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106th Congress                                            Rept. 106-467
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
                 WAGE AND EMPLOYMENT GROWTH ACT OF 1999

                                _______
                                

               November 11, 1999.--Ordered to be printed

                                _______
                                

    Mr. Archer, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 3081]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Ways and Means, to whom was referred the 
bill (H.R. 3081) to increase the Federal minimum wage and to 
amend the Internal Revenue Code of 1986 to provide tax benefits 
for small businesses, and for other purposes, having considered 
the same, report favorably thereon with amendments and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
  I. INTRODUCTION....................................................74
          A. Purpose and Summary.................................    74
          B. Background and Need for Legislation.................    84
          C. Legislative History.................................    84
 II. EXPLANATION OF THE REVENUE PROVISIONS OF THE BILL...............85
     TITLE II. SMALL BUSINESS PROVISIONS.............................85
          A. Accelerate 100-Percent Self-Employed Health 
              Insurance Deduction (Sec. 201).....................    85
          B. Increase Section 179 Expensing (sec. 202)...........    86
          C. Increase Deduction for Business Meals (sec. 203)....    86
          D. Increased Deduction for Business Meals While 
              Operating under Department of Transportation Hours 
              of Service Limitations (sec. 204)..................    88
          E. Provide That Federal Production Payments to Farmers 
              Are Taxable in the Year Received (sec. 205)........    89
          F. Farmer and Fishermen Income Averaging (sec. 206)....    90
          G. Repeal Special Occupational Taxes on Producers and 
              Marketers of Alcoholic Beverage (sec. 207).........    91
     TITLE III. PENSION PROVISIONS...................................92
          A. Expanding Coverage..................................    92
              1. Increase in benefit and contribution limits 
                  (sec. 301).....................................    92
              2. Plans loans for Subchapter S shareholders, 
                  partners, and sole proprietors (sec. 302)......    94
              3. Modification of top-heavy rules (sec. 303)......    96
              4. Elective deferrals not taken into account for 
                  purposes of deduction limits (sec. 304)........   100
              5. Repeal of coordination requirements for deferred 
                  compensation plans of State and local 
                  governments and tax-exempt organizations (sec. 
                  305)...........................................   101
              6. Eliminate IRS user fees for certain requests 
                  regarding employer plans (sec. 306)............   101
              7. Definition of compensation for purposes of 
                  deduction limits (sec. 307)....................   102
              8. Option to treat elective deferrals as after-tax 
                  contributions (sec. 308).......................   104
              9. Reduced PBGC premiums for small and new plans 
                  (secs. 309-310)................................   105
          B. Enhancing Fairness for Women........................   107
              1. Additional salary catch-up contributions (sec. 
                  321)...........................................   107
              2. Equitable treatment for contributions of 
                  employees to defined contribution plans (sec. 
                  322)...........................................   108
              3. Faster vesting of employer matching 
                  contributions (sec. 323).......................   111
              4. Simplify and update the minimum distribution 
                  rules (secs. 324 and 339)......................   112
              5. Clarification of tax treatment of division of 
                  section 457 plan benefits upon divorce (sec. 
                  325)...........................................   114
              6. Modification of safe harbor relief for hardship 
                  withdrawals from 401(k) plans (sec. 326).......   115
          C. Increasing Portability for Participants.............   116
              1. Rollovers of retirement plan and IRA 
                  distributions (secs. 331-333)..................   116
              2. Waiver of 60-day rule (sec. 334)................   120
              3. Treatment of forms of distribution (sec. 335)...   120
              4. Rationalization of restrictions on distributions 
                  (sec. 336).....................................   122
              5. Purchase of service credit under governmental 
                  pension plans (sec. 337).......................   123
              6. Employers may disregard rollovers for purposes 
                  of cash-out rules (sec. 338)...................   124
          D. Strengthening Pension Security and Enforcement......   125
              1. Phase in repeal of 150 percent of current 
                  liability funding limit; deduction for 
                  contributions to fund termination liability 
                  (secs. 341-342)................................   125
              2. Extension of PBGC missing participants program 
                  (sec. 343).....................................   127
              3. Excise tax relief for sound pension funding 
                  (sec. 346).....................................   128
              4. Notice of significant reduction in plan benefit 
                  accruals (sec. 347)............................   129
              5. Modifications to section 415 limits for 
                  multiemployer plans (sec. 348).................   133
          E. Reducing Regulatory Burdens.........................   134
              1. Modification of timing of plan valuations (sec. 
                  361)...........................................   134
              2. ESOP dividends may be reinvested without loss of 
                  dividend deduction (sec. 362)..................   135
              3. Repeal transition rule relating to certain 
                  highly compensated employees (sec. 363)........   135
              4. Employees of tax-exempt entities (sec. 364).....   136
              5. Treatment of employer-provided retirement advice 
                  (sec. 365).....................................   137
              6. Reporting simplification (sec. 366).............   138
              7. Improvement to Employer Plans Compliance 
                  Resolution System (sec. 367)...................   140
              8. Rules for substantial owner benefits in 
                  terminated plans (sec. 368)....................   141
              9. Clarification of exclusion for employer-provided 
                  transit passes (sec. 369)......................   142
              10. Repeal of the multiple use test (sec. 370).....   143
              11. Flexibility in nondiscrimination and line of 
                  business rules (sec. 371)......................   144
              12. Extension to international organization of 
                  moratorium on application of certain 
                  nondiscrimination rules applicable to State and 
                  local government plans (sec. 368)..............   146
              13. Notice and consent period regarding 
                  distributions (sec. 373).......................   146
          F. Provisions Relating to Plan Amendments (sec. 381)...   147
     TITLE IV. EXTENSION OF WORK OPPORTUNITY CREDIT AND WELFARE-TO-WORK 
     CREDIT.........................................................148
          A. Extend the Work Opportunity Tax Credit (sec. 401)...   148
          B. Extend the Welfare-to-Work Tax Credit (sec. 401)....   149
     TITLE V. ESTATE TAX RELIEF.....................................150
          A. Reduction of Estate, Gift, and Generation-Skipping 
              Transfer Taxes (secs. 501-502 and 511).............   150
          B. Modify Generation-Skipping Tax Rules (secs. 521-524)   151
              1. Deemed allocation of the generation-skipping 
                  transfer (``GST'') tax exemption to lifetime 
                  transfers to trusts that are not direct skips 
                  (sec. 521).....................................   151
              2. Retroactive allocation of the GST tax exemption 
                  (sec. 521).....................................   154
              3. Severing of trusts holding property having an 
                  inclusion ratio of greater than zero (sec. 522)   155
              4. Modification of certain valuation rules (sec. 
                  523)...........................................   156
              5. Relief from late elections (sec. 524)...........   157
              6. Substandard compliance (sec. 524)...............   158
          C. Expand Estate Tax Rule for Conservation Easements 
              (sec. 531).........................................   158
     TITLE VI. DISTRESSED COMMUNITIES AND INDUSTRIES PROVISIONS.....160
          A. Renewal Community Provisions (secs. 601-605)........   160
          B. Increase the Maximum Dollar Amount of Reforestation 
              Expenditures Eligible for Amortization and Credit 
              (sec. 611).........................................   167
     TITLE VII. REAL ESTATE PROVISIONS..............................169
          A. Increase Low-Income Housing Tax Credit Cap and Make 
              Other Modifications (secs. 701-707)................   169
          B. Provisions Relating to Real Estate Investment Trusts 
              (REITs) (secs. 711-716, 721, 731, 741, and 751)....   172
          C. Increase in Private Activity Bond State Volume 
              Limits (sec. 761)..................................   179
          D. Exclusion from Gross Income for Certain Forgiven 
              Mortgage Obligations (sec. 771)....................   180
     III. VOTES OF THE COMMITTEE....................................181
     IV. BUDGET EFFECTS OF THE BILL.................................182
          A. Committee Estimates of Budgetary Effects............   182
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures.......................................   187
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................   187
     V. OTHER MATTERS TO BE DISCUSSED UNDER RULES OF THE HOUSE......196
          A. Committee Oversight Findings and Recommendations....   196
          B. Summary of Findings and Recommendations of the 
              Committee on Government Reform.....................   196
          C. Constitutional Authority Statement..................   196
          D. Information Relating to Unfunded Mandates...........   196
          E. Applicability of House Rule XX15(b).................   197
          F. Tax Complexity Analysis.............................   197
     VI. CHANGES IN EXISTING LAW OF THE BILL, AS REPORTED...........199
     VII. MINORITY/DISSENTING VIEWS.................................200

  The amendments (stated in terms of title designation) are as 
follows:
  1.  In the table of sections strike all after title I and 
insert the following:

                   TITLE II--SMALL BUSINESS PROVISIONS

Sec. 201. Deduction for 100 percent of health insurance costs of self-
          employed individuals.
Sec. 202. Increase in expense treatment for small businesses.
Sec. 203. Increased deduction for meal expenses.
Sec. 204. Increased deductibility of business meal expenses for 
          individuals subject to Federal limitations on hours of 
          service.
Sec. 205. Production flexibility contract payments.
Sec. 206. Income averaging for farmers and fishermen not to increase 
          alternative minimum tax liability.
Sec. 207. Repeal of occupational taxes relating to distilled spirits, 
          wine, and beer.

                      TITLE III--PENSION PROVISIONS

                     Subtitle A--Expanding Coverage

Sec. 301. Increase in benefit and contribution limits.
Sec. 302. Plan loans for subchapter S owners, partners, and sole 
          proprietors.
Sec. 303. Modification of top-heavy rules.
Sec. 304. Elective deferrals not taken into account for purposes of 
          deduction limits.
Sec. 305. Repeal of coordination requirements for deferred compensation 
          plans of State and local governments and tax-exempt 
          organizations.
Sec. 306. Elimination of user fee for requests to IRS regarding pension 
          plans.
Sec. 307. Deduction limits.
Sec. 308. Option to treat elective deferrals as after-tax contributions.
Sec. 309. Reduced PBGC premium for new plans of small employers.
Sec. 310. Reduction of additional PBGC premium for new and small plans.

                Subtitle B--Enhancing Fairness for Women

Sec. 321. Catchup contributions for individuals age 50 or over.
Sec. 322. Equitable treatment for contributions of employees to defined 
          contribution plans.
Sec. 323. Faster vesting of certain employer matching contributions.
Sec. 324. Simplify and update the minimum distribution rules.
Sec. 325. Clarification of tax treatment of division of section 457 plan 
          benefits upon divorce.
Sec. 326. Modification of safe harbor relief for hardship withdrawals 
          from cash or deferred arrangements.

           Subtitle C--Increasing Portability for Participants

Sec. 331. Rollovers allowed among various types of plans.
Sec. 332. Rollovers of IRAs into workplace retirement plans.
Sec. 333. Rollovers of after-tax contributions.
Sec. 334. Hardship exception to 60-day rule.
Sec. 335. Treatment of forms of distribution.
Sec. 336. Rationalization of restrictions on distributions.
Sec. 337. Purchase of service credit in governmental defined benefit 
          plans.
Sec. 338. Employers may disregard rollovers for purposes of cash-out 
          amounts.
Sec. 339. Minimum distribution and inclusion requirements for section 
          457 plans.

       Subtitle D--Strengthening Pension Security and Enforcement

Sec. 341. Repeal of 150 percent of current liability funding limit.
Sec. 342. Maximum contribution deduction rules modified and applied to 
          all defined benefit plans.
Sec. 343. Missing participants.
Sec. 344. Periodic pension benefits statements.
Sec. 345. Civil penalties for breach of fiduciary responsibility.
Sec. 346. Excise tax relief for sound pension funding.
Sec. 347. Excise tax on failure to provide notice by defined benefit 
          plans significantly reducing future benefit accruals.
Sec. 348. Protection of investment of employee contributions to 401(k) 
          plans.
Sec. 349. Treatment of multiemployer plans under section 415.
Sec. 350. Technical corrections to Saver Act.
Sec. 351. Model spousal consent language and qualified domestic 
          relations order.
Sec. 352. Elimination of ERISA double jeopardy.

                 Subtitle E--Reducing Regulatory Burdens

Sec. 361. Modification of timing of plan valuations.
Sec. 362. ESOP dividends may be reinvested without loss of dividend 
          deduction.
Sec. 363. Repeal of transition rule relating to certain highly 
          compensated employees.
Sec. 364. Employees of tax-exempt entities.
Sec. 365. Clarification of treatment of employer-provided retirement 
          advice.
Sec. 366. Reporting simplification.
Sec. 367. Improvement of employee plans compliance resolution system.
Sec. 368. Substantial owner benefits in terminated plans.
Sec. 369. Modification of exclusion for employer provided transit 
          passes.
Sec. 370. Repeal of the multiple use test.
Sec. 371. Flexibility in nondiscrimination, coverage, and line of 
          business rules.
Sec. 372. Extension to international organizations of moratorium on 
          application of certain nondiscrimination rules applicable to 
          State and local plans.
Sec. 373. Notice and consent period regarding distributions.
Sec. 374. Annual report dissemination.
Sec. 375. Excess benefit plans.
Sec. 376. Benefit suspension notice.
Sec. 377. Clarification of church welfare plan status under State 
          insurance law.

                       Subtitle F--Plan Amendments

Sec. 381. Provisions relating to plan amendments.

   TITLE IV--EXTENSION OF WORK OPPORTUNITY CREDIT AND WELFARE-TO-WORK 
                                 CREDIT

Sec. 401. Work opportunity credit and welfare-to-work credit.

                       TITLE V--ESTATE TAX RELIEF

           Subtitle A--Reductions of Estate and Gift Tax Rates

Sec. 501. Reductions of estate and gift tax rates.
Sec. 502. Sense of the Congress concerning repeal of the death tax.

    Subtitle B--Unified Credit Replaced With Unified Exemption Amount

Sec. 511. Unified credit against estate and gift taxes replaced with 
          unified exemption amount.

      Subtitle C--Modifications of Generation-skipping Transfer Tax

Sec. 521. Deemed allocation of GST exemption to lifetime transfers to 
          trusts; retroactive allocations.
Sec. 522. Severing of trusts.
Sec. 523. Modification of certain valuation rules.
Sec. 524. Relief provisions.

                   Subtitle D--Conservation Easements

Sec. 531. Expansion of estate tax rule for conservation easements.

     TITLE VI--TAX RELIEF FOR DISTRESSED COMMUNITIES AND INDUSTRIES

           Subtitle A--American Community Renewal Act of 1999

Sec. 601. Short title.
Sec. 602. Designation of and tax incentives for renewal communities.
Sec. 603. Extension of expensing of environmental remediation costs to 
          renewal communities.
Sec. 604. Extension of work opportunity tax credit for renewal 
          communities.
Sec. 605. Conforming and clerical amendments.

                      Subtitle B--Timber Incentives

Sec. 611. Temporary suspension of maximum amount of amortizable 
          reforestation expenditures.

                    TITLE VII--REAL ESTATE PROVISIONS

          Subtitle A--Improvements in Low-Income Housing Credit

Sec. 701. Modification of State ceiling on low-income housing credit.
Sec. 702. Modification of criteria for allocating housing credits among 
          projects.
Sec. 703. Additional responsibilities of housing credit agencies.
Sec. 704. Modifications to rules relating to basis of building which is 
          eligible for credit.
Sec. 705. Other modifications.
Sec. 706. Carryforward rules.
Sec. 707. Effective date.

    Subtitle B--Provisions Relating to Real Estate Investment Trusts

   Part I--Treatment of Income and Services Provided by Taxable REIT 
                              Subsidiaries

Sec. 711. Modifications to asset diversification test.
Sec. 712. Treatment of income and services provided by taxable REIT 
          subsidiaries.
Sec. 713. Taxable REIT subsidiary.
Sec. 714. Limitation on earnings stripping.
Sec. 715. 100 percent tax on improperly allocated amounts.
Sec. 716. Effective date.

                       Part II--Health Care REITs

Sec. 721. Health care REITs.

      Part III--Conformity With Regulated Investment Company Rules

Sec. 731. Conformity with regulated investment company rules.

 Part IV--Clarification of Exception From Impermissible Tenant Service 
                                 Income

Sec. 741. Clarification of exception for independent operators.

           Part V--Modification of Earnings and Profits Rules

Sec. 751. Modification of earnings and profits rules.

              Subtitle C--Private Activity Bond Volume Cap

Sec. 761. Acceleration of phase-in of increase in volume cap on private 
          activity bonds.

 Subtitle D--Exclusion From Gross Income for Certain Forgiven Mortgage 
                               Obligations

Sec. 771. Exclusion from gross income for certain forgiven mortgage 
          obligations.

  2.  Strike all after title I and insert the following:

                  TITLE II--SMALL BUSINESS PROVISIONS

SEC. 201. DEDUCTION FOR 100 PERCENT OF HEALTH INSURANCE COSTS OF SELF-
                    EMPLOYED INDIVIDUALS.

  (a) In General.--Paragraph (1) of section 162(l) is amended to read 
as follows:
          ``(1) Allowance of deduction.--In the case of an individual 
        who is an employee within the meaning of section 401(c)(1), 
        there shall be allowed as a deduction under this section an 
        amount equal to 100 percent of the amount paid during the 
        taxable year for insurance which constitutes medical care for 
        the taxpayer and the taxpayer's spouse and dependents.''.
  (b) Clarification of Limitations on Other Coverage.--The first 
sentence of section 162(l)(2)(B) is amended to read as follows: 
``Paragraph (1) shall not apply to any taxpayer for any calendar month 
for which the taxpayer participates in any subsidized health plan 
maintained by any employer (other than an employer described in section 
401(c)(4)) of the taxpayer or the spouse of the taxpayer.''.
  (c) Effective Date.--The amendments made by this section shall apply 
to taxable years beginning after December 31, 2000.

 SEC. 202. INCREASE IN EXPENSE TREATMENT FOR SMALL BUSINESSES.

  (a) In General.--Paragraph (1) of section 179(b) (relating to dollar 
limitation) is amended to read as follows:
          ``(1) Dollar limitation.--The aggregate cost which may be 
        taken into account under subsection (a) for any taxable year 
        shall not exceed $30,000.''.
  (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2000.

SEC. 203. INCREASED DEDUCTION FOR MEAL EXPENSES.

  (a) In General.--Paragraph (1) of section 274(n) (relating to only 50 
percent of meal and entertainment expenses allowed as deduction) is 
amended by striking ``50 percent'' in the text and inserting ``the 
allowable percentage''.
  (b) Allowable Percentages.--Subsection (n) of section 274 is amended 
by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), 
respectively, and by inserting after paragraph (1) the following new 
paragraph:
          ``(2) Allowable percentage.--For purposes of paragraph (1), 
        the allowable percentage is--
                  ``(A) in the case of amounts for items described in 
                paragraph (1)(B), 50 percent, and
                  ``(B) in the case of expenses for food or beverages, 
                60 percent (55 percent for taxable years beginning 
                during 2001).''
  (c) Conforming Amendment.--The heading for subsection (n) of section 
274 is amended by striking ``50 Percent'' and inserting ``Limited 
Percentages''.
  (d) Effective Date.--The amendments made by this section shall apply 
to taxable years beginning after December 31, 2000.

SEC. 204. INCREASED DEDUCTIBILITY OF BUSINESS MEAL EXPENSES FOR 
                    INDIVIDUALS SUBJECT TO FEDERAL LIMITATIONS ON HOURS 
                    OF SERVICE.

  (a) In General.--Paragraph (4) of section 274(n) (relating to limited 
percentages of meal and entertainment expenses allowed as deduction), 
as redesignated by section 203, is amended to read as follows:
          ``(4) Special rule for individuals subject to federal hours 
        of service.--In the case of any expenses for food or beverages 
        consumed while away from home (within the meaning of section 
        162(a)(2)) by an individual during, or incident to, the period 
        of duty subject to the hours of service limitations of the 
        Department of Transportation, paragraph (2)(B) shall be applied 
        by substituting `80 percent' for the percentage otherwise 
        applicable under paragraph (2)(B).''
  (b) Effective Date.--The amendment made by subsection (a) shall apply 
to taxable years beginning after December 31, 2000.

SEC. 205. PRODUCTION FLEXIBILITY CONTRACT PAYMENTS.

  Any option to accelerate the receipt of any payment under a 
production flexibility contract which is payable under the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7200 et seq.), 
as in effect on the date of the enactment of this Act, shall be 
disregarded in determining the taxable year for which such payment is 
properly includible in gross income for purposes of the Internal 
Revenue Code of 1986.

SEC. 206. INCOME AVERAGING FOR FARMERS AND FISHERMEN NOT TO INCREASE 
                    ALTERNATIVE MINIMUM TAX LIABILITY.

  (a) In General.--Section 55(c) (defining regular tax) is amended by 
redesignating paragraph (2) as paragraph (3) and by inserting after 
paragraph (1) the following:
          ``(2) Coordination with income averaging for farmers and 
        fishermen.--Solely for purposes of this section, section 1301 
        (relating to averaging of farm and fishing income) shall not 
        apply in computing the regular tax.''.
  (b) Allowing Income Averaging for Fishermen.--
          (1) In general.--Section 1301(a) is amended by striking 
        ``farming business'' and inserting ``farming business or 
        fishing business,''.
          (2) Definition of elected farm income.--
                  (A) In general.--Clause (i) of section 1301(b)(1)(A) 
                is amended by inserting ``or fishing business'' before 
                the semicolon.
                  (B) Conforming amendment.--Subparagraph (B) of 
                section 1301(b)(1) is amended by inserting ``or fishing 
                business'' after ``farming business'' both places it 
                occurs.
          (3) Definition of fishing business.--Section 1301(b) is 
        amended by adding at the end the following new paragraph:
          ``(4) Fishing business.--The term `fishing business' means 
        the conduct of commercial fishing as defined in section 3 of 
        the Magnuson-Stevens Fishery Conservation and Management Act 
        (16 U.S.C. 1802).''.
  (c) Effective Date.--The amendments made by this section shall apply 
to taxable years beginning after December 31, 2000.

SEC. 207. REPEAL OF OCCUPATIONAL TAXES RELATING TO DISTILLED SPIRITS, 
                    WINE, AND BEER.

  (a) Repeal of Occupational Taxes.--
          (1) In general.--The following provisions of part II of 
        subchapter A of chapter 51 of the Internal Revenue Code of 1986 
        (relating to occupational taxes) are hereby repealed:
                  (A) Subpart A (relating to proprietors of distilled 
                spirits plants, bonded wine cellars, etc.).
                  (B) Subpart B (relating to brewer).
                  (C) Subpart D (relating to wholesale dealers) (other 
                than sections 5114 and 5116).
                  (D) Subpart E (relating to retail dealers) (other 
                than section 5124).
                  (E) Subpart G (relating to general provisions) (other 
                than sections 5142, 5143, 5145, and 5146).
          (2) Nonbeverage domestic drawback.--Section 5131 is amended 
        by striking ``, on payment of a special tax per annum,''.
          (3) Industrial use of distilled spirits.--Section 5276 is 
        hereby repealed.
  (b) Conforming Amendments.--
          (1)(A) The heading for part II of subchapter A of chapter 51 
        and the table of subparts for such part are amended to read as 
        follows:

                  ``PART II--MISCELLANEOUS PROVISIONS

                              ``Subpart A. Manufacturers of stills.
                              ``Subpart B. Nonbeverage domestic 
                                        drawback claimants.
                              ``Subpart C. Recordkeeping by dealers.
                              ``Subpart D. Other provisions.''

          (B) The table of parts for such subchapter A is amended by 
        striking the item relating to part II and inserting the 
        following new item:

                              ``Part II. Miscellaneous provisions.''

          (2) Subpart C of part II of such subchapter (relating to 
        manufacturers of stills) is redesignated as subpart A.
          (3)(A) Subpart F of such part II (relating to nonbeverage 
        domestic drawback claimants) is redesignated as subpart B and 
        sections 5131 through 5134 are redesignated as sections 5111 
        through 5114, respectively.
          (B) The table of sections for such subpart B, as so 
        redesignated, is amended--
                  (i) by redesignating the items relating to sections 
                5131 through 5134 as relating to sections 5111 through 
                5114, respectively, and
                  (ii) by striking ``and rate of tax'' in the item 
                relating to section 5111, as so redesignated.
          (C) Section 5111, as redesignated by subparagraph (A), is 
        amended--
                  (i) by striking ``and rate