Bill Sponsor
Senate Bill 1145
116th Congress(2019-2020)
SMART Act
Introduced
Introduced
Introduced in Senate on Apr 11, 2019
Overview
Text
Introduced
Apr 11, 2019
Latest Action
Apr 11, 2019
Origin Chamber
Senate
Type
Bill
Bill
The primary form of legislative measure used to propose law. Depending on the chamber of origin, bills begin with a designation of either H.R. or S. Joint resolution is another form of legislative measure used to propose law.
Bill Number
1145
Congress
116
Policy Area
Taxation
Taxation
Primary focus of measure is all aspects of income, excise, property, inheritance, and employment taxes; tax administration and collection. Measures concerning state and local finance may fall under Economics and Public Finance policy area.
Sponsorship by Party
Republican
Alabama
Senate Votes (0)
House Votes (0)
No Senate votes have been held for this bill.
Summary

Simplified, Manageable, And Responsible Tax Act or the SMART Act

This bill replaces the marginal income tax rates in the Internal Revenue Code with a single rate of 17% on individual taxable income.

The bill redefines "taxable income" to mean the amount by which wages, retirement distributions, and unemployment compensation exceed the standard deduction. It also

  • increases the basic standard deduction,
  • includes an additional standard deduction for dependents, and
  • includes the taxable income of each dependent child under the age of 14 in an individual's taxable income.

The bill revises the tax on corporations to (1) replace it with a tax on every person engaged in a business activity equal to 17% of the business taxable income of such person; and (2) make the person engaged in the business activity liable for the tax, whether or not such person is an individual, a partnership, or a corporation.

The bill imposes on employers a 17% tax on the value of excludable compensation provided during the year to employees.

With respect to pension rules, the bill (1) repeals rules relating to non-discrimination, contribution limits, and restrictions on distributions; and (2) revises rules relating to transfers of excess pension assets.

The bill also repeals

  • the alternative minimum tax;
  • all income tax credits;
  • estate, gift, and generation-skipping transfer taxes; and
  • income tax provisions, except certain provisions relating to retirement distributions and tax-exempt organizations.

The bill prohibits Congress from considering legislation to make specified changes to tax policy unless Congress waives or suspends the prohibition with a three-fifths vote.

Text (1)
April 11, 2019
Actions (2)
04/11/2019
Read twice and referred to the Committee on Finance.
04/11/2019
Introduced in Senate
Public Record
Record Updated
Nov 1, 2022 7:47:17 PM