Comprehensive Tax Restructuring and Simplification Act of 1994

TABLE OF CONTENTS:

Title I: Repeal of Corporate Income Tax

Title II: Individual Income Tax Relief

Title III: Business Activities Tax

Comprehensive Tax Restructuring and Simplification Act of 1994 - Title I: Repeal of Corporate Income Tax - Amends the Internal Revenue Code to terminate corporate income tax. Provides for taxing corporations based on business activities.

Treats distributions to shareholders as ordinary income of the shareholder.

Allows certain businesses to elect to be taxed as domestic corporations.

Title II: Individual Income Tax Relief - Reduces the payroll tax (old-age, survivors and disability insurance) for employers and employees by 50 percent.

Increases the standard deduction for low-income taxpayers.

Establishes an individual tax credit for low-income taxpayers and provides for advance payment of such credit.

Title III: Business Activities - Imposes a business activities tax of 14.5 percent on the amount by which gross business receipts exceed business purchases.

Treats the following as business activities of a governmental entity: (1) public utility services; (2) mass transit services; (3) postal services; and (4) any activity not involving the exercise of any essential governmental function. Excepts certain tax-exempt organizations from the tax unless the activity constitutes an unrelated trade or business.

Provides the treatment for post-sale price adjustments, refunds, and bad debts. Sets forth special rules for the administration of the business activity tax.

Allows a tax credit for taxable periods of excess business purchases.

Exempts certain small businesses from the business activity tax.