H.R. 4100 – Reading Mode

111th CONGRESS

1st Session

H. R. 4100

IN THE HOUSE OF REPRESENTATIVES

November 18, 2009

Mr. Broun of Georgia (for himself, Mr. Gohmert, Mr. Hall of Texas, Ms. Granger, Mr. Cole, Mr. Franks of Arizona, Mr. Shadegg, Mr. Bishop of Utah, Mr. Marchant, and Mr. Posey) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Internal Revenue Code of 1986 to provide individual and corporate income tax relief, to reduce the employee share of payroll taxes, and to rescind unobligated stimulus funds, and for other purposes.

Short title

This Act may be cited as the Jumpstarting Our Business Sector Act of 2009.

Capital gains tax relief

(a)

In general

Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

139D.

Temporary exclusion of certain dividends and long-term capital gains

In the case of taxable years beginning in 2009 and 2010, gross income shall not include—

(1)

gain from the sale or exchange of a capital asset held for more than 1 year, and

(2)

any qualified dividend income (as defined in section 1(h)(11)(B), determined without regard to clause (ii)(IV) thereof and without regard to section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003).

(b)

Conforming amendment

Clause (ii) of section 1(h)(11)(B) of such Code is amended by striking and at the end of subclause (II), by striking the period at the end of subclause (III) and inserting , and, and by adding at the end the following new subclause:

(IV)

any dividend excluded from gross income under section 139D.

(c)

Clerical amendment

Part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139C the following new item:

139D. Temporary exclusion of certain dividends and long-term capital gains.

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

Temporary reduction of employment taxes

(a)

Tax on employees

Section 3101 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(d)

Temporary reduction

In the case of remuneration paid not later than 2 years after the date of the enactment of this subsection—

(1)

subsection (a) shall be applied by substituting 3.1 for 6.2, and

(2)

subsection (b) shall be applied by substituting 0.725 for 1.45.

(b)

Tax on self-Employed income

Section 1401 of such Code is amended by adding at the end the following new subsection:

(c)

Temporary reduction

In the case of self-employment income derived not later than 2 years after the date of the enactment of this subsection—

(1)

subsection (a) shall be applied by substituting 6.2 for 12.40, and

(2)

subsection (b) shall be applied by substituting 1.45 for 2.90.

(c)

Effective dates

(1)

The amendment made by subsection (a) shall apply to remuneration received on or after the first January 1 after the date of the enactment of this Act.

(2)

The amendment made by subsection (b) shall apply to self-employment income derived on or after the first January 1 after the date of the enactment of this Act.

Reduction in corporate marginal income tax rates

(a)

In general

Subsection (b) of section 11 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(3)

Reduced temporary rates

In the case of taxable years beginning in 2009 and 2010—

(A)

In general

Notwithstanding paragraph (1), the amount of tax imposed by subsection (a) shall be the sum of—

(i)

15 percent of so much of the taxable income as does not exceed $50,000, and

(ii)

25 percent of so much of the taxable income as exceeds $75,000.

(B)

Certain personal service corporations

Paragraph (2) shall be applied by substituting 25 percent for 35 percent.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2008.

Rate reductions for 2009 and 2010

Subsection (i) of section 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(4)

Temporary rate reductions for 2009 and 2010

In the case of taxable years beginning after December 31, 2008, and before January 1, 2011—

(A)

paragraph (1)(A)(i) shall be applied by substituting 5 percent for 10 percent, and

(B)

notwithstanding paragraph (1)(A)(ii), the rate of tax under subsections (a), (b), (c), and (d) on taxable income over the initial bracket amount (as defined in such paragraph) but not over the maximum bracket amount for the 15-percent rate bracket shall be 10 percent.

Rescission of unobligated stimulus funds

Effective on the date of the enactment of this Act, there are rescinded all unobligated balances of the discretionary appropriations made available by division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5).