[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 937 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 937

To amend the Internal Revenue Code of 1986 to reduce the corporate rate 
      of tax and to change to a more territorial method of taxing 
                             corporations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 4, 2011

 Mr. Scott of South Carolina 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 reduce the corporate rate 
      of tax and to change to a more territorial method of taxing 
                             corporations.

    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 ``The Rising Tides Act of 2011''.

SEC. 2. CORPORATE INCOME TAX RATE REDUCED TO 23 PERCENT.

    (a) In General.--Paragraph (1) of section 11(b) of the Internal 
Revenue Code of 1986 is amended--
            (1) by adding ``and'' at the end of subparagraph (A),
            (2) by striking ``25 percent'' in subparagraph (B) and 
        inserting ``23 percent'', and
            (3) by striking ``but does not exceed $75,000'' and all 
        that follows through ``or (ii) $100,000''.
    (b) Personal Service Corporations.--Paragraph (2) of section 11(b) 
of such Code is amended by striking ``35 percent'' and inserting ``23 
percent''.
    (c) Conforming Amendments.--
            (1) Subsection (a) of section 1201 of such Code is 
        amended--
                    (A) by striking ``35 percent (determined without 
                regard to the last 2 sentences of section 11(b))'' and 
                inserting ``23 percent'', and
                    (B) by striking ``35 percent'' each place it 
                appears (other than in the matter preceding paragraph 
                (1)) and inserting ``23 percent''.
            (2) Paragraphs (1), (2), and (6) of section 1445(e) of such 
        Code are each amended by striking ``35 percent'' and inserting 
        ``23 percent''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. TEMPORARY DIVIDENDS RECEIVED DEDUCTION FOR DIVIDENDS RECEIVED 
              BY CORPORATIONS FROM CONTROLLED FOREIGN CORPORATIONS MADE 
              PERMANENT.

    (a) In General.--Section 965 of the Internal Revenue Code of 1986 
is amended--
            (1) by striking subsection (b) and by redesignating 
        subsections (c), (d), (e), and (f) as subsections (b), (c), 
        (d), and (e), respectively,
            (2) in subsection (b) (as so redesignated) by striking 
        paragraphs (1), (2), and (5) and by redesignating paragraphs 
        (3) and (4) as paragraphs (1) and (2), respectively,
            (3) in subsection (c) (as so redesignated) by striking 
        paragraph (3) and by redesignating paragraph (4) as paragraph 
        (3), and
            (4) by striking subsection (e) (as so redesignated) and 
        inserting the following:
    ``(e) Election.--
            ``(1) In general.--An election under this section shall be 
        made at such time and in such manner as the Secretary may 
        prescribe. Any such election shall apply to all dividends 
        received from controlled foreign corporations for the first 
        taxable year for which such election was made and all taxable 
        years thereafter, and, once made, may be revoked only with the 
        consent of the Secretary.
            ``(2) Controlled groups.--If an election under this section 
        is made by a member of a controlled group of corporations 
        (within the meaning of section 1563(a), except that `more than 
        50 percent' shall be substituted for `at least 80 percent' each 
        place it appears therein) then, except as otherwise provided by 
        the Secretary, such election shall apply to all members of such 
        controlled group.''.
    (b) Clerical Amendments.--
            (1) The heading for section 965 of such Code is amended by 
        striking ``temporary dividends'' and inserting ``dividends''.
            (2) The item relating to section 965 in the table of 
        sections for subpart F of part III of subchapter N of chapter 1 
        of such Code is amended to read as follows:

``Sec. 965. Dividends received deduction.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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