US Federal 2023-2024 Regular Session

US Federal House Bill HB1028

Introduced
2/14/23  

Caption

To amend the Internal Revenue Code of 1986 to repeal the limitation on the cover over of distilled spirits taxes to the Virgin Islands and Puerto Rico.

Impact

The repeal of the limitation may significantly affect state and local revenues derived from distilled spirits taxation in Puerto Rico and the Virgin Islands. By removing obstacles currently in place, it would likely lead to increased tax revenues in those areas from distilled spirits sales, potentially benefiting local governments financially. Community discussions surrounding the bill may revolve around its anticipated capacity to stimulate local economies through alcohol sales and production, which is crucial for job creation and economic development.

Summary

House Bill 1028 aims to amend the Internal Revenue Code of 1986 by repealing the limitation on the cover over of distilled spirits taxes to the Virgin Islands and Puerto Rico. This legislative change is intended to impact the way taxes on distilled spirits are handled, potentially allowing for a more favorable tax treatment of such products in the territories, thereby enhancing their economic circumstances and local distilleries' competitiveness. The bill advocates the need for streamlined tax applications that reflect the needs and unique statuses of these territories.

Contention

However, there may be points of contention among lawmakers and constituents regarding the implications of relaxing tax limitations. Critics could raise concerns about the dependency of territories on alcohol-related revenues, indicating the potential long-term social issues that could follow from increased consumption and accessibility of alcohol. Additionally, debates may arise over the fairness of tax structures and whether this change favors specific industries at the expense of broader fiscal health across various sectors within these territories.

Companion Bills

US SB1477

Related A bill to amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.

Previously Filed As

US HB1378

To amend the Internal Revenue Code of 1986 to extend the temporary increase in limitation on the cover over of distilled spirits taxes to Puerto Rico and the Virgin Islands.

US SB1986

A bill to amend the Internal Revenue Code of 1986 to extend the temporary increase in limitation on the cover over of distilled spirits taxes to Puerto Rico and the Virgin Islands.

US SB1938

A bill to amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.

US HB366

To amend the Internal Revenue Code of 1986 to cover into the treasury of the Virgin Islands revenue from tax on fuel produced in the Virgin Islands and entered into the United States.

US HB25

FairTax Act of 2023 This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2025, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions. Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines. The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury. Tax revenues are to be allocated among (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund. No funding is authorized for the operations of the Internal Revenue Service after FY2027. Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.

US HB7034

To amend the Internal Revenue Code of 1986 to eliminate the dollar limitations on the exclusion of gain from sales of principal residences, and for other purposes.

US HB108

Small Business Prosperity Act of 2023 This bill modifies the tax deduction for qualified business income to (1) make such deduction permanent, (2) limit to 21% the top tax rate on qualified business income, (3) repeal the limitation on the deduction based on amount of wages paid, and (4) revise the definition of qualified trade or business to mean any trade or business other than the trade of business of performing services as an employee. The bill provides that a change in the organizational structure of a corporation is not a taxable event if there is no change among the owners, their ownership interests, or the assets of the organization, The bill repeals the estate tax after 2022.

US HB127

Protection from Obamacare Mandates and Congressional Equity Act This bill alters provisions relating to the requirement to maintain minimum essential health care coverage (i.e., the individual mandate), as well as provisions relating to health care coverage for certain executive branch and congressional employees. Specifically, the bill exempts individuals from the requirement to maintain minimum essential health care coverage if they reside in a county where fewer than two health insurers offer insurance on the health insurance exchange. Under current law, there is no penalty for failing to maintain minimum essential health care coverage. The bill also requires certain executive branch and congressional employees to participate in health insurance exchanges. Under current law, Members of Congress and their designated staff are required to obtain coverage through health insurance exchanges, rather than the Federal Employee Health Benefits (FEHB) Program. Current regulations authorize government contributions toward such coverage and require Members of Congress to designate which members of their staff are required to obtain coverage through an exchange. The bill requires all congressional staff, including employees of congressional committees and leadership offices, to obtain coverage through an exchange. The bill also prohibits Members of Congress from having the discretion to determine which of their employees are eligible to enroll through an exchange. Further, the President, Vice President, and executive branch political appointees must also obtain coverage through exchanges, rather than FEHB. The government is prohibited from contributing to or subsidizing the health insurance coverage of the officials and employees subject to this requirement, including Members of Congress and their staff.

US HB1425

To amend the Internal Revenue Code of 1986 to increase the amount of the child tax credit, to make such credit fully refundable, to remove income limitations from such credit, and for other purposes.

US HB257

Earned Income Tax Credit Equity for Puerto Rico Act of 2021 This bill makes residents of Puerto Rico eligible for the federal earned income tax credit.

Similar Bills

No similar bills found.