Tax Fairness and Deficit Reduction Act of 1995

openUnited States· United States Congress· EN

Introduced

13 March 1995

Last action

26 October 1995 · Committee

Status

For Further Action See H.R.2491.

Summary

TABLE OF CONTENTS: Title I: American Dream Restoration Title II: Senior Citizens' Equity Subtitle A: Repeal of Increase in Tax on Social Security Benefits Subtitle B: Treatment of Long-term Care Insurance and Services Subtitle C: Treatment of Accelerated Death Benefits Subtitle D: Inclusion in Gross Income of Excess Long-term Care Benefits Title III: Job Creation and Wage Enhancement Subtitle A: Capital Gains Reform Subtitle B: Cost Recovery Provisions Subtitle C: Alternative Minimum Tax Relief Subtitle D: Public Debt Reduction Checkoff and Trust Fund Subtitle E: Small Business Incentives Title IV: Family Reinforcement Title V: Social Security Earnings Test Title VI: Technical Corrections Contract With America Tax Relief Act of 1995 - Title I: American Dream Restoration - Amends the Internal Revenue Code to allow individuals a tax credit of $500 multiplied by the number of qualifying children who have not attained age 18. Places limitations on such credit for taxpayer adjusted gross incomes over $200,000. Provides an inflation adjustment for such credit and the taxpayer adjusted gross income amount. (Sec. 102) Allows a marriage penalty reduction credit for qualified married couples to be determined under tables prescribed by the Secretary of the Treasury. (Sec. 103) Establishes individual retirement plans (IRAs) which can be designated as American Dream Savings Accounts. Disallows a tax deduction for amounts contributed to such accounts. Limits contributions to such accounts to the lesser of $2,000, or compensation includible in an individual's gross income for a taxable year ($4,000 in the case of certain married individuals). Provides an inflation adjustment on such amounts. Permits contributions to be made after age 70 and one-half. Excludes distributions from such accounts from gross income and makes the penalty on early distributions inapplicable. Designates qualified distributions as those: (1) made after the individual attains age 59.5; (2) made to a beneficiary on or after the death of the individual; (3) attributable to the individual being disabled; and (4) qualified as special purpose distributions. Prohibits qualified distributions from being made within the five-year period since the account began. Describes special purpose distributions as those for: (1) qualified first-time homebuyers; (2) qualified higher education expenses; and (3) qualified medical expenses, including long-term care insurance. Terminates the authority to make nondeductible contributions to IRAs. (Sec. 104) Provides for computing a spousal IRA on the basis of compensation of both spouses. Title II: Senior Citizens' Equity - Subtitle A: Repeal of Increase in Tax on Social Security Benefits - Amends the Internal Revenue Code to decrease the tax on social security benefits from 1996 through 1999. Terminates such tax after December 31, 1999. Subtitle B: Treatment of Long-Term Care Insurance and Services - Provides for the treatment of qualified long-term care insurance as accident and health insurance for purposes of insurance company taxation. Prohibits long-term care insurance under cafeteria plans. Includes in the gross income of an employee employer-provided coverage for qualified long-term care services provided through flexible spending arrangements. Provides that the continuation coverage excise tax does not apply to a group health plan solely by reason of failing to provide long-term care insurance. Declares that payments to relatives (unlicensed with respect to long-term medical care services) shall be treated as not paid for medical care. (Sec. 212) Includes amounts paid for qualified long-term care services as medical expenses for individual itemized deductions. (Sec. 213) Provides for the nonrecognition of gain or loss on the exchange of any life insurance contract or an endowment or annuity contract for a long-term care insurance contract. (Sec. 214) Excludes from gross income certain amounts withdrawn from individual retirement accounts and certain employer cash or deferred arrangements to pay long-term care premiums. Subtitle C: Treatment of Accelerated Death Benefits - Provides for the exclusion as a death benefit of any amount paid or advanced to an individual under a life insurance contract because such individual is terminally ill or chronically ill and confined to a qualified facility. (Sec. 222) Allows insurance companies to issue accelerated death benefit riders on life insurance contracts. Subtitle D: Inclusion in Gross Income of Excess Long-term Care Benefits - Includes in gross income excess long-term care benefits, except for terminally ill individuals. (Sec. 232) Establishes reporting requirements for persons who pay long-term care benefits. Title III: Job Creation and Wage Enhancement - Subtitle A: Capital Gains Reform - Amends the Internal Revenue Code to allow a 50 percent income tax deduction for the net capital gain of noncorporate taxpayers. Allows such deduction in computing gross income. (Sec. 302) Requires indexing, based on the gross national product deflator, of the adjusted basis of certain assets (corporate stock and tangible property that is a capital asset or property used in a trade or business) that have been held for more than three years at the time of sale or other transfer, solely for the purpose of determining gain or loss. Allows a taxpayer, other than a corporation that holds any readily tradable stock on January 1, 1995, to treat such stock as having been sold on the last business day before such date for an amount equal to its closing market price on such last business day (and as having been reacquired on such last business day for an amount equal to such closing market price). (Sec. 311) Reduces the alternative capital gains tax on corporations from 35 percent to 25 percent. (Sec. 316) Allows an itemized deduction for losses arising from the sale or exchange of a principal residence. Subtitle B: Cost Recovery Provisions - Allows the depreciation deduction to be computed based on a neutral recovery basis for property placed in service after December 31, 1994. (Sec. 322) Provides for the treatment of lessor improvements which are abandoned at the termination of a lease. Subtitle C: Alternative Minimum Tax Relief - Phases out the alternative minimum tax for corporations to zero after December 31, 2000. Provides for earlier termination of certain tax adjustments. Subtitle D: Public Debt Reduction Checkoff and Trust Fund - Establishes a Public Debt Reduction Trust Fund for the deposit of designated amounts. Makes amounts in such Trust Fund available only to pay at maturity, or to redeem or buy before maturity, any obligation of the Federal Government included in the public debt. Prohibits the reissuance of any obligation which is paid, redeemed, or bought with amounts from the Trust Fund. Subtitle E: Small Business Incentives - Increases the unified credit against the estate tax and the unified credit against the gift tax and provides a cost-of-living adjustment for such credits. Provides an inflation adjustment for the alternate valuation of certain farm property, the gift tax exclusion, the generation-skipping tax exemption, and the estate tax on closely held businesses. (Sec. 352) Increases the dollar limitation on the election to expense certain depreciable business assets. (Sec. 353) Provides qualifications for a home office as a principal place of business for purposes of the deductibility of expenses. (Sec. 354) Treats the storage of product samples as inventory for deduction purposes. Title IV: Family Reinforcement - Allow an income tax credit for up to $5,000 of qualified adoption expenses paid or incurred by the taxpayer during the taxable year. Sets forth a formula for reduction of such credit for taxpayers whose adjusted gross income exceeds $60,000. Denies such a credit for any expense for which a deduction or credit is allowable under another Code provision. Defines "qualified adoption expenses" as reasonable and necessary adoption fees, court costs, attorney fees, and other lawful expenses directly related to legal adoption of a child, but not any expenses paid from any funds received under a Federal, State, or local program. Disqualifies for such a credit any expenses in connection with the adoption of a child of the taxpayer's spouse. (Sec. 402) Allows a tax credit for an individual who maintains a household which includes one or more qualified persons requiring custodial care equal to $500 for each such person. Title V: Social Security Earnings Test - Amends title II (Old Age, Survivors and Disability Act) of the Social Security Act to increase the monthly exempt amount for individuals who have attained retirement age. Title VI: Technical Corrections - Makes technical amendments to the Revenue Reconciliation Act of 1990 and the Revenue Reconciliation Act of 1993. Provides for the application of amendments made by title XII of the Omnibus Budget Reconciliation Act of 1990. Includes among such amendments clarification of U.S. shareholder interests in controlled foreign corporations with respect to dividends, modification of the election to include a child's unearned income on a parent's return, and certain investments in annuity contracts.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

13 March 1995
Introduced
Referred to the House Committee on Ways and Means.
Source: IntroReferral
13 March 1995
Introduced
Introduced in House
Source: IntroReferral
13 March 1995
Introduced
Introduced in House
Source: IntroReferral
14 March 1995
Vote
Ordered to be Reported by the Yeas and Nays: 21 - 14.
Source: Committee
14 March 1995
Committee
Committee Consideration and Mark-up Session Held.
Source: Committee
21 March 1995
Calendars
Placed on the Union Calendar, Calendar No. 40.
Source: Calendars
21 March 1995
Reported
Reported by the Committee on Ways and Means. H. Rept. 104-84.
Source: Committee
21 March 1995
Reported
Reported by the Committee on Ways and Means. H. Rept. 104-84.
Source: Committee
4 April 1995
Reported
Rules Committee Resolution H. Res. 128 Reported to House. Rule provides for consideration of H.R. 1215 with 4 hours of general debate. Previous question shall be considered as ordered except motion to recommit with or without instructions. Measure will be considered read. A specified amendment is in order. It shall be in order to consider as an original bill for the purpose of amendment the amendment in the nature of a substitute consisting of the text of H.R. 1327, as modified by the amendment printed in part 1 of the report accompanying this resolution. All points of order against the amendment, as modified, shall be waived. No amendment to the amendmment shall be in order except the further amendment in the nature of a substitute printed in part 2 of the report accompanying this resolution, if offered in the order and manner specified. All points of order against the further amendment in the nature of a substitute shall be waived.
Source: Floor
5 April 1995
Passed
Motion to reconsider laid on the table Agreed to without objection.
Source: Floor
5 April 1995
Vote
On passage Passed by recorded vote: 246 - 188 (Roll no. 295).
Source: Floor
5 April 1995
Floor
The Speaker designated the Honorable John A. Boehner to act as Chairman of the Committee.
Source: Floor
5 April 1995
Vote
Passed/agreed to in House: On passage Passed by recorded vote: 246 - 188 (Roll no. 295).
Source: Floor
5 April 1995
ResolvingDifferences
Mr. Archer moved to table the motion to appeal the ruling of the chair
Source: ResolvingDifferences
5 April 1995
Floor
Mr. Moran appealed the ruling of the chair. The question was then put on sustaining the ruling of the chair.
Source: Floor
5 April 1995
Floor
Point of order raised by Mr. Moran on the content of the measure. Mr. Moran made a point of order that certain provisions of the bill had the effect of imposing an increase in certain taxes and, therefore, the bill required a 3/5 affirmative vote on final passage. Point of order overruled by the Chair.
Source: Floor
5 April 1995
Vote
On motion to recommit with instructions Failed by recorded vote: 168 - 265 (Roll No. 293). (consideration: CR H4311-4315)
Source: Floor
5 April 1995
Floor
The previous question on the motion to recommit with instructions was ordered without objection.
Source: Floor
5 April 1995
Floor
Mr. Gephardt moved to recommit with instructions to Ways and Means.
Source: Floor
5 April 1995
Passed
The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union.
Source: Floor
5 April 1995
Floor
The House rose from the Committee of the Whole House on the state of the Union to report H.R. 1215.
Source: Floor
5 April 1995
Vote
On motion to table the motion to appeal the ruling of the chair Agreed to by recorded vote: 228 - 204 (Roll No. 294).
Source: Floor
5 April 1995
Floor
House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 128 and Rule XXIII.
Source: Floor
5 April 1995
Floor
Rule provides for consideration of H.R. 1215 with 4 hours of general debate. Previous question shall be considered as ordered except motion to recommit with or without instructions. Measure will be considered read. A specified amendment is in order. It shall be in order to consider as an original bill for the purpose of amendment the amendment in the nature of a substitute consisting of the text of H.R. 1327, as modified by the amendment printed in part 1 of the report accompanying this resolution. All points of order against the amendment, as modified, shall be waived. No amendment to the amendment shall be in order except the further amendment in the nature of a substitute printed in part 2 of the report accompanying this resolution, if offered in the order and manner specified. All points of order against the further amendment in the nature of a substitute shall be waived.
Source: Floor
5 April 1995
Floor
Considered under the provisions of rule H. Res. 128. (consideration: CR H4213-4319)
Source: Floor
5 April 1995
Passed
Rule H. Res. 128 passed House.
Source: Floor
6 April 1995
Introduced
Received in the Senate and read twice and referred to the Committee on Finance.
Source: IntroReferral
7 June 1995
Committee
Committee on Finance. Hearings held.
Source: Committee
19 June 1995
Committee
Subcommittee on Taxation & IRS Oversight. Hearings held.
Source: Committee
26 October 1995
Committee
For Further Action See H.R.2491.
Source: Committee

Votes

No vote records are attached yet.

Versions

Referred in Senate · 6 April 1995 · Download file
Engrossed in House · 5 April 1995 · Download file
Reported in House · 21 March 1995 · Download file
Introduced in House · 13 March 1995 · Download file

Documents

10 official files

Referred in Senate (text)

View file Download file

This file cannot be previewed here. Use View or Download.

Leesvertaling

Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.

Vertaal naar

Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.

Referred in Senate (text)
Referred in Senate · EN · 6 April 1995
View Download Open at official source
Referred in Senate (PDF)
Referred in Senate · EN · 6 April 1995
View Download Open at official source
Leesvertaling
Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.
Vertaal naar
Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.
Engrossed in House (text)
Engrossed in House · EN · 5 April 1995
View Download Open at official source
Leesvertaling
Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.
Vertaal naar
Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.
Engrossed in House (PDF)
Engrossed in House · EN · 5 April 1995
View Download Open at official source
Leesvertaling
Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.
Vertaal naar
Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.
Passed House amended
summary · EN · 5 April 1995
Open at official source
Leesvertaling
Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.
Vertaal naar
Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.
Reported in House (text)
Reported in House · EN · 21 March 1995
View Download Open at official source
Leesvertaling
Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.
Vertaal naar
Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.
Reported in House (PDF)
Reported in House · EN · 21 March 1995
View Download Open at official source
Leesvertaling
Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.
Vertaal naar
Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.
Introduced in House (text)
Introduced in House · EN · 13 March 1995
View Download Open at official source
Leesvertaling
Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.
Vertaal naar
Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.
Introduced in House (PDF)
Introduced in House · EN · 13 March 1995
View Download Open at official source
Leesvertaling
Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.
Vertaal naar
Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.
Introduced in House
summary · EN · 13 March 1995
Open at official source
Leesvertaling
Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.
Vertaal naar
Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.

Related records

Showing 11 of 15 related records.

Sources

PoliticalRepo is an index and interpretation layer, not the authoritative legal source.

Official source: https://www.congress.gov/bill/104th-congress/house-bill/1215
Open data entity: https://api.congress.gov/v3/bill/104/hr/1215
us · 104-hr-1215 · source updated 7 April 2025