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Vote Smart's Synopsis:

Vote to adopt an amendment to S 223 that repeals provisions of the Patient Protection and Affordable Care Act, amends the tax code regarding oil and gas companies, and requires a minimum term of 10 years for certain annuities.

Highlights:

• Repeals certain provisions of the Patient Protection and Affordable Care Act, including, but not limited to, the following (Sec. 1101):
• The requirement that business payments of more than $600 made "in consideration for property" be reported to the Internal Revenue Service;
• The requirement that business payments of more than $600 made as "gross proceeds" be reported to the Internal Revenue Service; and
• The inclusion of corporations in the definition of who must report payments of more than $600 to the Internal Revenue Service.

• Eliminates the 9 percent income tax deduction for "qualified production activities income" for major integrated oil companies whose qualified production activities income is derived from oil production (Sec. 1102).

• Requires that any tax paid on oil and gas income by dual capacity taxpayers to a foreign country or possession of the United States shall not be considered a tax, to the extent that such amount exceeds the amount that the taxpayer would have been required to pay if he or she were not a dual capacity taxpayer (Sec. 1103):
• Defines "dual capacity taxpayer" as a person who is subject to a levy of any foreign country or possession and who received or will receive a specific economic benefit from such country or possession.

• Authorizes taxpayers to apply the foreign tax credit separately to combined foreign oil and gas income (Sec. 1104).

• Specifies that combined foreign oil and gas income shall be regarded as a distinct category of income, and shall not be included in any accounting of passive category income or general category income (Sec. 1104).

• Repeals the reduction of the foreign tax credit for foreign oil and gas income for taxable years beginning after the date of enactment of this act (Sec. 1104).

• Repeals the taxpayer's ability to recapture foreign oil and gas losses by re-characterizing such losses as income if the aggregate amount of the losses is greater than the amount of income earned in a taxable year (Sec. 1104).

• Repeals the taxpayer's ability to claim excess taxes paid on foreign oil and gas income in a previous taxable year as a credit against his or her tax liability for a future taxable year (Sec. 1104).

• Specifies that because the taxpayer's ability to claim a credit for excess taxes paid on foreign oil and gas income has been repealed, the taxpayer may choose to claim such excess taxes as taxes paid on ordinary income for the purposes of claiming the credit (Sec. 1104).

• Specifies that interest from an annuity trust which is retained by the grantor shall be treated as qualified interest only if the following conditions apply (Sec. 1105):
• If the right to receive an annuity is guaranteed for a term of at least 10 years;
• If the amount of the annuity does not decrease relative to any prior year during the first 10 years of the term; and
• If the remainder interest has a value greater than zero, as determined at the time of transfer from the trust.

• Specifies that the implementation of the required minimum 10 year term for grantor retained annuity trusts shall apply only to transfers made after the date of the enactment of this act (Sec. 1105).

• Specifies that the amendments to the tax code shall apply only to taxable years beginning after December 31, 2010 (Secs. 1102, 1103, & 1104).

• Specifies that these amendments will not apply if they conflict with any treaty obligation of the United States (Sec. 1103).

Full Bill Text