Tax Equity Act of 1982

Tax Equity Act of 1982 - Title I: Provisions Primarily Affecting Individuals - Amends the Internal Revenue Code to repeal the 1982 and 1983 tax tables for individuals. Directs the Secretary of the Treasury to prescribe tax tables with a maximum reduction of the tax liability of $700 in 1982 and $1,400 in 1983.

Amends the Ecnomic Recovery Tax Act of 1981 to delay the repeal of the maximum tax on personal service income and the reduction in the alternative minimum tax, and the personal holding company tax until 1984. Reinstates the 28 percent maximum tax rate on capital gains, effective 1982.

Repeals provisions for the indexation of individual income tax rates and of deductions for personal exemptions.

Reduces the deduction for net capital gain from 60 to 50 percent. Provides for a corresponding reduction of the charitable deduction for contributions of capital gain property.

Title II: Provisions Primarily Affecting Business- Subtitle A - Lower Corporate Income Tax Rates Only Apply to Small Corporations - Imposes a surtax on corporations of 19.25 percent of the amount by which taxable income exceeds $100,000 but does not exceed $200,000.

Subtitle B - Repeal of Special Leasing Rules - Terminates special rules which allow sale and lease back arrangements of depreciable property between corporations after February 19, 1982. Allows such arrangements in the case of qualified mass commuting vehicles.

Subtitle C - Credits - Reduces the regular percentage of the investment tax credit from ten to seven percent. Specifies that such reduction shall not apply to property constructed or acquired under a contract binding on the taxpayer after a specified period.

Repeals the foreign tax credit for taxes paid to any foreign countries or to U.S. possesisons.

Subtitle D - Provisions Relating to Oil and Gas - Repeals provisions regarding the windfall profit tax which: (1) exempt royalty oil for 1982 and thereafter; (2) reduce the tax imposed on newly discovered oil; and (3) exempt independent producer stripper well oil.

Repeals the option to expense intangible drilling and development costs in the case of oil, gas, and geothermal wells. Repeals the percentage depletion allowance for such wells.

Subltitle E - Treatment of Foreign Income - Repeals the tax exemption for domestic international sales corporations after 1982.

Requires the inclusion in gross income of a U.S. shareholder's pro rata share of the undistributed earnings and profits of a controlled foreign corporation.

Title III: Estate and Gift Tax Provisions - Revises the carryover basis rules for property acquired from a decedent by restoring prior law which provided that beneficiaries receiving property from a decedent's estate retain the decedent's basis in the property.

Repeals the increase in the unified credit against the estate and gift taxes and the reduction in the maximum rates of estate and gift tax which were enacted by the Economic Recovery Tax Act of 1981. Limits the estate tax exclusion of annuities under certain trusts and plans to $500,000.