Progressive Consumption Tax Act of 1983

Summary

Progressive Consumption Tax Act of 1983 - Title I: Progressive Consumption Tax - Amends the Internal Revenue Code to repeal the individual income tax. Imposes in lieu of the individual income tax a progressive consumption tax based, among other factors, upon the net increase or decrease in an individual's investment and savings. Repeals the corporate income tax. Imposes in lieu of the corporate income tax a tax on the taxable consumption of every corporation. Imposes a minimum tax on corporations which accumulate certain levels of surplus income. Increases the amount of the personal tax exemption from $1,000 to $2,000. Repeals specified income tax credits, deductions and exclusions. Includes in gross income, for purposes of the progressive consumption tax, the following items of income: (1) prizes and awards; (2) the cost of group-term life insurance purchased for employees; (3) unemployment compensation; (4) social security and tier one railroad retirement benefits; and (5) gifts, bequests, devises and inheritances. Limits the income tax deduction for interest paid to that interest which is related to business or investment activity. Repeals the income tax deduction for real and personal property taxes. Limits the maximum amount of the income tax deduction for charitable contributions to five percent of a taxpayer's adjusted gross income. Modifies the deduction for medical expenses and casualty losses. Repeals the limitations on the allowance of capital losses. Provides that the amendments made by this Act shall apply to taxable years beginning after December 31, 1985. Title II: Modification of Estate and Gift Taxes - Repeals the amount of the unified tax credit against the estate tax applicable in 1987. Repeals the gift tax.

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1 official file

• Introduced in House

  summary · EN · 17 November 1983

  Open at official source

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