117 S1653 IS: Simplified, Manageable, And Responsible Tax Act
U.S. Senate
2021-05-17
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.
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" section-type="subsequent-section" id="IDCF06EB21ACAA407584DF077BED22A829"><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 style="OLC" display-inline="no-display-inline" id="ID593DE2207D524ABBAD2962D3C51BAF94">
<section commented="no" display-inline="no-display-inline" section-type="section-one" id="ID714771B8D5A84C3CA1C414656F9E12D5"><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"><external-xref legal-doc="usc" parsable-cite="usc/26/63">Section 63</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="ID40C4DADF78894F27B154FB7FD63EF1FA">
<section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="ID664380E6818D42F1BDF992EBC1FC2D42"><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">$29,190 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">$18,630 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">$14,590 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 $6,290 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 2022, 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 2021.</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" section-type="subsequent-section" id="ID71C0FD97BB1C4A4186E04D5080A4DB36"><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 style="OLC" display-inline="no-display-inline" id="ID12FAE163185246779B656540005287B9"> <section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="ID0AE0F67FE9E047F4A39346DF50D59879"><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, </text></subparagraph><continuation-text continuation-text-level="paragraph">shall be allowed as a credit against the tax imposed by this section for the following taxable year.</continuation-text></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 noncash compensation provided to employees not engaged in business activity</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/4977">Section 4977</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="IDFA63D0EEA5254469812E5201A6430468">
<section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="ID8236790653794F3C8DF30086334CDFE8"><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" section-type="subsequent-section" id="IDB82CFE578AC64FC10061A154C7BB5C2D"><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">Paragraphs (3), (6), and (26) of section 401(a), and section 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), (12), and (13) of section 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">Paragraphs (3) and (6) (other than subparagraph (A)(i) thereof) of section 408(k) (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), 402(h)(2), 403(b) (3) and (4), 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), 402(g), and 403(b)(1)(E) (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"><external-xref legal-doc="usc" parsable-cite="usc/26/4980">Section 4980</external-xref> of the Internal Revenue Code of 1986 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 style="OLC" display-inline="no-display-inline" id="ID44D9C6AEA00243BDB3D9EEC011370016">
<section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="IDEB0D1500182E49278EEA7600588183CB"><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="idAF8AAB7CEFFB4E54BF45798D7AC26A9E"><enum>(A)</enum><text display-inline="yes-display-inline">the lesser of—</text>
<clause commented="no" display-inline="no-display-inline" id="id4CBB06D8F2AF4837982B7F24C36500A9"><enum>(i)</enum><text display-inline="yes-display-inline">the fair market value of the plan's assets (reduced by the prefunding balance and funding standard carryover balance determined under section 430(f)), or</text></clause> <clause commented="no" display-inline="no-display-inline" id="id1BB3E6D1202E4FA6A3B2DBFB4F28B9B6"><enum>(ii)</enum><text>the value of plan assets as determined under section 430(g)(3) after reduction under section 430(f), over</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="idA2E71B582473468E9556AF236D03B666"><enum>(B)</enum><text>125 percent of the sum of the funding target and the target normal cost determined under section 430 for such plan year.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="IDA75165570BE2423E846C8735547130A2"><enum>(2)</enum><header display-inline="yes-display-inline">Coordination with sections 430 and 433</header><text display-inline="yes-display-inline">In the case of a qualified transfer—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id005DAA1D1A0F4F9686B95394D43C14CC"><enum>(A)</enum><text>any assets so transferred shall not, for purposes of this section and sections 430 and 433, be treated as assets in the plan, and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="IDF65CE57F0D5C4A9E8E8716D0DFF8C49C"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a CSEC plan, the plan shall be treated as having a net experience loss under section 433(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" section-type="subsequent-section" id="IDBD8C5162CFBB4602BEE092FC3DD5E540"><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" section-type="subsequent-section" id="IDA44CD39EA91C455C87715B1BBE9F9C52"><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" section-type="subsequent-section" id="ID50F5F9E687754733B16BF1C49666EBE3"><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, 2021.</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), <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></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" section-type="subsequent-section" id="ID5F5BC912C5E645BB8C6279E92566AF23"><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, 2021.</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" section-type="subsequent-section" id="ID37C02CCF1BF64006003282BFFA1C8D8C"><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>