Expressing the sense that the House of Representatives must take responsible and timely action to address the Federal tax loophole that allows Act 22 decree holders to legally evade Federal taxes.

11/18/2024, 4:58 PM

Summary of Bill HRES 1553

Bill 118 HRES 1553, titled "Expressing the sense that the House of Representatives must take responsible and timely action to address the Federal tax loophole that allows Act 22 decree holders to legally evade Federal taxes," is a resolution that calls for action to close a tax loophole that benefits Act 22 decree holders.

Act 22 decrees are tax incentives offered by certain US territories, such as Puerto Rico, to attract wealthy individuals to establish residency in those territories. These individuals, known as Act 22 decree holders, are able to legally avoid paying federal taxes on their income earned in the territory.

The resolution expresses the sense that the House of Representatives must take responsible and timely action to address this tax loophole. It highlights the unfairness of allowing wealthy individuals to legally evade federal taxes while the average American taxpayer is required to pay their fair share. The resolution does not propose specific legislative changes, but rather serves as a call to action for Congress to address this issue. It emphasizes the importance of closing loopholes that allow for tax evasion and ensuring that all individuals, regardless of their wealth or status, contribute their fair share to the federal tax system. Overall, Bill 118 HRES 1553 aims to bring attention to the issue of tax evasion by Act 22 decree holders and urges Congress to take action to address this loophole in a responsible and timely manner.

Congressional Summary of HRES 1553

This resolution requires the House of Representatives to address the revenue impact and application of tax law that excludes certain income sourced to Puerto Rico from taxation by the United States and Puerto Rico, particularly the application of the Act to Promote the Relocation of Individual Investors to Puerto Rico (also known as Act 22), which provides tax benefits to residents of Puerto Rico.

Under current law, income, dividends, interest, and some capital gains sourced to Puerto Rico may be excluded or exempt from tax by both the United States and Puerto Rico. The Internal Revenue Service initiated an audit and compliance campaign targeting individuals who attempt to avoid tax by improperly claiming to be a resident of Puerto Rico or erroneously sourcing income to Puerto Rico (rather than the United States) to claim tax exemptions and exclusions.

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Current Status of Bill HRES 1553

Bill HRES 1553 is currently in the status of Bill Introduced since October 25, 2024. Bill HRES 1553 was introduced during Congress 118 and was introduced to the House on October 25, 2024. Bill HRES 1553's most recent activity was Referred to the House Committee on Ways and Means. as of October 25, 2024

Bipartisan Support of Bill HRES 1553

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

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Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HRES 1553

Primary Policy Focus

Taxation

Alternate Title(s) of Bill HRES 1553

Expressing the sense that the House of Representatives must take responsible and timely action to address the Federal tax loophole that allows Act 22 decree holders to legally evade Federal taxes.Expressing the sense that the House of Representatives must take responsible and timely action to address the Federal tax loophole that allows Act 22 decree holders to legally evade Federal taxes.

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