HR 2414 IH
106th CONGRESS
1st Session
H. R. 2414
To amend the Internal Revenue Code of 1986 to eliminate certain
particularly unfair tax provisions, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
July 1, 1999
Mr. TANCREDO (for himself, Mr. SCHAFFER, Mr. BURTON of Indiana, and Mr. BARR
of Georgia) introduced the following bill; which was referred to the Committee
on Ways and Means, and in addition to the Committee on Commerce, for a period to
be subsequently determined by the Speaker, in each case for consideration of
such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to eliminate certain
particularly unfair tax provisions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) SHORT TITLE- This Act may be cited as the `Top Ten Terrible Tax Act of
1999'.
(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.
Sec. 2. Repeal over 10 years of estate and gift taxes.
Sec. 3. Repeal of universal service charge.
Sec. 4. Repeal of excise tax on telephone and other communications
services.
Sec. 5. Repeal of marriage penalty in individual income tax rates and
standard deduction.
Sec. 6. Repeal over 10 years of capital gains tax on individuals.
Sec. 7. Repeal of excise tax on vaccines.
Sec. 8. Repeal of excise tax on sport fishing equipment.
Sec. 9. Repeal of 1993 income tax increase on social security
benefits.
Sec. 10. Repeal of double taxation on interest and dividends.
Sec. 11. Repeal of 1993 increases in motor fuel taxes.
SEC. 2. REPEAL OVER 10 YEARS OF ESTATE AND GIFT TAXES.
(a) REPEAL OF ESTATE AND GIFT TAXES- Subtitle B (relating to estate and
gift taxes) is repealed effective with respect to estates of decedents dying,
and gifts made, after December 31, 2009.
(b) PHASEOUT OF TAX- Subsection (c) of section 2001 (relating to
imposition and rate of tax) is amended by adding at the end the following new
paragraph:
`(3) PHASEOUT OF TAX- In the case of estates of decedents dying, and
gifts made, during any calendar year after 1999 and before 2010--
`(A) IN GENERAL- The tentative tax under this subsection shall be
determined by using a table prescribed by the Secretary (in lieu of using
the table contained in paragraph (1)) which is the same as such table;
except that--
`(i) each of the rates of tax shall be reduced (but not below zero)
by the number of percentage points determined under subparagraph (B),
and
`(ii) the amounts setting forth the tax shall be adjusted to the
extent necessary to reflect the adjustments under clause
(i).
`(B) PERCENTAGE POINTS OF REDUCTION-
The number of
`For calendar year:
percentage points is:
2000
5
2001
10
2002
15
2003
20
2004
25
2005
30
2006
35
2007
40
2008
45
2009
50.
`(C) COORDINATION WITH PARAGRAPH (2)- Paragraph (2) shall be applied
by reducing the 55 percent percentage contained therein by the number of
percentage points determined for such calendar year under subparagraph
(B).
`(D) COORDINATION WITH CREDIT FOR STATE DEATH TAXES- Rules similar to
the rules of subparagraph (A) shall apply to the table contained in
section 2011(b) except that the number of percentage points referred to in
subparagraph (A)(i) shall be determined under the following
table:
The number of
`For calendar year:
percentage points is:
2000
1 1/2
2001
3
2002
4 1/2
2003
6
2004
7 1/2
2005
9
2006
10 1/2
2007
12
2008
13 1/2
2009
15.'
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
estates of decedents dying, and gifts made, after December 31, 1999.
SEC. 3. REPEAL OF UNIVERSAL SERVICE CHARGE.
(a) IN GENERAL- Section 254(h) of the Communications Act of 1934 (47
U.S.C. 254(h)) is amended--
(1) in paragraph (1), by striking subparagraph (B);
(A) in subparagraph (A)--
(i) by striking `elementary and secondary school classrooms,';
and
(ii) by striking `, and libraries'; and
(B) in subparagraph (B), by striking `public institutional
telecommunications users' and inserting `health care providers';
(3) in paragraph (3), by striking `public institutional
telecommunications user' and inserting `health care provider';
(4) in paragraph (4), by striking `, is a school' and all that follows
through `Act'; and
(A) by striking subparagraphs (A) and (C); and
(B) by redesignating subparagraph (B) as subparagraph (A).
(b) UNIVERSAL SERVICE PRINCIPLES- Section 254(b)(6) of the Communications
Act of 1934 (47 U.S.C. 254(b)(6)) is amended--
(1) in the paragraph heading, by striking `SCHOOLS, HEALTH CARE, AND
LIBRARIES' and inserting `HEALTH CARE'; and
(2) by striking `Elementary and secondary schools and classrooms, health
care providers, and libraries' and inserting `Health care providers'.
(c) SPECIAL SERVICES- Section 254(c)(3) of the Communications Act of 1934
(47 U.S.C. 254(c)(3)) is amended by striking `schools, libraries, and'.
SEC. 4. REPEAL OF EXCISE TAX ON TELEPHONE AND OTHER COMMUNICATIONS
SERVICES.
(a) IN GENERAL- Chapter 33 (relating to facilities and services) is
amended by striking subchapter B.
(b) CONFORMING AMENDMENTS-
(1) Section 4293 is amended by striking `chapter 32 (other than the
taxes imposed by sections 4064 and 4121) and subchapter B of chapter 33,'
and inserting `and chapter 32 (other than the taxes imposed by sections 4064
and 4121),'.
(2)(A) Paragraph (1) of section 6302(e) is amended by striking `section
4251 or'.
(B) Paragraph (2) of section 6302(e) is amended--
(i) by striking `imposed by--' and all that follows through `with
respect to' and inserting `imposed by section 4261 or 4271 with respect
to', and
(ii) by striking `bills rendered or'.
(C) The subsection heading for section 6302(e) is amended by striking
`COMMUNICATIONS SERVICES AND'.
(3) Section 6415 is amended by striking `4251, 4261, or 4271' each place
it appears and inserting `4261 or 4271'.
(4) Paragraph (2) of section 7871(a) is amended by inserting `or' at the
end of subparagraph (B), by striking subparagraph (C), and by redesignating
subparagraph (D) as subparagraph (C).
(5) The table of subchapters for chapter 33 is amended by striking the
item relating to subchapter B.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
amounts paid pursuant to bills first rendered more than 90 days after the date
of the enactment of this Act.
SEC. 5. REPEAL OF MARRIAGE PENALTY IN INDIVIDUAL INCOME TAX RATES AND
STANDARD DEDUCTION.
(a) RATES- Section 1 (relating to tax imposed) is amended by striking
subsections (a) through (e) and inserting the following:
`(a) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES- There
is hereby imposed on the taxable income of--
`(1) every married individual (as defined in section 7703) who makes a
single return jointly with his spouse under section 6013, and
`(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table:
`If taxable income is:
The tax is:
Not over $51,500
15% of taxable income.
Over $51,500 but not over $124,900
$7,725, plus 28% of the excess over $51,500.
Over $124,900 but not over $260,500
$28,277, plus 31% of the excess over $124,900.
Over $260,500 but not over $566,300
$70,313, plus 36% of the excess over $260,500.
Over $566,300................
$180,401, plus 39.6% of the excess over $566,300.
`(b) HEADS OF HOUSEHOLDS- There is hereby imposed on the taxable income of
every head of a household (as defined in section 2(b)) a tax determined in
accordance with the following table:
`If taxable income is:
The tax is:
Not over $34,550
15% of taxable income.
Over $34,550 but not over $89,150
$5,182.50, plus 28% of the excess over $34,550.
Over $89,150 but not over $144,400
$20,470.50, plus 31% of the excess over $89,150.
Over $144,400 but not over $283,150
$37,598, plus 36% of the excess over $144,400.
Over $283,150
$87,548, plus 39.6% of the excess over $283,150.
`(c) OTHER INDIVIDUALS- There is hereby imposed on the taxable income of
every individual (other than an individual to whom subsection (a) or (b)
applies) a tax determined in accordance with the following table:
`If taxable income is:
The tax is:
Not over $25,750
15% of taxable income.
Over $25,750 but not over $62,450
$3,862.50, plus 28% of the excess over $25,750.
Over $62,450 but not over $130,250
$14,138.50, plus 31% of the excess over $62,450.
Over $130,250 but not over $283,150
$35,156.50, plus 36% of the excess over $130,250.
Over $283,150
$90,200.50, plus 39.6% of the excess over $283,150.
`(d) ESTATES AND TRUSTS- There is hereby imposed on the taxable income
of--
taxable under this subsection a tax determined in accordance with the
following table:
`If taxable income is:
The tax is:
Not over $1,750
15% of taxable income.
Over $1,750 but not over $4,050
$262.50, plus 28% of the excess over $1,750.
Over $4,050 but not over $6,200
$906.50, plus 31% of the excess over $4,050.
Over $6,200 but not over $8,450
$1,573, plus 36% of the excess over $6,200.
Over $8,450
$2,383, plus 39.6% of the excess over $8,450.'.
(1) IN GENERAL- Paragraph (2) of section 63(c) (relating to standard
deduction) is amended to read as follows:
`(2) BASIC STANDARD DEDUCTION- For purposes of paragraph (1), the basic
standard deduction is--
`(A) $8,600 in the case of--
`(ii) a surviving spouse (as defined in section 2(a)),
`(B) $6,350 in the case of a head of household (as defined in section
2(b)), or
`(C) $4,300 in any other case.'
(2) TECHNICAL AMENDMENTS-
(A) Paragraph (4) of section 63(c) is amended to read as
follows:
`(4) ADJUSTMENTS FOR INFLATION- In the case of any taxable year
beginning in a calendar year after 1999, each dollar amount contained in
paragraph (2) or (5) or subsection (f) shall be increased by an amount equal
to--
`(A) such dollar amount, multiplied by
`(B) the cost-of-living adjustment determined under section 1(f)(3)
for the calendar year in which the taxable year begins.'
(B) Subparagraph (A) of section 63(c)(5) is amended by striking `$500'
and inserting `$700'.
(C) Subsection (f) of section 63 is amended by striking `$600' each
place it appears and inserting `$850' and by striking `$750' in paragraph
(3) and inserting `$1,050'.
(D) Subparagraph (B) of section 1(f)(6) is amended by striking
`subsection (c)(4) of section 63 (as it applies to subsections (c)(5)(A)
and (f) of such section)' and inserting `section 63(c)(4)'.
(c) CONFORMING AMENDMENTS RELATED TO INFLATION ADJUSTMENT OF INCOME TAX
BRACKETS-
(1) Subsection (f) of section 1 is amended--
(A) by striking `1993' in paragraph (1) and inserting `1999',
(B) by striking `1992' in paragraph (3)(B) and inserting `1998',
and
(C) by striking paragraph (7).
(2) The following provisions are each amended by striking `1992' and
inserting `1998' each place it appears:
(G) Section 135(b)(2)(B)(ii).
(J) Section 221(g)(1)(B).
(K) Section 512(d)(2)(B).
(L) Section 513(h)(2)(C)(ii).
(M) Section 685(c)(3)(B).
(O) Section 911(b)(2)(D)(ii)(II).
(P) Section 2032A(a)(3)(B).
(Q) Section 2503(b)(2)(B).
(R) Section 2631(c)(1)(B).
(S) Section 4001(e)(1)(B).
(T) Section 4261(e)(4)(A)(ii).
(V) Section 6323(i)(4)(B).
(W) Section 6601(j)(3)(B).
(3) Subclause (II) of section 42(h)(6)(G)(i) is amended by striking
`1987' and inserting `1998'.
(4) Subparagraph (B) of section 132(f)(6) is amended by inserting before
the period `, determined by substituting `calendar year 1992' for `calendar
year 1998' in subparagraph (B) thereof'.
(5) Sections 468B(b)(1), 511(b)(1), 641(a), 641(d)(2)(A), and 685(d) are
each amended by striking `section 1(e)' each place it appears and inserting
`section 1(d)'.
(6) Sections 1(f)(2) and 904(b)(3)(E)(ii) are each amended by striking
`(d), or (e)' and inserting `or (d)'.
(7) Paragraph (1) of section 1(f) is amended by striking `(d), and (e)'
and inserting `and (d)'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 1999.
(e) SECTION 15 NOT TO APPLY- No amendment made by this section shall be
treated as a change in a rate of tax for purposes of section 15 of the
Internal Revenue Code of 1986.
SEC. 6. REPEAL OVER 10 YEARS OF CAPITAL GAINS TAX ON INDIVIDUALS.
(a) IN GENERAL- Part I of subchapter P of chapter 1 (relating to treatment
of capital gains) is amended by adding at the end the following new
section:
`SEC. 1203. EXCLUSION OF CERTAIN AMOUNTS OF NET CAPITAL GAIN OF
INDIVIDUALS.
`(a) GENERAL RULE- In the case of an individual, gross income shall not
include an amount equal to the applicable percentage of the net capital gain
of the taxpayer for the taxable year.
`(b) APPLICABLE PERCENTAGE- For purposes of subsection (a), the term
`applicable percentage' means the percentage determined under the following
table:
`For taxable years beginning
in calendar year--
The applicable percentage is--
2000
10
2001
20
2002
30
2003
40
2004
50
2005
60
2006
70
2007
80
2009
90
2010 and thereafter
100.'
(b) CONFORMING AMENDMENTS-
(1) Section 1222 is amended by adding at the end the following new
sentence:
`Determinations under this section shall be made before the application of
section 1203.'
(2) The table of sections for part I of subchapter P of chapter 1 is
amended by adding at the end the following new item:
`Sec. 1203. Exclusion of certain amounts of net capital gain of individuals.'
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 1999.
SEC. 7. REPEAL OF EXCISE TAX ON VACCINES.
(a) IN GENERAL- Subchapter C of chapter 32 (relating to certain vaccines)
is hereby repealed.
(b) CONFORMING AMENDMENTS-
(1) Subsection (a) of section 4121 is amended by striking `In the case
of the tax imposed by section 4131, paragraphs (3), (4), and (5) shall not
apply and paragraph (2) shall apply only if the use of the exported vaccine
meets such requirements as the Secretary may by regulations
prescribe.'.
(2) Paragraph (2) of section 6416(b) is amended by striking the last
sentence.
(3) The table of subchapters for chapter 32 is amended by striking the
item relating to subchapter C.
(c) EFFECTIVE DATE- The amendments made by this section shall take effect
on January 1, 2000.
SEC. 8. REPEAL OF EXCISE TAX ON SPORT FISHING EQUIPMENT.
(a) IN GENERAL- Subchapter D of chapter 32 (relating to recreational
equipment) is amended to read as follows:
`Subchapter D--Bows and Arrows
`Sec. 4161. Imposition of tax.
`SEC. 4161. IMPOSITION OF TAX.
`(1) IN GENERAL- There is hereby imposed on the sale by the
manufacturer, producer, or importer of any bow which has a draw weight of 10
pounds or more, a tax equal to 11 percent of the price for which so
sold.
`(2) PARTS AND ACCESSORIES- There is hereby imposed upon the sale by the
manufacturer, producer, or importer--
`(A) of any part of accessory suitable for inclusion in or attachment
to a bow described in paragraph (1), and
`(B) of any quiver suitable for use with arrows described in
subsection (b), a tax equivalent to 11 percent of the price for which so
sold.
`(b) ARROWS- There is hereby imposed on the sale by the manufacturer,
producer, or importer of any shaft, point, nock, or vane of a type used in the
manufacture of any arrow which after its assembly--
`(1) measures 18 inches overall or more in length, or
`(2) measures less than 18 inches overall in length but is suitable for
use with a bow described in subsection (a)(1), a tax equal to 12.4 percent
of the price for which so sold.
`(c) TREATMENT OF CERTAIN RESALES-
`(A) the manufacturer, producer, or importer sells any article taxable
under section 4161(a) to any person,
`(B) the constructive sale price rules of section 4216(b) do not apply
to such sale, and
`(C) such person (or any other person) sells such article to a related
person with respect to the manufacturer, producer, or importer,
then such related person shall be liable for tax under section 4161 in
the same manner as if such related person were the manufacturer of the
article.
`(2) CREDIT FOR TAX PREVIOUSLY PAID- If--
`(A) tax is imposed on the sale of any article by reason of paragraph
(1), and
`(B) the related person establishes the amount of the tax which was
paid on the sale described in paragraph (1)(A), the amount of the tax so
paid shall be allowed as a credit against the tax imposed by reason of
paragraph (1).
`(3) RELATED PERSON- For purposes of this subsection, the term `related
person' has the meaning given such term by section 465(b)(3)(C).
`(4) REGULATIONS- Except to the extent provided in regulations, rules
similar to the rules of this subsection shall also apply in cases (not
described in paragraph (1)) in which intermediaries or other devices are
used for purposes of reducing the amount of the tax imposed by section
4161(a).'
(b) CLERICAL AMENDMENT- The item relating to subchapter D in the table of
subchapters for chapter 32 is amended to read as follows:
`Subchapter D. Bows and arrows.'
(c) EFFECTIVE DATE- The amendments made by this section shall take effect
on January 1, 2000.
SEC. 9. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL SECURITY BENEFITS.
(a) IN GENERAL- Paragraph (2) of section 86(a) (relating to social
security and tier 1 railroad retirement benefits) is amended by adding at the
end the following new sentence:
`This paragraph shall not apply to any taxable year beginning after
December 31, 1999.'
(b) CONFORMING AMENDMENTS-
(1) Paragraph (3) of section 871(a) is amended by striking `85 percent'
in subparagraph (A) and inserting `50 percent'.
(2)(A) Subparagraph (A) of section 121(e)(1) of the Social Security
Amendments of 1983 (Public Law 98-21) is amended--
(i) by striking `(A) There' and inserting `There';
(ii) by striking `(i)' immediately following `amounts equivalent to';
and
(iii) by striking `, less (ii)' and all that follows and inserting a
period.
(B) Paragraph (1) of section 121(e) of such Act is amended by striking
subparagraph (B).
(C) Paragraph (3) of section 121(e) of such Act is amended by striking
subparagraph (B) and by redesignating subparagraph (C) as subparagraph
(B).
(D) Paragraph (2) of section 121(e) of such Act is amended in the first
sentence by striking `paragraph (1)(A)' and inserting `paragraph (1)'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 1999.
SEC. 10. REPEAL OF DOUBLE TAXATION ON INTEREST AND DIVIDENDS.
(a) IN GENERAL- Part III of subchapter B of chapter 1 (relating to amounts
specifically excluded from gross income) is amended by inserting after section
115 the following new section:
`SEC. 116. EXCLUSION OF DIVIDENDS AND INTEREST RECEIVED BY INDIVIDUALS.
`(a) EXCLUSION FROM GROSS INCOME- Gross income does not include dividends
and interest received during the taxable year by an individual.
`(b) CERTAIN DIVIDENDS EXCLUDED- Subsection (a) shall not apply to any
dividend from a corporation which, for the taxable year of the corporation in
which the distribution is made, or for the next preceding taxable year of the
corporation, is a corporation exempt from tax under section 501 (relating to
certain charitable, etc., organization) or section 521 (relating to farmers'
cooperative associations).
`(c) SPECIAL RULES- For purposes of this section--
`(1) EXCLUSION NOT TO APPLY TO CAPITAL GAIN DIVIDENDS FROM REGULATED
INVESTMENT COMPANIES AND REAL ESTATE INVESTMENT TRUSTS-
`For treatment of capital gain dividends, see sections 854(a) and
857(c).
`(2) CERTAIN NONRESIDENT ALIENS INELIGIBLE FOR EXCLUSION- In the case of
a nonresident alien individual, subsection (a) shall apply only--
`(A) in determining the tax imposed for the taxable year pursuant to
section 871(b)(1) and only in respect of dividends and interest which are
effectively connected with the conduct of a trade or business within the
United States, or
`(B) in determining the tax imposed for the taxable year pursuant to
section 877(b).
`(3) DIVIDENDS FROM EMPLOYEE STOCK OWNERSHIP PLANS- Subsection (a) shall
not apply to any dividend described in section 404(k).'.
(b) CONFORMING AMENDMENTS-
(1)(A) Subparagraph (A) of section 135(c)(4) is amended by inserting
`116,' before `137'.
(B) Subsection (d) of section 135 is amended by redesignating paragraph
(4) as paragraph (5) and by inserting after paragraph (3) the following new
paragraph:
`(4) COORDINATION WITH SECTION 116- This section shall be applied before
section 116.'.
(2) Paragraph (2) of section 265(a) is amended by inserting before the
period `, or to purchase or carry obligations or shares, or to make
deposits, to the extent the interest thereon is excludable from gross income
under section 116'.
(3) Subsection (c) of section 584 is amended by adding at the end
thereof the following new flush sentence:
`The proportionate share of each participant in the amount of dividends or
interest received by the common trust fund and to which section 116 applies
shall be considered for purposes of such section as having been received by
such participant.'.
(4) Subsection (a) of section 643 is amended by redesignating paragraph
(7) as paragraph (8) and by inserting after paragraph (6) the following new
paragraph:
`(7) DIVIDENDS OR INTEREST- There shall be included the amount of any
dividends or interest excluded from gross income pursuant to section
116.'.
(5) Section 854(a) is amended by inserting `section 116 (relating to
exclusion of dividends and interest received by individuals) and' after `For
purposes of'.
(6) Section 857(c) is amended to read as follows:
`(c) RESTRICTIONS APPLICABLE TO DIVIDENDS RECEIVED FROM REAL ESTATE
INVESTMENT TRUSTS-
`(1) TREATMENT FOR SECTION 116- For purposes of section 116 (relating to
exclusion of dividends and interest received by individuals), a capital gain
dividend (as defined in subsection (b)(3)(C)) received from a real estate
investment trust which meets the requirements of this part shall not be
considered as a dividend.
`(2) TREATMENT FOR SECTION 243- For purposes of section 243 (relating to
deductions for dividends received by corporations), a dividend received from
a real estate investment trust which meets the requirements of this part
shall not be considered as a dividend.'.
(7) The table of sections for part III of subchapter B of chapter 1 is
amended by inserting after the item relating to section 115 the following
new item:
`Sec. 116. Exclusion of dividends and interest received by individuals.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 1999.
SEC. 11. REPEAL OF 1993 INCREASES IN MOTOR FUEL TAXES.
(a) HIGHWAY GASOLINE- Clause (i) of section 4081(a)(2)(A) is amended by
striking `18.3 cents' and inserting `14 cents'.
(b) AVIATION GASOLINE- Clause (ii) of section 4081(a)(2)(A) is amended by
striking `19.3 cents' and inserting `15 cents'.
(c) DIESEL FUEL AND KEROSENE- Clause (iii) of section 4081(a)(2)(A) is
amended by striking `24.3 cents' and inserting `20 cents'.
(d) AVIATION FUEL- Paragraph (1) of section 4091(b) is amended by striking
`21.8 cents' and inserting `17.5 cents'.
(e) FUEL USED ON INLAND WATERWAYS-
(1) Paragraph (1) of section 4042(b) is amended by adding `and' at the
end of subparagraph (A), by striking `, and' at the end of subparagraph (B)
and inserting a period, and by striking subparagraph (C).
(2) Paragraph (2) of section 4042(b) is amended by striking subparagraph
(C).
(f) TECHNICAL AMENDMENTS-
(1) Clause (ii) of section 4041(a)(1)(C) is amended by striking
subclauses (I), (II), and (III) and inserting the following new
subclauses:
`(I) 4.3 cents per gallon before the date of the enactment of the
Top Ten Terrible Tax Act of 1999 and before January 1, 2000,
and
`(II) zero after Decenber 31, 1999.'
(2) Subclause (I) of section 4041(a)(1)(C)(iii) is amended by striking
`7.3 cents' and inserting `3 cents' and by striking `4.3 cents per gallon'
and inserting `zero'.
(3) Subsection (a) of section 4041 is amended by striking paragraph
(3).
(4) Paragraph (3) of section 4041(c) is amended to read as
follows:
`(3) TERMINATION- The rate of the taxes imposed by paragraph (1) shall
be zero after September 30, 2007.'
(5) Clauses (i) and (ii) of section 4041(m)(1)(A) are amended to read as
follows:
`(i) 7 cents per gallon on and after the date of the enactment of
the Top Ten Terrible Tax Act of 1999 and before October 1, 2005,
and
`(ii) zero after September 30, 2005, and'.
(6) Subsection (c) of section 4081 is amended by striking paragraph (6)
and by redesignating paragraphs (7) and (8) as paragraphs (6) and (7),
respectively.
(7) Paragraphs (1) and (2) of section 4081(d) are amended to read as
follows:
`(1) IN GENERAL- The rates of tax specified in clauses (i) and (iii) of
subsection (a)(2)(A) shall be zero after September 30, 2005.
`(2) AVIATION GASOLINE- The rate of tax specified in subsection
(a)(2)(A)(ii) shall be zero after September 30, 2007.
(8) Subparagraph (A) of section 4091(b)(3) is amended to read as
follows:
`(A) The rate of tax specified in paragraph (1) shall be zero after
September 30, 2007.'
(9) Subsection (c) of section 4091 is amended--
(A) by striking `13.4 cents' each place it appears in paragraph (1)
and inserting `9.1 cents',
(B) by striking `14 cents' in paragraph (1) and inserting `9.7
cents',
(C) by striking paragraph (4), and
(D) by redesignating paragraph (5) as paragraph (4).
(10) Subsection (b) of section 4092 is amended by striking `attributable
to' and all that follows through `section 4041(c)(4)).' and inserting
`attributable to the Leaking Underground Storage Tank Trust Fund financing
rate imposed by such section. For purposes of the preceding sentence, the
term `commercial aviation' means any use of an aircraft other than in
noncommercial aviation (as defined in section 4041(c)(4)).'
(11) Subparagraph (B) of section 6421(f)(2) is amended by striking
`and,' and all that follows to the period.
(12) Subsection (f) of section 6421 is hereby repealed.
(13) Subparagraph (A) of section 6427(b)(2) is amended by striking `7.4
cents' and inserting `3.1 cents'.
(14) Paragraph (3) of section 6427(l) is amended to read as
follows:
`(3) REFUND OF CERTAIN TAXES ON FUEL USED IN DIESEL-POWERED TRAINS- For
purposes of this subsection, the term `nontaxable use' includes fuel used in
a diesel-powered train.'
(15) Paragraph (4) of section 6427(l) is amended by striking
`attributable to' and all that follows through the period and inserting
`attributable to the Leaking Underground Storage Tank Trust Fund financing
rate imposed by such section.'
(16) Paragraph (2) of section 9502(f) is amended by striking `is the
excess of' and all that follows and inserting `is the rate of tax determined
under such section.'
(g) EFFECTIVE DATE- The amendments made by this section shall take effect
on January 1, 2000.
(A) before January 1, 2000, tax has been imposed under section 4081 or
4091 of the Internal Revenue Code of 1986 on any liquid, and
(B) on such date such liquid is held by a dealer and has not been used
and is intended for sale,
there shall be credited or refunded (without interest) to the person who
paid such tax (hereafter in this subsection referred to as the `taxpayer')
an amount equal to the excess of the tax paid by the taxpayer over the
amount of such tax which would be imposed on such liquid had the taxable
event occurred on such date.
(2) TIME FOR FILING CLAIMS- No credit or refund shall be allowed or made
under this subsection unless--
(A) claim therefor is filed with the Secretary of the Treasury before
July 1, 2000, based on a request submitted to the taxpayer before April 1,
2000, by the dealer who held the liquid on such date of enactment,
and
(B) the taxpayer has repaid or agreed to repay the amount so claimed
to such dealer or has obtained the written consent of such dealer to the
allowance of the credit or the making of the refund.
(3) EXCEPTION FOR FUEL HELD IN RETAIL STOCKS- No credit or refund shall
be allowed under this subsection with respect to any liquid in retail stocks
held at the place where intended to be sold at retail.
(4) DEFINITIONS- For purposes of this subsection, the terms `dealer' and
`held by a dealer' have the respective meanings given to such terms by
section 6412 of such Code.
(5) CERTAIN RULES TO APPLY- Rules similar to the rules of subsections
(b) and (c) of section 6412 of such Code shall apply for purposes of this
subsection.
END