McDermott/Reichert Introduce Bipartisan Bill to End Outdated Tax PenaltyFor Immediate Release: December 18, 2012
Contact: Kinsey Kiriakos, 202-821-5002
WASHINGTON, DC – U.S. Congressmen Jim McDermott (D-WA) and Dave Reichert (R-WA) have introduced The Personal Holding Company (PHC) Tax Parity and Reinvestment Act (H.R. 6660) in the U.S. House of Representatives. This legislation would reform the Personal Holding Company rules, which were first enacted under the Revenue Act of 1934, and would promote economic growth while simultaneously raising revenue.
“As we move forward with tax reform, it’s critical that we carefully examine and update the tax code to address the realities of international business in today’s global economy,” said Congressman McDermott. “This bill addresses an outdated provision dating back to the 1930’s and is a good example of how thoughtful reforms can raise revenue and promote economic growth.”
Congressman Reichert said, “I am proud to introduce H.R. 6660. It illustrates that good, bipartisan legislation can still be created in Washington, D.C. This bill removes an outdated surtax, raises revenue, and is an example of how bipartisan tax reform can help companies grow and create jobs.”
H.R. 6660 would exclude Controlled Foreign Corporation (CFC) dividends from the definition of PHC income. By doing this, the tax code would be updated in such a way that supports economic growth and increased commerce. Estimates by the Joint Committee on Taxation reveal the legislation would raise $10 million in revenue over ten years.
Background: Reps. Jim McDermott and Dave Reichert are members of the powerful Ways and Means Committee, the chief tax-writing committee of the United States Congress.