Bill Summary & Status for the 106th Congress

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H.R.1040
Sponsor: Rep Armey, Richard K. (introduced 3/9/1999)
Latest Major Action: 3/9/1999 Referred to House committee
Title: To promote freedom, fairness, and economic opportunity for families by reducing the power and reach of the Federal establishment.
Jump to: Titles, Status, Committees, Related Bill Details, Amendments, Cosponsors, Summary
TITLE(S):  (italics indicate a title for a portion of a bill)
STATUS: (color indicates Senate actions)
3/9/1999:
Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, 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.
3/9/1999:
Referred to House Ways and Means
3/9/1999:
Referred to House Rules
COMMITTEE(S):
RELATED BILL DETAILS:

***NONE***

AMENDMENT(S):

***NONE***

COSPONSORS(11), ALPHABETICAL [followed by Cosponsors withdrawn]:     (Sort: by date)

Rep Barr, Bob - 11/2/1999 Rep Callahan, Sonny - 3/10/1999
Rep Chenoweth-Hage, Helen - 3/9/1999 Rep Goodling, William F. - 3/9/1999
Rep Hall, Ralph M. - 3/9/1999 Rep Hefley, Joel - 4/13/1999
Rep Myrick, Sue - 4/13/1999 Rep Norwood, Charlie - 3/9/1999
Rep Sanford, Marshall (Mark) - 3/16/1999 Rep Smith, Nick - 3/9/1999
Rep Toomey, Patrick J. - 2/15/2000

SUMMARY AS OF:
3/9/1999--Introduced.

TABLE OF CONTENTS:

TABLE OF CONTENTS:

Title I: Tax Reduction

Title II: Supermajority Required for Tax Changes

Freedom and Fairness Restoration Act of 1999 - Title I: Tax Reduction and Simplification - Amends the Internal Revenue Code to impose a 19 percent tax (17 percent after December 31, 2000) on the taxable income of every individual.

Redefines "taxable income" to mean the amount by which wages, retirement distributions, and unemployment compensation exceed the standard deduction. Increases the basic standard deduction and includes an additional standard deduction for dependents. Includes in taxable income the taxable income of each dependent child under the age of 14. Provides for inflation adjustments.

(Sec. 102) Replaces the current tax on corporations with a tax on every person engaged in a business activity equal to 19 percent (17 percent after December 31, 2000) of the business taxable income of such person. Makes the person engaged in the business activity liable for the tax.

Imposes a tax of 19 percent (17 percent after December 31, 2000) on the value of excludable compensation provided during the year by an employer for the benefit of employees. Makes the employer liable for the tax.

(Sec. 103) Repeals: (1) numerous provisions relating to pension plans; and (2) provisions imposing a tax on any employer reversion from a qualified plan.

Revises requirements regarding transfers of excess pension assets.

(Sec. 104) Repeals from the Internal Revenue Code: (1) the part relating to alternative minimum tax; (2) the part relating to credits against tax; (3) the subtitle relating to estate and gift taxes; and (4) subject to exception, the chapter relating to normal taxes and surtaxes.

Title II: Supermajority Required for Tax Changes - Makes it not in order in the House of Representatives or the Senate, unless waived or suspended in the House or the Senate by a three-fifths vote of the Members, to consider any bill, joint resolution, amendment thereto, or conference report thereon that includes any provision that increases an income tax rate, creates an additional tax rate, reduces the standard deduction, or provides any exclusion, deduction, credit, or other benefit that results in a reduction in Federal revenues.