June 26, 1997(Key vote)
Title: Budget Reconciliation Bill
Vote Smart's Synopsis:
Vote to pass a bill that provides a net tax decrease over the next ten years.
Amends the Internal Revenue Code to allow a tax credit of up to $500 for each of a taxpayer's qualifying children.
Permits total aggregate tax deduction of up to $40,000 for higher education expenses that have already been paid for.
Waives the 10 percent withdrawal tax on Individual Retirement Account (IRA) distributions if the withdrawal is used to pay higher education expenses.
Establishes the American Dream (AD) IRA, limits contributions to $2,000 annually, and prohibits deductions for contributions to an AD IRA.
Increases the unified estate and gift tax credit to $1 million by the year 2006.
Postpones certain tax-related deadlines if taxpayers are affected by a Federal disaster.
Amends the Tariff Act of 1930 to suspend taxes on the repair of certain vessels for 1 year.
Changes the rules regarding corporate shareholder's basis in stock to state that if the untaxed portion of extraordinary dividends received is greater than the basis, it will be treated as a profit for that taxable year.
Revises the means of translating foreign taxes into dollars by using the average exchange rate for the taxable year.
Exempts individuals whose entire gross income comes from foreign sources and whose amount of creditable foreign taxes paid is under $300 from the foreign tax credit limitation.
Establishes penalties for the unauthorized inspection of tax returns and tax return information.
Repeals the requirement that wholesale liquor dealers post signs outside their stores indicating they sell liquor wholesale.