House Proposal Would Simplify Foundation Excise-Tax Rate

House lawmakers have introduced a bill that would change the way private foundations pay taxes on their investment income by creating a flat tax rate.

The bill — which was introduced by Rep. Erik Paulsen, a Minnesota Republican, and Danny Davis, an Illinois Democrat — has the same language as proposed legislation that Sen. Charles Schumer, Democrat of New York, introduced in the Senate in March.

Both the House and Senate bills call for eliminating the existing two-tiered tax rate and setting a flat tax of 1.39 percent.