Tax Reform Act

[AI summary unavailable — showing source text] Tax Reform Act - Revises the Internal Revenue Code by replacing the present $750 personal exemption with a $205 tax credit. Repeals the percentage depletion allowance on oil and gas. Imposes for each taxable year, with respect to the income of every person, a tax equal to 10 percent of the amount by which the sum of the items of tax preference exceeds $10,000. Reduces the foreign tax credit in the case of foreign losses. Provides a separate foreign tax credit limitation on foreign taxes paid with respect to income derived from foreign mineral production where the foreign government to which the taxes are paid also holds the rights to, or receives royalties relating to, the minerals with respect to which the income is derived, or where the foreign country imposes a higher effective tax rate on mineral income than on other types of income. Repeals the deduction allowed for intangible drilling costs for foreign exploration. Requires every person who is a United States shareholder of a controlled foreign corporation to include in his gross income his pro rata share of the corporation's earnings and profits for a taxable year. Repeals the tax exemption for a Domestic International Sales…