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H.R.2414
Top Ten Terrible Tax Act of 1999 (Introduced in the
House)
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taxes) is repealed effective with respect to estates of decedents dying, and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:
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