I 112th CONGRESS 1st Session H. R. 2311 IN THE HOUSE OF REPRESENTATIVES June 23, 2011 Mr. Paulsen (for himself and Mr. Davis of Illinois) 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 modify the tax rate for excise tax on investment income of private foundations.

1.

Modification of the tax rate for the excise tax on investment income of private foundations

(a)

In general

Subsection (a) of section 4940 of the Internal Revenue Code of 1986 is amended by striking 2 percent and inserting 1.39 percent. (b)

Elimination of reduced tax where foundation meets certain distribution requirements

Section 4940 of the Internal Revenue Code of 1986 is amended by striking subsection (e). (c)

Effective date

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