US Congress House Bill 5374 (Prior Session Legislation)

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Spectrum: Partisan Bill (Republican 5-0)
Status: Introduced on May 27 2016 - 25% progression, died in committee
Action: 2016-05-27 - Referred to the House Committee on Ways and Means.
Pending: House Ways And Means Committee
Text: Latest bill text (Introduced) [PDF]

Bring Small Businesses Back Tax Reform Act This bill amends the Internal Revenue Code to establish new maximum individual tax rates for qualified business income that does not exceed $1 million (i.e., small business income). The maximum rates are: (1) 10% of such income not exceeding $150,000, and (2) 20% for income that exceeds $150,000 and is not more than $1 million. The rates apply to up to $1 million of qualified business income that is: (1) gross earnings derived by an individual from any active trade or business carried on by the individual, excluding deductions attributable to the trade or business; and (2) the taxpayer's distributive or pro rata share of pass-through income from entities such as a partnership or S corporation. Qualified business income does not include capital gains, interest, dividends, or royalties. For taxpayers that are not a corporation or a partnership with a corporation as a partner, the bill repeals the annual limitation on the election to deduct certain depreciable business assets. The bill also permits certain small businesses whose average gross receipts do not exceed $25 million (currently, $5 million) to use the cash accounting method without limitations and exempts such businesses from inventory rules.

Bring Small Businesses Back Tax Reform Act

Rep. Randy Hultgren [R-IL]	Rep. Earl Carter [R-GA]	Rep. Mike Bishop [R-MI]	Rep. Jason Smith [R-MO]
Rep. Mike Coffman [R-CO]

Date	Chamber	Action
2016-05-27	House	Referred to the House Committee on Ways and Means.
2016-05-27	House	Introduced in House

Type	Source
Summary	https://www.congress.gov/bill/114th-congress/house-bill/5374/all-info
Text	https://www.congress.gov/114/bills/hr5374/BILLS-114hr5374ih.pdf