Tithe Tax Act of 1987

Summary

Tithe Tax Act of 1987 - Amends the Internal Revenue Code to repeal the following taxes: (1) the corporate income tax; (2) the alternative minimum tax insofar as it applies to corporations; (3) the tax on the unrelated business income of tax-exempt organizations; (4) the tax on the accumulated earnings of certain corporations; (5) the tax applied to personal holding companies; (6) the alternative tax for certain mutual savings banks; (7) income taxes imposed on insurance companies, regulated investment companies, and real estate investment trusts; and (8) the tax on the income of foreign corporations connected with U.S. business. Revises the individual income tax to impose a ten percent tax on an individual's earned income, to the extent it exceeds a specified exempt amount ($10,000 for 1988), adjusted annually based on the Consumer Price Index. Includes as earned income; (1) wages, salaries, and other employee compensation; (2) the amount of net earnings from self-employment; and (3) the amount of dividends from a personal service corporation or which are otherwise directly or indirectly compensation for services. Excludes from earned income (and thereby exempts from taxation): (1) any amount received as a pension or annuity; and (2) tips. Repeals all tax exclusions, tax deductions, and tax credits currently used to determine individual income tax liability. Repeals the estate tax, the gift tax, and the tax on certain generation-skipping transfers. Directs the Secretary of the Treasury, within 90 days of this Act's enactment, to submit to a specified congressional committee a draft of conforming and technical changes in the Internal Revenue Code that would be required to reflect the changes made by this Act.

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1 official file

• Introduced in Senate

  summary · EN · 31 July 1987

  Open at official source

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