Bill > HR99

This bill, the Fair and Simple Tax Act of 2011, proposes significant changes to the U.S. tax code, aiming to simplify individual income taxes by introducing an alternative system with three tax brackets (10%, 15%, and 30%), and to repeal the estate and gift taxes, which are taxes on the transfer of wealth upon death or as a gift. It also seeks to make permanent and adjust for inflation the exemption amounts for the Alternative Minimum Tax (AMT), a parallel tax system designed to ensure that higher-income individuals pay at least a minimum amount of tax. For corporations, the bill would reduce the maximum income tax rate to 25%, and for individuals, it would lower the maximum tax rate on capital gains and dividends to 10%. Additionally, it introduces provisions to adjust the basis of capital assets for inflation when calculating gains or losses, and establishes new tax-exempt accounts for retirement, lifetime savings, and lifetime skills development. The bill also expands the medical care tax deduction by removing the adjusted gross income (AGI) threshold for individuals under 65 who lack employer-provided health coverage, and makes permanent the tax credit for increasing research activities. Finally, it repeals the sunset provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003, effectively making many of their tax relief measures permanent.