H.R.7538 - To provide the equivalent of a 6-month Federal income tax holiday for certain individuals was cosponsored by Clay Higgins.
It was referred to the Ways and Means committee.
This bill reduces the income tax of individual taxpayers for taxable years beginning after December 31, 2021, by the six-month federal income tax holiday amount. That amount is 50% of the income tax otherwise imposed and is phased out based upon taxpayer adjusted gross income.
117th CONGRESS 2d Session |
To provide the equivalent of a 6-month Federal income tax holiday for certain individuals.
April 18, 2022
Mr. Moore of Alabama introduced the following bill; which was referred to the Committee on Ways and Means
To provide the equivalent of a 6-month Federal income tax holiday for certain individuals.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 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.
You can read the bill here.
