HomeMy WebLinkAboutResolutions - 1999.09.23 - 25866September 23, 1999
REPORT (Misc. #99244)
BY: GENERAL GOVERNMENT COMMITTEE -Shelley G. Taub, Chairperson
RE: MR #99244 Support - H.R. 2488--Taxpayer Refund and Relief Act of 1999
TO: the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
The General Government Committee having reviewed the above referenced resolution on September 13, 1999,
recommends to the Oakland County Board of Commissioners the resolution be adopted.
Chairperson, on behalf of the General Government Committee, I move the acceptance of the foregoing report.
GENERAL GOVERNMENT COMMITTEE
General Government Committee Vote:
Motion carried on a roll call vote with Taub, Dingeldey, Law, Garfield, Patterson and Sever voting yes.
McPherson, Friedman-Appel and Melton voting no.
John P.
Co , is
yr, 6,1+
loch, Chairperson
ner, District #22
Shelley G. T
Commissioner, District #12
Miscellaneous Resolution # 99244
BY: Commissioners John P. McCulloch, District #22, Shelley G. Taub, District #12
RE: Support - H.R. 2488--Taxpayer Refund and Relief Act of 1999
TO: Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, Congressman Joseph K. Knollenberg co-sponsored H.R. 2488, the
Taxpayer Refund and Relief Act of 1999 that will allow American taxpayers to keep $300
billion more of their own money over the next decade; and
WHEREAS, this tax proposal will have a significant and positive economic impact
for the citizens of Oakland County by proposing to: eliminate the marriage penalty,
eliminate the death tax and provide capital gains tax relief; and
WHEREAS, this tax proposal offers much needed assistance to families and senior
citizens by proposing: an increase in the IRA contribution, deduction of prescription drug
insurance, health care tax deductions and education incentives; and
NOW THEREFORE BE IT RESOLVED THAT the Oakland County Board of
Commissioners does hereby support H.R. 2488 - The Taxpayer Refund and Relief Act of
1999 and urges the nations leaders to support this legislation which will address our
burdensome tax system:
BE IT FINALLY RESOLVED THAT copies of this adopted resolution be forwarded
to the Oakland County federal legislators, the National Association of Counties, and to
Oakland County's legislative agents.
Mr. Chairperson, we move the adoption of the foregoing Resolution.
Resolution #99244 September 9, 1999
The Chairperson referred the resolution to the General Government
Committee. There were no objections.
3ill Summar: & Status h ttp://thomas.loc. go vicgi-b irt/bdquerylz?d 1 O6:FiRO2488:jL
Rep Crane. Philip M. - 07/14/99 Rep English, Phil - 07/14/99
Rep McInnis. Scott - 07/14/99 Rep Hill, Rick - 07'14/99
Rep Thomas, William M. (Bull - 07/16/99 Rep Isakson. Johnny - 07/16/99
Rep Smith. Lamar - 0716/99 Rep Foley, Mark - 0716/99
SUMMARY:
( AS INTRODUCED)
TABLE OF CONTENTS:
• Tido Broad-Based Tax Relief •
• Subtitle A: 10-Percent Reduction in Individual Income Tax Rates •
• Subtitle B: Marriage Penalty Tax Relief
•
• Subtitle C: Repeal of Alternative Minimum Tax on Indi‘iduals
• Title II: Relief from Taxation on Savings and Investments
• Title III: Incentives for Business Investment and Job Creation
• Title IV: Education Savings Incentives
• Title V: Health Care Provisions
• Title VI: Estate Tax Relief
•
• Subtitle A: Estate, Gift, and Generation-Skipping Taxes; Repeal of Step Up in Basis At Death
•
• Subtitle B: Reductions of Estate and Gift Tax Rates Prior to Repeal
•
• Subtitle C: Unified Credit Replaced Unified Exemption Amount
•
• Subtitle D: Modifications of Generation-Skipping Tax
• Title VII: Tax Relief for Distressed Communities and Industries
•
• Subtitle A: American Community Renewal Act of 1999
•
• Subtitle B: Farming Incentive
•
• Subtitle C: Oil and Gas Incentive
•
• Subtitle D: Timber Incentive
•
• Subtitle E: Steel Industry Incentive
• Title VIII: Relief for Small Businesses
• Title IX: International Tax Relief
• Title X: Provisions Relating to Tax-Exempt Organizations
• Title XI: Real Estate Provisions
•
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• Subtitle A: Provisions Relating to Real Estate Investment Trusts
• Subtitle 131 Modification of At-Risk Rules for Publicly Traded Securities
• Subtitle C: Treatment of Construction Allowances and Certain Contributions To Capital of
Retailers
• Title XII: Provisions Relating to Pensions
•
• Subtitle A: Expanding Coverage
• Subtitle B: Enhancing Fairness for Women
• Subtitle CI Increasing Portability for Participants
•
• Subtitle D: Strengthening Pension Security and Enforcement
• Subtitle E: Reducing Regulatory Burdens
• Title XIII: Miscellaneous Provisions •
• Subtitle A: Provisions Primarily Affecting Individuals
• Subtitle B: Provisions Primarily Affecting Businesses
• Subtitle C: Provisions Relating to Excise Taxes
• Subtitle D: Other Provisions
• Subtitle E: Tax Court Provisions
• Title XIV: Extensions of Expiring Provisions
• Title XV: Revenue Offsets
• Title XVI: Technical Corrections
Financial Freedom Act of 1999 - Title I: Broad-Based Tax Relief - Subtitle A: 10-Percent Reduction
in Individual Income Tax Rates - Amends the Internal Revenue Code (IRC) to provide for the phase-in
of a ten percent individual income tax rate.
Subtitle B: Marriage Penalty Tax Relief - Phases-in a standard deduction on a joint (married) return
equal to twice the deduction of a single (not married) return.
(Sec. 112) Makes the modified adjusted gross income limitation applicable in determining the deduction
for interest on educational loans on a joint return double the limit of a single return.
(Sec. 113) Raises from $100,000 (currently applicable to any filing status) to $160,000 (in the case of a
joint return) the adjusted gross income limit applicable to rollovers from regular IRAs to Roth IRAs.
Subtitle C: Repeal of Alternative Minimum Tax on Individuals - Phases-in a repeal of the alternative
minimum tax for individuals.
Title II: Relief from Taxation on Savings and Investments - Excludes from gross income a limited
amount of dividends and interest otherwise includible in gross income.
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(Sec. 202) Reduces the individual capital gains tax rate.
(Sec. 203) Applies the capital gains tax rates to capital gains of designated settlement funds.
(Sec. 204) Provides, with respect to exclusion of gain from the sale of a principal residence. for the
suspension of the five-year ownership and use requirement during the time that a member (or spouse) of
the uniformed services or Foreign Service is on qualified official extended duty as defined P‘r this Act).
Sec. 205) Treats certain dealer derivative financial instruments, hedging transactions, and supplies as
ordinary assets.
(Sec. 206) Revises provisions concerning the worthless securi ,.ies of financial institutions.
Title III: Incentives for Business Investment and Job Creation - Phases -in a corporate capital gains
tax rate reduction.
(Sec. 302) Phases-in a repeal of the alternative minimum tax on corporations. Repeals the 90 percent
limitation on the utilization of the foreign tax credit.
Title IV: Education Savings Incentives - Renames education individual retirement accounts education
savings accounts. Increases to $2.000 the maximum annual contribution allowed to such accounts.
Permits tax-free expenditures from such accounts for elementary and secondary education expenses
required for attendance at a public. private, or religious school, or for homeschooling that meets State
requirements. Waives certain age limitations in cases of children with special needs. Permits
corporations to contribute to such accounts.
(Sec. 402) Permits private educational institutions to maintain qualified tuition programs which are
comparable to qualified State tuition programs. Excludes qualified distributions from such accounts
from gross income.
(Sec. 403) Excludes from gross income certain amounts received under the National Health Corps
Scholarship Program, the Armed Forces Health Professions Scholarship and Financial Assistance
Program, the National Institutes of Health Undergraduate Scholarship Program, or any similar State
program.
(Sec. 404) Increases the amount by which certain governmental bonds used to finance public school
capital expenditures may be exempted from specified arbitrage bond provisions.
(Sec. 405) Modifies arbitrage rebate rules applicable to public school construction bonds.
(Sec. 406) Repeals the 60-month limitation period on the allowance of the interest deduction on loans
for higher education expenses.
Title V: Health Care Provisions - Phases-in a 100 percent deduction (for both itemizers and
nonitemizers) for the health and long-term care insurance costs of individuals not participating in
employer -subsidized health plans.
(Sec. 502) Permits offering long-term care insurance under cafeteria plans and flexible spending
arrangements.
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(Sec. 503) Revises medical savings accounts provisions to: ( I) repeal the limitation on the number of
accounts; (2) make all employers (currently limited to small employers) eligible to offer accounts; (3)
increase contribution deduction amounts; (4) permit employer and employee contributions; (5) reduce
high deductible health plan deductibles: and (6) permit accounts to be offered under cafeteria plans.
(Sec. 504) Permits a taxpayer an additional exemption for certain elderly family members who need
long-term care and who reside with the taxpayer.
(Sec. 505) Expands the time frame for human clinical trials qualifying for the orphan drug credit.
(Sec. 506) Adds to the list of taxable vaccines any conjugate vaccine of streptococcus pneurnoniae.
Title VI: Estate Tax Relief - Subtitle A: Estate, Gift, and Generation-Skipping Taxes; Repeal of
Step Up in Basis At Death - Repeals the estate tax, gift tax. and the tax on generation-skipping
transfers, effective January I, 2009.
(Sec. 602) Terminates, effective January I, 2009, the current provisions providing for determining the
basis of property the acquired from a decedent and sets forth new provisions for determining the basis of
certain property acquired from a decedent dying after December 31. 2008.
Subtitle B: Reductions of Estate and Gift Tax Rates Prior to Repeal Sets forth additional estate and
gift tax reductions applicable to the period prior to repeal.
Subtitle C: Unified Credit Replaced Unified Exemption Amount - Replaces the unified credit with a
unified exemption amount.
Subtitle D: Modifications of Generation -Skipping Tax - Amends provisions concerning the special
rules for allocation of the generation-skipping tax (GST) exemption to provide, as a general rule, that:
(1) if any individual makes an indirect skip during such individual's lifetime, any unused portion of such
GST exemption shall be allocated to the property transferred to the extent necessary to make
the inclusion ratio for such property zero; and (2) if the amount of the indirect skip exceeds such unused
portion, the entire unused portion shall be allocated to the property transferred.
Title VII: Tax Relief for Distressed Communities and Industries - Subtitle A: American
Community Renewal Act of 1999 - Authorizes the Secretary of Housing and Urban Development to
designate (upon local or State nomination) up to 20 renewal communities, of which at least four shall be
in rural areas.
Requires for nomination purposes that; (1) the area be experiencing high rates of poverty and
unemployment and general distress; and (2) State and local governments enter into written contracts
with community organizations to promote specified economic growth and employment activities.
Excludes from gross income capital gains on the sale or exchange of a qualified community asset (stock,
business property. or partnership interest) held for more than five years.
Allows a specified deduction for amounts paid into a family development account on behalf of a renewal
community resident. Excludes from gross income account distributions used for qualified family
development expenses (postsecondary education, fast-home purchase, business capitalization, medical,
and rollovers). Provides a penalty (with exceptions) in addition to inclusion as gross income for
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nonqualifying distributions.
Provides for designation of up to five qualifying renewal communities as matching demonstration areas
eligible to receive family development account matching contributions.
Authorizes: (1) designation of earned income tax credit payments for family development account
deposit: (2) a commercial building revitalization tax deduction; (3) increased first year expensing for
renewal community businesses: (4) extension of environmental remediation cost expensing and the work
opportunity credit for renewal communities: and (5) similar tax treatment of renewal communities and
enterprise zones for specified youth residence requirements.
Permits a deduction for contributions to a family development account whether or not a taxpayer
itemizes.
(Sec. 705) Makes conforming amendments to provisions respecting: (1) tax on excess contributions and
prohibited transactions: (2) trust and annuity information; (3) tax exemption applications; and (4) the
commercial revitalization credit.
(Sec. 706) Sets forth reporting requirements.
Subtitle B: Farming Incentive - Disregards any option to accelerate the receipt of any payment under a
production flexibility contract which is payable under the Federal Agriculture Improvement and Reform
Act of 1996, as in effect on the date of the enactment of this Act, in determining the taxable year for
which such payment is properly includible in gross income for purposes of the IRC.
Subtitle C: Oil and Gas Incentive - Permits a five-year net operating loss carryback for losses
attributable to operating mineral interests of independent oil and gas producers.
Subtitle D: Timber Incentive - Increases the maximum permitted amortization of reforestation
expenditures.
Subtitle E: Steel Industry Incentive - Increases, for steel companies, the credit allowed against the
regular tax for prior year minimum tax liability.
Title VIII: Relief for Small Businesses - Provides for the deduction of 100 Percent of the health
insurance costs of self-employed individuals.
(Sec. 802) Increases to $30,000 the amount which may be expensed as section 179 property.
(See. 803) Makes the 6.2 percent Federal Unemployment Tax Act rate effective through calendar year
2004 (currently, 2007) and the 6.0 percent rate effective through calendar year 2005 (currently, 2008).
(Sec. 804) Phases-in an 80 percent meal expenses deduction.
Title IX: International Tax Relief - Permits, for interest allocation rule purposes, treating each electing
worldwide affiliated group an affiliated group.
(Sec. 902) Revises provisions concerning the of application of look-thru rules to dividends from
noncontrolled section 902 corporations to provide, in general, that any dividend from a noncontrolled
section 902 corporation with respect to the taxpayer shall be treated as income in a separate category in
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proportion to the ratio of: (1) the portion of earnings and profits attributable to income in such category;
to (2) the total amount of earnings and profits.
(Sec. 903) Excludes from the definition of "foreign base company oil related income" the pipeline
transportation of oil or gas within such foreign country.
(Sec. 904) Excludes from the definition of "foreign base company services income" income derived in
connection with the performance of services which are related to the transmission of high voltage
electricity.
(Sec. 905) Defines overall domestic loss and sets forth provisions for determining taxable income for
any taxpayer sustaining such a loss.
(Sec. 906) Repeals the special rule for military property with respect to exempt forei gn trade income.
(Sec. 907) Exempts from taxation certain regulated investment company dividends received by
nonresident aliens. Treats certain regulated investment company stock owned by nonresident noncitizens
as non-U.S. property for estate tax purposes.
(Sec. 908) Repeals section 907 (Special Rules In Case of Foreign Oil and Gas Income) of the IRC.
(Sec. 909) Requires a study and a report on the feasibility of treating all countries in the European Union
as one country under subpart F (Controlled Foreign Corporations) of part III (Income From Sources
Without the United States) of subchapter N (Tax Based on Income From Sources Within or Without the
United States) of chapter 1 (Normal Taxes and Surtaxes) of the IRC.
(Sec. 910) Permits the President to determine that the continued denial of the foreign tax credit with
respect to a foreign country is no longer in the national interests of the United States.
(Sec. 911) Treats advance pricing agreements as confidential taxpayer information.
(Sec. 912) Phases in an increase in the dollar limitation on the section 911 (Citizens or Residents of the
United States Living Abroad) exclusion.
Title X: Provisions Relating to Tax-Exempt Organizations - Exempts an organization from income
tax if it is created by a State to PROVIDE property and casualty insurance coverage for property for
which such coverage is otherwise unavailable.
(Sec. 1002) Amends the Tax Reform Act of 1984 to revise the special arbitrage rule.
(Sec. 1003) Amends the IRC to disallow a deduction for the transfer of a charitable contribution to or for
the use of a State or charitable tax-exempt organization or trust if in connection with such transfer: (1)
THE organization directly or indirectly pays, or has previously paid, any premium on any personal
benefit contract (life insurance, annuity, or endowment contract, also known as charitable split-dollar life
insurance) with respect to the transferor; or (2) there is an understanding (side agreement) that any
person will directly or indirectly pay any premium on such contract with respect to such transferor.
Imposes on such organization an excise tax equal to the premiums paid by it on the personal benefit
contract.
Provides that certain persons shall not be treated as indirect beneficiaries: (1) in certain cases in which a
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partnerships as qualifying income of regulated investment companies. Excludes distributions from the
source-based inclusion limitation applicable to other partnerships.
(Sec. 1312) Applies specified passive activity provisions for publicly traded partnerships to regulated
investment companies.
(Sec. 1313) Makes certain large electric trucks, vans and buses eligible for the $50,000 deduction
clean-fuel property deduction, but not the $4,000 electric vehicle credit.
(Sec. 1314) Modifies the special rules concerning nuclear decommissioning costs.
(Sec. 1315) Repeals certain provisions concerning the filing of consolidated returns by insurance
companies,
Subtitle C: Provisions Relating to Excise Taxes - Combines the Hazardous Substance Superfund and
the Leaking Underground Storage Tank Trust Fund (LUST) into the Environmental Remediation Trust
Fund (established by this Act).
(Sec. 1322) Repeals the: (1) LUST taxes on fuel used in trains; and (2) 4.3-cents-per-gallon General
Fund excise tax on diesel fuel used by railroads and on fuels used by barges operating on designated
inland waterways.
(Sec. 1323) Repeals the excise tax on fishing tackle boxes.
Subtitle D: Other Provisions - Amends IRC provisions concerning State private activity bond volume
limits to repeal the adjustment for years after 1987.
(Sec. 1332) Permits, in general, an electing Alaska Native Settlement Trust to exclude contributions,
during the year of contribution, from the gross income of a beneficiary.
Subtitle E: Tax Court Provisions - Authorizes the Tax Court to charge a filing fee of up to $60 in all
cases commenced by petition.
(Sec. 1342) Authorizes the Tax Court to make the $30 practice fee available to pro se taxpayers.
(Sec. 1343) Permits the Tax Court to apply the doctrine of equitable recoupment to the same extent that
it is available in civil tax cases.
Title XIV: Extensions of Expiring Provisions - Extends, for five years, the: (1) research credit; (2)
subpart F (Controlled Foreign Corporations) exemption for active income financing; (3) taxable income
limit on percentage depletion for marginal oil and gas wells; and (4) work opportunity credit and the
welfare-to-work credit.
Title XV: Revenue Offsets - Amends provisions involving returns relating to the cancellation of
indebtedness by certain entities to include within the definition of "applicable financial entity" any
organization a significant trade or business of which is the lending of money.
(Sec. 1502) Directs the Secretary to establish a program requiring the payment of user fees for requests
to the IRS for ruling letters, opinion letters, determination letters, and other similar requests. Terminates
fees October 1. 2007.
(Sec. 1503) Modifies rules relating to the exemption of certain ten or more employer plans from welfare
benefit fund provisions.
(Sec. 1504) Increases the withholding rate for nonperiodic distributions from 10 to 15 percent.
(Sec. 1505) Makes a controlled entity ineligible to be a REIT. Defines "controlled entity."
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HE FOREGOING RESOLUTION
/14
Resolution #99244 September 23, 1999
Moved by Taub supported by Jensen the General Government Committee Report
be accepted.
A sufficient majority having voted therefor, the report was accepted.
Discussion followed.
Moved by Taub supported by Jensen the resolution be adopted.
AYES: Dingeldey, Douglas, Galloway, Garfield, Jensen, Law, McCulloch,
Millard, Moffitt, Obrecht, Palmer, Patterson, Schmid, Sever, Taub, Amos,
Colasanti, Devine. (18)
NAYS: Gregory, McPherson, Melton, Suarez, Appel, Causey-Mitchell,
Coleman. (7)
A sufficient majority having voted therefor, the resolution was adopted.
POtfreon, County Executive 0E06
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the
foregoing resolution is a true and accurate copy of a resolution adopted by the
Oakland County Board of Commissioners on September 23, 1999 with the original
record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the
County of Oakland at Pontiac, Michigan this 23rd day,of September, 1999.
G. William Caddell, County Clerk