117 HR 7538 IH: To provide the equivalent of a 6-month Federal income tax holiday for certain individuals. U.S. House of Representatives 2022-04-18 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.

I117th CONGRESS2d SessionH. R. 7538IN THE HOUSE OF REPRESENTATIVESApril 18, 2022Mr. Moore of Alabama introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo provide the equivalent of a 6-month Federal income tax holiday for certain individuals.

1.

6-month Federal income tax holiday for certain individuals

(a)

In general

In the case of any individual (other than an estate or trust), the amount of tax otherwise imposed under section 1 of the Internal Revenue Code of 1986 for such taxpayer’s first taxable year beginning after December 31, 2021, shall be reduced by the 6-month Federal income tax holiday amount.(b)

6-Month Federal income tax holiday amount

For purposes of this section, the term 6-month Federal income tax holiday amount means, with respect to any taxpayer for any taxable year, 50 percent of the tax imposed under section 1 of the Internal Revenue Code of 1986 with respect to such taxpayer for such taxable year (determined without regard to this section).(c)

Phaseout of benefit based on adjusted gross income

(1)

In general

If the adjusted gross income of any taxpayer for the taxpayer’s first taxable year beginning after December 31, 2021, exceeds the applicable phaseout threshold, the 6-month Federal income tax holiday amount with respect to such taxpayer for such taxable year shall be reduced (but not below zero) by an amount which bears the same ratio to such amount as the applicable phaseout range bears to such excess.(2)

Applicable phaseout threshold

For purposes of this subsection, the term applicable phaseout threshold means—(A)in the case of a joint return or surviving spouse, $83,550,(B)in the case of a head of household, $55,000, and(C)in any other case, $41,775.(3)

Applicable phaseout range

For purposes of this subsection, the term applicable phaseout range means—(A)in the case of a joint return or surviving spouse, $20,000,(B)in the case of a head of household, $13,380, and(C)in any other case, $10,000.(d)

Certain terms

Any term used in this section which is also used in section 1 of the Internal Revenue Code of 1986 shall have the same meaning when used in this section as when used in such section 1.