[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 228 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 228
To amend the Internal Revenue Code of 1986 to exclude from gross income
certain interest amounts received by individuals.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 4, 2007
Mr. Stearns introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income
certain interest amounts received by individuals.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Simple Savings Tax Relief Act of
2007''.
SEC. 2. EXEMPTION OF CERTAIN INTEREST INCOME FROM TAX.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to amounts specifically
excluded from gross income) is amended by inserting after section 115
the following new section:
``SEC. 116. PARTIAL EXCLUSION OF INTEREST RECEIVED BY INDIVIDUALS.
``(a) Exclusion From Gross Income.--Gross income does not include
interest otherwise includible in gross income which is received during
the taxable year by an individual.
``(b) Limitations.--
``(1) Maximum amount.--The aggregate amount excluded under
subsection (a) for any taxable year shall not exceed--
``(A) in the case of any taxable year beginning in
2007, $200 ($400 in the case of a joint return), and
``(B) in the case of any taxable year beginning
after 2007, $400 (twice such amount in the case of a
joint return).
``(2) Inflation adjustment.--In the case of any taxable
year beginning after 2008, the $400 amount contained in
paragraph (1)(B) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for such calendar year by
substituting `calendar year 2007' for `calendar year
1992' in subparagraph (B) thereof.
If any increase under the preceding sentence is not a
multiple of $10, such increase shall be rounded to the
nearest multiple of $10.
``(c) Interest.--For purposes of this section, the term `interest'
means--
``(1) interest on deposits with a bank (as defined in
section 581),
``(2) amounts (whether or not designated as interest) paid
in respect of deposits, investment certificates, or
withdrawable or repurchasable shares, by--
``(A) a mutual savings bank, cooperative bank,
domestic building and loan association, industrial loan
association or bank, or credit union, or
``(B) any other savings or thrift institution which
is chartered and supervised under Federal or State law,
the deposits or accounts in which are insured under Federal or
State law or which are protected and guaranteed under State
law.
``(d) Certain Nonresident Aliens Ineligible for Exclusion.--For
purposes of this section, in the case of a nonresident alien
individual, subsection (a) shall apply only in determining the taxes
imposed for the taxable year pursuant to sections 871(b)(1) and
877(b).''.
(b) Conforming Amendments.--
(1) Subparagraph (A) of section 32(i)(2) of such Code is
amended by inserting ``(determined without regard to section
116)'' before the comma.
(2) Subparagraph (B) of section 86(b)(2) of such Code is
amended to read as follows:
``(B) increased by the sum of--
``(i) the amount of interest received or
accrued by the taxpayer during the taxable year
which is exempt from tax, and
``(ii) the amount of interest received
during the taxable year which is excluded from
gross income under section 116.''.
(3) Subsection (d) of section 135 of such Code is amended
by redesignating paragraph (4) as paragraph (5) and by
inserting after paragraph (3) the following new paragraph:
``(4) Coordination with section 116.--This section shall be
applied before section 116.''.
(4) Paragraph (2) of section 265(a) of such Code is amended
by inserting before the period ``, or to purchase or carry
obligations or shares, or to make deposits, to the extent the
interest thereon is excludable from gross income under section
116''.
(5) Subsection (c) of section 584 of such Code is amended
by adding at the end the following new flush sentence:
``The proportionate share of each participant in the amount of interest
received by the common trust fund and to which section 116 applies
shall be considered for purposes of such section as having been
received by such participant.''.
(6) Subsection (a) of section 643 of such Code is amended
by redesignating paragraph (7) as paragraph (8) and by
inserting after paragraph (6) the following new paragraph:
``(7) Interest.--There shall be included the amount of any
interest excluded from gross income pursuant to section 116.''.
(7) The table of sections for part III of subchapter B of
chapter 1 of such Code is amended by inserting after the item
relating to section 115 the following new item:
``Sec. 116. Partial exclusion of dividends and interest received by
individuals.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
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