I 112th CONGRESS 1st Session H. R. 937 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.

1.

Short title

This Act may be cited as the The Rising Tides Act of 2011.

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.

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.