[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1836 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 1836
To provide for reconciliation pursuant to section 104 of the concurrent
resolution on the budget for fiscal year 2002.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 15, 2001
Mr. Thomas introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide for reconciliation pursuant to section 104 of the concurrent
resolution on the budget for fiscal year 2002.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Economic Growth
and Tax Relief Reconciliation Act of 2001''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Section 15 Not To Apply.--No amendment made by section 2 shall
be treated as a change in a rate of tax for purposes of section 15 of
the Internal Revenue Code of 1986.
SEC. 2. REDUCTION IN INCOME TAX RATES FOR INDIVIDUALS.
(a) In General.--Section 1 is amended by adding at the end the
following new subsection:
``(i) Rate Reductions After 2000.--
``(1) New lowest rate bracket.--
``(A) In general.--In the case of taxable years
beginning after December 31, 2000--
``(i) the rate of tax under subsections
(a), (b), (c), and (d) on taxable income not
over the initial bracket amount shall be 12
percent (as modified by paragraph (2)), and
``(ii) the 15 percent rate of tax shall
apply only to taxable income over the initial
bracket amount.
``(B) Initial bracket amount.--For purposes of this
subsection, the initial bracket amount is--
``(i) $12,000 in the case of subsection
(a),
``(ii) $10,000 in the case of subsection
(b), and
``(iii) \1/2\ the amount applicable under
clause (i) in the case of subsections (c) and
(d).
``(C) Inflation adjustment.--In prescribing the
tables under subsection (f) which apply with respect to
taxable years beginning in calendar years after 2001--
``(i) the Secretary shall make no
adjustment to the initial bracket amount for
any taxable year beginning before January 1,
2007,
``(ii) the cost-of-living adjustment used
in making adjustments to the initial bracket
amount for any taxable year beginning after
December 31, 2006, shall be determined under
subsection (f)(3) by substituting `2005' for
`1992' in subparagraph (B) thereof, and
``(iii) such adjustment shall not apply to
the amount referred to in subparagraph
(B)(iii).
If any amount after adjustment under the preceding
sentence is not a multiple of $50, such amount shall be
rounded to the next lowest multiple of $50.
``(2) Reductions in rates after 2001.--In the case of
taxable years beginning in a calendar year after 2001, the
corresponding percentage specified for such calendar year in
the following table shall be substituted for the otherwise
applicable tax rate in the tables under subsections (a), (b),
(c), (d), and, to the extent applicable, (e).
------------------------------------------------------------------------
``In the case of The corresponding percentages shall be
taxable years substituted for the following percentages:
beginning during --------------------------------------------
calendar year: 12% 28% 31% 36% 39.6%
------------------------------------------------------------------------
2002............. 12% 27% 30% 35% 38%
2003............. 11% 27% 29% 35% 37%
2004............. 11% 26% 28% 34% 36%
2005............. 11% 26% 27% 34% 35%
2006 and 10% 25% 25% 33% 33%
thereafter.
------------------------------------------------------------------------
``(3) Adjustment of tables.--The Secretary shall adjust the
tables prescribed under subsection (f) to carry out this
subsection.''.
(b) Repeal of Reduction of Refundable Tax Credits.--
(1) Subsection (d) of section 24 is amended by striking
paragraph (2) and redesignating paragraph (3) as paragraph (2).
(2) Section 32 is amended by striking subsection (h).
(c) Conforming Amendments.--
(1) Subparagraph (B) of section 1(g)(7) is amended--
(A) by striking ``15 percent'' in clause (ii)(II)
and inserting ``the first bracket percentage'', and
(B) by adding at the end the following flush
sentence:
``For purposes of clause (ii), the first bracket
percentage is the percentage applicable to the lowest
income bracket in the table under subsection (c).''
(2) Section 1(h) is amended--
(A) by striking ``28 percent'' both places it
appears in paragraphs (1)(A)(ii)(I) and (1)(B)(i) and
inserting ``25 percent'', and
(B) by striking paragraph (13).
(3) Section 15 is amended by adding at the end the
following new subsection:
``(f) Rate Reductions Enacted by Economic Growth and Tax Relief
Reconciliation Act of 2001.--This section shall not apply to any change
in rates under subsection (i) of section 1 (relating to rate reductions
after 2000).''.
(4) Section 531 is amended by striking ``equal to'' and all
that follows and inserting ``equal to the product of the
highest rate of tax under section 1(c) and the accumulated
taxable income.''.
(5) Section 541 is amended by striking ``equal to'' and all
that follows and inserting ``equal to the product of the
highest rate of tax under section 1(c) and the undistributed
personal holding company income.''.
(6) Section 3402(p)(1)(B) is amended by striking ``7, 15,
28, or 31 percent'' and inserting ``7 percent, any percentage
applicable to any of the 3 lowest income brackets in the table
under section 1(c),''.
(7) Section 3402(p)(2) is amended by striking ``equal to 15
percent of such payment'' and inserting ``equal to the product
of the lowest rate of tax under section 1(c) and such
payment''.
(8) Section 3402(q)(1) is amended by striking ``equal to 28
percent of such payment'' and inserting ``equal to the product
of the third to the lowest rate of tax under section 1(c) and
such payment''.
(9) Section 3402(r)(3) is amended by striking ``31
percent'' and inserting ``the third to the lowest rate of tax
under section 1(c)''.
(10) Section 3406(a)(1) is amended by striking ``equal to
31 percent of such payment'' and inserting ``equal to the
product of the third to the lowest rate of tax under section
1(c) and such payment''.
(11) Section 13273 of the Revenue Reconciliation Act of
1993 is amended by striking ``28 percent'' and inserting ``the
third to the lowest rate of tax under section 1(c) of the
Internal Revenue Code of 1986''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2000.
(2) Amendments to withholding provisions.--The amendments
made by paragraphs (6), (7), (8), (9), (10), and (11) of
subsection (c) shall apply to amounts paid after the 60th day
after the date of the enactment of this Act.
SEC. 3. PROTECTION OF SOCIAL SECURITY AND MEDICARE.
The amounts transferred to any trust fund under the Social Security
Act shall be determined as if this Act had not been enacted.
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