It’s Tax Day, and if you’re like most people, you’ve already filed your taxes. But one in four people wait until April 15th, according to a McClatchy-Marist Poll (4/14/14). Interestingly, a majority of people surveyed — 56 percent — said they paid “about the right amount” in federal taxes. Nearly 7 in 10 men expect refunds, while just 54 percent of women expect money back from the IRS.
Regardless of how you feel about paying taxes, take a look at the proposals in Congress that would change income tax policies — and how we file our taxes. Share your voice with Congress on this Tax Day 2014!
Changing Tax Policies…
- HR 1723
Fairness in Taxation Act
To impose increased rates of tax with respect to taxpayers with more than $1,000,000 taxable income. Would create new tax brackets for millionaires and billionaires, according to the bill sponsor.
- S 1287
AMT Credits
To raise the limitation on the election to accelerate the AMT credit in lieu of bonus depreciation for 2013. *Bipartisan*
- S 720
Buffett Rule Act
To provide for taxpayers making donations with their returns of income tax to the Federal Government to pay down the public debt.
- HR 766
Paying a Fair Share Act (or the “Buffett Rule”)
Reduces the deficit by imposing a minimum effective tax rate for high-income taxpayers.
- HR 2470
Making Work and Marriage Pay Act
To establish the National Commission on Effective Marginal Tax Rates for Low-Income Families. Would establish a national commission to study how multiple federal and state benefit programs create disincentives for low-income families to work and can discourage marriage, according to bill sponsors. *Bipartisan*
- Draft
Congressman Camp’s draft of Tax Reform Act — (No bill introduced yet!)
Ways and Means Committee Chairman Dave Camp (R-MI) released draft legislation, the Tax Reform Act. The proposal flattens the code by reducing rates and collapsing today’s brackets into two brackets of 10 and 25 percent for virtually all taxable income. Provides an inflation-adjusted standard deduction of $11,000 for individuals and $22,000 for married couples. Taxes long-term capital gains and dividends as ordinary income, but exempts 40 percent of such income from tax. Repeals the Alternative Minimum Tax (AMT) for individuals.
…Or Doing Away with Income Taxes
- HR 25
Fair Tax Act
(Also S 122.) Promotes freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States.
- HJRes 104
Repealing the 16th Amendment
Proposing an amendment to the US Constitution to repeal the sixteenth article of amendment.
- HR 352
Tax Code Termination Act
To terminate the Internal Revenue Code of 1986. Would abolish the Internal Revenue Code by December 31, 2015 and require Congress to approve a new federal tax system by July of the same year, according to bill sponsor. *Bipartisan*
- HR 1040
Flat Tax Act
To amend the Internal Revenue Code of 1986 to provide taxpayers a flat tax alternative to the current income tax system.
- S 173
SMART Act (Simplified, Manageable, And Responsible Tax Act)
To repeal the current Internal Revenue Code and replace it with a flat tax, thereby guaranteeing economic growth and fairness for all Americans.
Changing How We File Taxes
- S 722
Simpler Tax Filing Act
To require the Secretary of the Treasury to study the feasibility of providing certain taxpayers with an optional pre-prepared tax return. Would “pave the way for the Internal Revenue Service to provide many tax filers with a one-page tax return already filled out with the taxpayer’s information, known as a “simple return,” in turn saving American taxpayers billions in tax preparation fees,” according to bill sponsors.
- HR 2530
Taxpayer Transparency and Efficient Audit Act
To improve transparency and efficiency with respect to audits and communications between taxpayers and the Internal Revenue Service. Requires the IRS to provide a substantive response to any written taxpayer correspondence within 30 days of receipt and sets a one-year deadline for completion of audits, according to bill sponsor.
- S 669
Free File Program Act
To make permanent the Internal Revenue Service Free File program. *Bipartisan*
- S 448
Seniors’ Tax Simplification Act
To allow seniors to file their Federal income tax on a new Form 1040SR. Simplifies tax filing with one form, 1040SR, for seniors who not only have income through social security but also have income through retirement benefits, interest, and capital gains, according to bill sponsor. *Bipartisan*
- S 420
Tax Return Due Date Simplification and Modernization Act
To provide for the logical flow of return information between partnerships, corporations, trusts, estates, and individuals to better enable each party to submit timely, accurate returns and reduce the need for extended and amended returns, to provide for modified due dates by regulation, and to conform the automatic corporate extension period to longstanding regulatory rule. *Bipartisan*
Please keep in mind that highlighting a bill doesn’t imply a POPVOX endorsement in any way. Rather, we’re simply trying to offer one more way to stay informed of an overwhelmingly complex legislative system.
