H.R. 7538 — Introduced in House

I 117th CONGRESS 2d Session H. R. 7538 IN THE HOUSE OF REPRESENTATIVES April 18, 2022Mr. Moore of Alabama introduced the following bill; which was referred to the Committee on Ways and Means A BILL To provide the equivalent of a 6-month Federal income tax holiday for certain individuals. 1. 6-month Federal income tax holiday for certain individuals (a) In general In the case of any individual (other than an estate or trust), the amount of tax otherwise imposed under section 1 of the Internal Revenue Code of 1986 for such taxpayer’s first taxable year beginning after December 31, 2021, shall be reduced by the 6-month Federal income tax holiday amount. (b) 6-Month Federal income tax holiday amount For purposes of this section, the term 6-month Federal income tax holiday amount means, with respect to any taxpayer for any taxable year, 50 percent of the tax imposed under section 1 of the Internal Revenue Code of 1986 with respect to such taxpayer for such taxable year (determined without regard to this section). (c) Phaseout of benefit based on adjusted gross income (1) In general If the adjusted gross income of any taxpayer for the taxpayer’s first taxable year beginning after December 31, 2021, exceeds the applicable phaseout threshold, the 6-month Federal income tax holiday amount with respect to such taxpayer for such taxable year shall be reduced (but not below zero) by an amount which bears the same ratio to such amount as the applicable phaseout range bears to such excess. (2) Applicable phaseout threshold For purposes of this subsection, the term applicable phaseout threshold means— (A) in the case of a joint return or surviving spouse, $83,550, (B) in the case of a head of household, $55,000, and (C) in any other case, $41,775. (3) Applicable phaseout range For purposes of this subsection, the term applicable phaseout range means— (A) in the case of a joint return or surviving spouse, $20,000, (B) in the case of a head of household, $13,380, and (C) in any other case, $10,000. (d) Certain terms Any term used in this section which is also used in section 1 of the Internal Revenue Code of 1986 shall have the same meaning when used in this section as when used in such section 1.