enum>(ii)</enum><text display-inline="yes-display-inline">the product of such excess and the 3-month
Treasury rate for the last month of such taxable year, multiplied by</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID776B12DCE67D465097D015F603738100"><enum>(B)</enum><text display-inline="yes-display-inline">the rate of the tax imposed by subsection
(a) for such taxable year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3430014A3E084EF08446F009F0DBFB9B"><enum>(3)</enum><header display-inline="yes-display-inline">Carryover of unused credit</header><text display-inline="yes-display-inline">If the credit allowable for any taxable
year by reason of this subsection exceeds the tax imposed by this section for
such year, then (in lieu of treating such excess as an overpayment) the sum
of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID382E42E35C5F49B8A56CEBB79D2BDA78"><enum>(A)</enum><text display-inline="yes-display-inline">such excess, plus</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDFBEA145E6A634CBAA8CB00222FE56D13"><enum>(B)</enum><text display-inline="yes-display-inline">the product of such excess and the 3-month
Treasury rate for the last month of such taxable year, shall be allowed as a
credit against the tax imposed by this section for the following taxable
year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9345525AA6AD4787A3A9A4B122E5DE22"><enum>(4)</enum><header display-inline="yes-display-inline">3-month Treasury rate</header><text display-inline="yes-display-inline">For purposes of this subsection, the
3-month Treasury rate is the rate determined by the Secretary based on the
average market yield (during any 1-month period selected by the Secretary and
ending in the calendar month in which the determination is made) on outstanding
marketable obligations of the United States with remaining periods to maturity
of 3 months or
less.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID4ED6A6AEFCAC4B22B95144B5825FA595"><enum>(b)</enum><header display-inline="yes-display-inline">Tax on tax-exempt entities providing
noncash compensation to employees</header><text display-inline="yes-display-inline">Section 4977 of such Code is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="IDFA63D0EEA5254469812E5201A6430468" style="OLC">
<section commented="no" display-inline="no-display-inline" id="ID8236790653794F3C8DF30086334CDFE8" section-type="subsequent-section"><enum>4977.</enum><header display-inline="yes-display-inline">Tax on noncash compensation provided to
employees not engaged in business activity</header>
<subsection commented="no" display-inline="no-display-inline" id="ID803C0F12A2E04F56B995FB5CC3287C10"><enum>(a)</enum><header display-inline="yes-display-inline">Imposition of tax</header><text display-inline="yes-display-inline">There is hereby imposed a tax equal to 17
percent of the value of excludable compensation provided during the calendar
year by an employer for the benefit of employees to whom this section
applies.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDF0F4A27DB13C456FAE4781091E8CAF5D"><enum>(b)</enum><header display-inline="yes-display-inline">Liability for tax</header><text display-inline="yes-display-inline">The tax imposed by this section shall be
paid by the employer.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID87DC9A1FFDEB4B51BDB9FCEEA11FF574"><enum>(c)</enum><header display-inline="yes-display-inline">Excludable compensation</header><text display-inline="yes-display-inline">For purposes of subsection (a), the term
<term>excludable compensation</term> means any remuneration for services
performed as an employee other than—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID86F04F977E174365A1A1ED9F1307FAA1"><enum>(1)</enum><text display-inline="yes-display-inline">wages (as defined in section 3121(a)
without regard to paragraph (1) thereof) which are paid in cash,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDC189FB3F664A43A0B3152B5200189575"><enum>(2)</enum><text display-inline="yes-display-inline">remuneration for services performed outside
the United States, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDE90BCEC9E3B54940BBCD00D783C4C945"><enum>(3)</enum><text display-inline="yes-display-inline">retirement contributions to or under any
plan or arrangement which makes retirement distributions (as defined in section
63(c)).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID82D3AD785A784650B9230004C423F6E1"><enum>(d)</enum><header display-inline="yes-display-inline">Employees to whom section
applies</header><text display-inline="yes-display-inline">This section shall
apply to an employee who is employed in any activity by—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDD5F22D817AC34A74AB840119345F5C00"><enum>(1)</enum><text display-inline="yes-display-inline">any organization which is exempt from
taxation under this chapter, or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6EB4FAA8212F4836B167861CDF541520"><enum>(2)</enum><text display-inline="yes-display-inline">any agency or instrumentality of the United
States, any State or political subdivision of a State, or the District of
Columbia.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDB82CFE578AC64FC10061A154C7BB5C2D" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">Simplification of rules relating to
qualified retirement plans</header>
<subsection commented="no" display-inline="no-display-inline" id="ID1D3C2C0902C14272BCA99BF716BEF7F9"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The following provisions of the Internal
Revenue Code of 1986 are hereby repealed:</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID1A2E96266FDB441697BB586B4F760044"><enum>(1)</enum><header display-inline="yes-display-inline">Nondiscrimination rules</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDAB894CA6CD2A47AA9F00D3F3901E3EB0"><enum>(A)</enum><text display-inline="yes-display-inline">Paragraphs (4) and (5) of section 401(a)
(relating to nondiscrimination requirements).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID27539914701D4CBC9F003C79379CB882"><enum>(B)</enum><text display-inline="yes-display-inline">Sections 401(a)(10)(B) and 416 (relating to
top heavy plans).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDCF55037A34224239951CD64E09BE7874"><enum>(C)</enum><text display-inline="yes-display-inline">Section 401(a)(17) (relating to
compensation limit).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6FD438BBE9324EB2A469B5CC2517B56C"><enum>(D)</enum><text display-inline="yes-display-inline">Sections 401(a)(26) and 410(b) (relating to
minimum participation and coverage requirements).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDB4F8C58CCF934A3D81B2996BC1D4F6E1"><enum>(E)</enum><text display-inline="yes-display-inline">Paragraphs (3), (8), (11), and (12) of
sections 401(k), and section 4979, (relating to actual deferral
percentage).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0DD6F018148A41E2A8105270C470291D"><enum>(F)</enum><text display-inline="yes-display-inline">Section 401(l) (relating to permitted
disparity in plan contributions or benefits).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7A08B49DBB8E4E1C8675F9CB99963837"><enum>(G)</enum><text display-inline="yes-display-inline">Section 401(m) (relating to
nondiscrimination test for matching contributions and employee
contributions).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDA44759165B034AAA8EC61F4C8EEF965F"><enum>(H)</enum><text display-inline="yes-display-inline">Paragraphs (1)(D) and (12) of section
403(b) (relating to nondiscrimination requirements).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDD8934FA189934EF9B53B1D4C7BA91C57"><enum>(I)</enum><text display-inline="yes-display-inline">Paragraph (3) of section 408(k) and
paragraph (6) (other than subparagraph (A)(i)) of such section (relating to
simplified employee pensions).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID05A99F4BC8384FA8A3814351C8477DF8"><enum>(2)</enum><header display-inline="yes-display-inline">Contribution limits</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID56F285F6ADBA4FE2BF41DA447D07B836"><enum>(A)</enum><text display-inline="yes-display-inline">Sections 401(a)(16), 403(b) (2) and (3),
and 415 (relating to limitations on benefits and contributions under qualified
plans).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID05C8834BE82942D5B833AEF0C6628B59"><enum>(B)</enum><text display-inline="yes-display-inline">Sections 401(a)(30) and 402(g) (relating to
limitation on exclusion for elective deferrals).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDC80A7B9CFDDE45E7916DD000B4007562"><enum>(C)</enum><text display-inline="yes-display-inline">Paragraphs (3) and (7) of section 404(a)
(relating to percentage of compensation limits).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDD20F88EF7C8C46068BE8DBDDB513003F"><enum>(D)</enum><text display-inline="yes-display-inline">Section 404(l) (relating to limit on
includible compensation).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID452EF8102C1447E28417A97CB320FBAC"><enum>(3)</enum><header display-inline="yes-display-inline">Restrictions on distributions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID540025833F154E7A00B1553C4CD17EBF"><enum>(A)</enum><text display-inline="yes-display-inline">Section 72(t) (relating to 10-percent
additional tax on early distributions from qualified retirement plans).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID21D3940F7A1C482AA700AA6D82D0B9A2"><enum>(B)</enum><text display-inline="yes-display-inline">Sections 401(a)(9), 403(b)(10), and 4974
(relating to minimum distribution rules).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDA771CF96C11547F0B0489DA30298DCCE"><enum>(C)</enum><text display-inline="yes-display-inline">Section 402(e)(4) (relating to net
unrealized appreciation).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID044FA77F36534D8CA2639517A5EB8003"><enum>(4)</enum><header display-inline="yes-display-inline">Special requirements for plan benefitting
self-employed individuals</header><text display-inline="yes-display-inline">Subsections (a)(10)(A) and (d) of section
401.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID40DCE800E1794224AA1124DE4E5E1D38"><enum>(5)</enum><header display-inline="yes-display-inline">Prohibition of tax-exempt organizations and
governments from having qualified cash or deferred arrangements</header><text display-inline="yes-display-inline">Section 401(k)(4)(B).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID00E6E8FD6934491CBF41915CC7ED75C7"><enum>(b)</enum><header display-inline="yes-display-inline">Employer reversions of excess pension
assets permitted subject only to income inclusion</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDA8D2FF1865ED4E20804476001615811B"><enum>(1)</enum><header display-inline="yes-display-inline">Repeal of tax on employer
reversions</header><text display-inline="yes-display-inline">Section 4980 of
such Code is hereby repealed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDEE432467FCC945389EEFFDC7BB001C56"><enum>(2)</enum><header display-inline="yes-display-inline">Employer reversions permitted without plan
termination</header><text display-inline="yes-display-inline">Section 420 of
such Code is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="ID44D9C6AEA00243BDB3D9EEC011370016" style="OLC">
<section commented="no" display-inline="no-display-inline" id="IDEB0D1500182E49278EEA7600588183CB" section-type="subsequent-section"><enum>420.</enum><header display-inline="yes-display-inline">Transfers of excess pension assets</header>
<subsection commented="no" display-inline="no-display-inline" id="IDBEF599BEC70F41BAAA78008FB1E703AC"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If there is a qualified transfer of any
excess pension assets of a defined benefit plan (other than a multiemployer
plan) to an employer—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID2056109C324C48A5A4A73413B0065021"><enum>(1)</enum><text display-inline="yes-display-inline">a trust which is part of such plan shall
not be treated as failing to meet the requirements of section 401(a) or any
other provision of law solely by reason of such transfer (or any other action
authorized under this section), and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7CC754896F0849C1AAF8FFB1005D116D"><enum>(2)</enum><text display-inline="yes-display-inline">such transfer shall not be treated as a
prohibited transaction for purposes of section 4975.</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">The gross income of the employer
shall include the amount of any qualified transfer made during the taxable
year.</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="ID47393598A9E54083B2B701A600FE3F7B"><enum>(b)</enum><header display-inline="yes-display-inline">Qualified transfer</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDA8023882AE19426384E222F93075C3FD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified transfer</term>
means a transfer—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID0A3AE84A611A4F2B9B619F7F2F1F3242"><enum>(A)</enum><text display-inline="yes-display-inline">of excess pension assets of a defined
benefit plan to the employer, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID1032B531C00F467AB19D138424F06D58"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to which the vesting
requirements of subsection (c) are met in connection with the plan.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID166B452389F043D5BAEA7899E7567655"><enum>(2)</enum><header display-inline="yes-display-inline">Only 1 transfer per year</header><text display-inline="yes-display-inline">No more than 1 transfer with respect to any
plan during a taxable year may be treated as a qualified transfer for purposes
of this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID9D1F2DC6A1F4427FB54CBAC9E0F6E160"><enum>(c)</enum><header display-inline="yes-display-inline">Vesting requirements of plans transferring
assets</header><text display-inline="yes-display-inline">The vesting
requirements of this subsection are met if the plan provides that the accrued
pension benefits of any participant or beneficiary under the plan become
nonforfeitable in the same manner which would be required if the plan had
terminated immediately before the qualified transfer (or in the case of a
participant who separated during the 1-year period ending on the date of the
transfer, immediately before such separation).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID575CA2714BCA43EE8796A2DB6CE40600"><enum>(d)</enum><header display-inline="yes-display-inline">Definition and special rule</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID13A596DD9D6B450D0099B97FF7EED627"><enum>(1)</enum><header display-inline="yes-display-inline">Excess pension assets</header><text display-inline="yes-display-inline">The term <term>excess pension assets</term>
means the excess (if any) of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDE9AC1BA7BCEA471C819F762F327CD1B9"><enum>(A)</enum><text display-inline="yes-display-inline">the amount determined under section
412(c)(7)(A)(ii), over</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID5D3062D1C4B148D8B7F532D002FAC9D9"><enum>(B)</enum><text display-inline="yes-display-inline">the greater of—</text>
<clause commented="no" display-inline="no-display-inline" id="ID85EB78E694AD4A57884D5D8E789F558D"><enum>(i)</enum><text display-inline="yes-display-inline">the amount determined under section
412(c)(7)(A)(i), or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID673254BA4D664995AAD2A6DA45C023A4"><enum>(ii)</enum><text display-inline="yes-display-inline">125 percent of current liability (as
defined in section 412(c)(7)(B)).</text>
</clause></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">The determination under this
paragraph shall be made as of the most recent valuation date of the plan
preceding the qualified transfer.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDA75165570BE2423E846C8735547130A2"><enum>(2)</enum><header display-inline="yes-display-inline">Coordination with section 412</header><text display-inline="yes-display-inline">In the case of a qualified transfer—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID7B6259C11E2644A8B2F8B3B9F64654A7"><enum>(A)</enum><text display-inline="yes-display-inline">any assets transferred in a plan year on or
before the valuation date for such year (and any income allocable thereto)
shall, for purposes of section 412, be treated as assets in the plan as of the
valuation date for such year, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDF65CE57F0D5C4A9E8E8716D0DFF8C49C"><enum>(B)</enum><text display-inline="yes-display-inline">the plan shall be treated as having a net
experience loss under section 412(b)(2)(B)(iv) in an amount equal to the amount
of such transfer and for which amortization charges begin for the first plan
year after the plan year in which such transfer occurs, except that such
section shall be applied to such amount by substituting <quote>10 plan
years</quote> for <quote>5 plan
years</quote>.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="IDBD8C5162CFBB4602BEE092FC3DD5E540" section-type="subsequent-section"><enum>104.</enum><header display-inline="yes-display-inline">Repeal of alternative minimum
tax</header><text display-inline="no-display-inline">Part VI of subchapter A of
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter
1</external-xref> of the Internal Revenue Code of 1986 is hereby
repealed.</text>
</section><section commented="no" display-inline="no-display-inline" id="IDA44CD39EA91C455C87715B1BBE9F9C52" section-type="subsequent-section"><enum>105.</enum><header display-inline="yes-display-inline">Repeal of credits</header><text display-inline="no-display-inline">Part IV of subchapter A of
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter
1</external-xref> of the Internal Revenue Code of 1986 is hereby
repealed.</text>
</section><section commented="no" display-inline="no-display-inline" id="ID50F5F9E687754733B16BF1C49666EBE3" section-type="subsequent-section"><enum>106.</enum><header display-inline="yes-display-inline">Repeal of estate and gift taxes and
obsolete income tax provisions</header>
<subsection commented="no" display-inline="no-display-inline" id="ID8FFB20D112B14799AC00CC00BEEB4E4E"><enum>(a)</enum><header display-inline="yes-display-inline">Repeal of estate and gift taxes</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID7E641AA3F5004F0693DDF924463DA300"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subtitle B of the Internal Revenue Code of
1986 is hereby repealed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3E87F584BBF0489D8B266E55BC567E2F"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The repeal made by
paragraph (1) shall apply to the estates of decedents dying, and gifts and
generation-skipping transfers made, after December 31, 2009.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDA1D4B5F913E24528B661B444ADBCC474"><enum>(b)</enum><header display-inline="yes-display-inline">Repeal of obsolete income tax
provisions</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID2CA24F91CEB340DF9DA4F51D2801FCFE"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2),
chapter 1 of the Internal Revenue Code of 1986 is hereby repealed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9B65E8225B314B6C9879E0BC6ED4C34D"><enum>(2)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID8A5968B0F06F46F688BD5400AD2DA9EA"><enum>(A)</enum><text display-inline="yes-display-inline">sections 1, 11, and 63 of such Code, as
amended by this Act,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID1C2EC6615AF049C8B4144D5B677543B0"><enum>(B)</enum><text display-inline="yes-display-inline">those provisions of chapter 1 of such Code
which are necessary for determining whether or not—</text>
<clause commented="no" display-inline="no-display-inline" id="ID8B3FB4A15B5C4F17A900BC505BEC4EC8"><enum>(i)</enum><text display-inline="yes-display-inline">retirement distributions are includible in
the gross income of employees, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID708E01BD19E74DAD94DF9CA0C63D9BFC"><enum>(ii)</enum><text display-inline="yes-display-inline">an organization is exempt from tax under
such chapter, and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID11D7396BDD6F4EAF8BFDA5282CD0A259"><enum>(C)</enum><text display-inline="yes-display-inline">subchapter D of such chapter 1 (relating to
deferred compensation).</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID5F5BC912C5E645BB8C6279E92566AF23" section-type="subsequent-section"><enum>107.</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="no-display-inline">Except as otherwise
provided in this title, the amendments made by this title shall apply to
taxable years beginning after December 31, 2009.</text>
</section><enum>II</enum><header display-inline="yes-display-inline">Supermajority required for tax
changes</header>
<section commented="no" display-inline="no-display-inline" id="ID37C02CCF1BF64006003282BFFA1C8D8C" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Supermajority required</header>
<subsection commented="no" display-inline="no-display-inline" id="IDAF8F9BE5F9A444E5B3F7224BC3F231C6"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">It shall not be in order in the House of
Representatives or the Senate to consider any bill, joint resolution, amendment
thereto, or conference report thereon that includes any provision that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID0ED32F7B76BD4C81880900A054A7D692"><enum>(1)</enum><text display-inline="yes-display-inline">increases any Federal income tax
rate,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDC046C341AF824C6E93D37600CFC7AE8D"><enum>(2)</enum><text display-inline="yes-display-inline">creates any additional Federal income tax
rate,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID450760BE75104B2FA1FC1800BED20048"><enum>(3)</enum><text display-inline="yes-display-inline">reduces the standard deduction, or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7CD8EC24538048AA8824007FC4FA84FF"><enum>(4)</enum><text display-inline="yes-display-inline">provides any exclusion, deduction, credit,
or other benefit which results in a reduction in Federal revenues.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID491E913964FC487187E789E8DEE3F04F"><enum>(b)</enum><header display-inline="yes-display-inline">Waiver or suspension</header><text display-inline="yes-display-inline">This section may be waived or suspended in
the House of Representatives or the Senate only by the affirmative vote of
three-fifths of the Members, duly chosen and sworn.</text>
</subsection></section>