Working American Competitiveness Act

Working American Competitiveness Act - Amends the Internal Revenue Code to allow a taxpayers to elect to exclude from gross income, without limitation, earned income (i.e., income for services performed) from sources within a foreign country.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3496 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 3496

To amend the Internal Revenue Code of 1986 to eliminate the limitation 
    on the foreign earned income exclusion, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 13, 2006

  Mr. DeMint introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to eliminate the limitation 
    on the foreign earned income exclusion, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Working American Competitiveness 
Act''.

SEC. 2. ELIMINATION OF LIMITATION ON FOREIGN EARNED INCOME EXCLUSION.

    (a) In General.--Subsections (a) and (b) of section 911 of the 
Internal Revenue Code of 1986 (relating to citizens or residents of the 
United States living abroad) are amended to read as follows:
    ``(a) Exclusion From Gross Income.--At the election of a qualified 
individual, there shall be excluded from the gross income of such 
individual, and exempt from taxation under this subtitle, for any 
taxable year, the foreign earned income of such individual.
    ``(b) Foreign Earned Income.--For purposes of this section--
            ``(1) In general.--The term `foreign earned income' with 
        respect to any individual means the amount received by such 
        individual from sources within a foreign country or countries 
        which constitute earned income attributable to services 
        performed by such individual during the period described in 
        subparagraph (A) or (B) of subsection (d)(1), whichever is 
        applicable.
            ``(2) Certain amounts not included in foreign earned 
        income.--The foreign earned income for an individual shall not 
        include amounts--
                    ``(A) received as a pension or annuity,
                    ``(B) paid by the United States or an agency 
                thereof to an employee of the United States or an 
                agency thereof,
                    ``(C) included in gross income by reason of section 
                402(b) (relating to taxability of beneficiary of 
                nonexempt trust) or section 403(c) (relating to 
                taxability of beneficiary under a nonqualified 
                annuity), or
                    ``(D) received after the close of the taxable year 
                following the taxable year in which the services to 
                which the amounts are attributable are performed.''.
    (b) Conforming Amendments.--
            (1) Section 911 of the Internal Revenue Code of 1986 is 
        amended by striking subsection (c) and by subsections (e) and 
        (f) as subsections (c) and (e), respectively.
            (2) Section 911(d) of such Code is amended by striking 
        paragraph (7) and by redesignating paragraph (8) as paragraph 
        (7).
            (3) Section 1402(a)(11) of such Code is amended by striking 
        ``section 911(a)(1)'' and inserting ``section 911(a)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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