HRES 256 EH

Resolved, That upon adoption of this resolution it shall be in order without intervention of any point of order to consider in the House the bill (H.R. 2488) to amend the Internal Revenue Code of 1986 to reduce individual income tax rates, to provide marriage penalty relief, to reduce taxes on savings and investments, to provide estate and gift tax relief, to provide incentives for education savings and health care, and for other purposes. The bill shall be considered as read for amendment. The amendment recommended by the Committee on Ways and Means now printed in the bill, modified by the amendments printed in section 3 of this resolution, shall be considered as adopted. The previous question shall be considered as ordered on the bill, as amended, and on any further amendment thereto to final passage without intervening motion except: (1) two hours of debate on the bill, as amended, equally divided and controlled by the chairman and ranking minority member of the Committee on Ways and Means; (2) the further amendment in the nature of a substitute printed in part B of House Report 106-246, if offered by Representative Rangel of New York or his designee, which shall be in order without intervention of any point of order, shall be considered as read, and shall be separately debatable for one hour equally divided and controlled by the proponent and an opponent; and (3) one motion to recommit with or without instructions.

SEC. 2. During consideration of H.R. 2488, notwithstanding the operation of the previous question, the Chairman of the Committee of the Whole may postpone further consideration of the bill until the following legislative day, when consideration shall resume at a time designated by the Speaker.

SEC. 3. The amendments specified in section 1 of this resolution are as follows:

Page 10, strike the table after line 18 and insert the following:

`For taxable years beginning

--The applicable

in calendar year--

--percentage is--

2001 through 2003

--1.0

2004

--2.5

2005 through 2007

--5.0

2008

--7.5

2009 and thereafter

--10.0.

In the case of taxable years beginning in calendar year 2001, the rounding referred to in the preceding sentence shall be to the next highest tenth.

`(9) POST-2001 RATE REDUCTIONS CONTINGENT ON NO INCREASE IN INTEREST ON TOTAL UNITED STATES DEBT-

`(A) IN GENERAL- In the case of taxable years beginning after December 31, 2001, paragraph (8) shall apply only to taxable years beginning after the first debt reduction calendar year.

`(B) DELAY OF FURTHER RATE REDUCTIONS IF INCREASE IN INTEREST ON TOTAL UNITED STATES DEBT- For each calendar year after 2000 which is not a debt reduction calendar year, the table in paragraph (8) shall be applied for each subsequent calendar year by substituting the calendar year which is 1 year later. The preceding sentence shall cease to apply after the earliest calendar year with respect to which the applicable percentage under paragraph (8) is 10 percent (after the application of the preceding sentence).

`(C) DEBT REDUCTION CALENDAR YEAR- For purposes of this paragraph, the term `debt reduction calendar year' means any calendar year after 2000 if, for the 12-month period ending on July 31 of such calendar year, the interest expense on the total United States debt is not greater than such interest expense for the 12-month period ending on July 31 of the preceding calendar year.

`(D) TOTAL UNITED STATES DEBT- For purposes of this paragraph, the term `total United States debt' means obligations which are subject to the public debt limit in section 3101 of title 31, United States Code.'.

Page 16, line 24, strike `2007' and insert `2008'.

Page 17, line 7, strike `2002' and insert `2004'.

Page 17, line 8, strike `2008' and insert `2009'.

Page 17, strike the table after line 13 and insert the following new table:

`For taxable years beginning

--The applicable

in calendar year--

--percentage is--

2005

--80

2006

--70

2007

--60

2008

--50.'.

Page 18, lines 18 and 19, strike `2007' and insert `2008'.

Page 20, strike lines 1 through 6 and insert the following:

`(A) in the case of any taxable year beginning in 2001 or 2002, $50 ($100 in the case of a joint return);

`(B) in the case of any taxable year beginning in 2003 or 2004, $100 ($200 in the case of a joint return); and

`(C) in the case of any taxable year beginning after 2004, $200 ($400 in the case of a joint return).

Page 38, strike line 24 and all that follows through page 40, line 17, and insert the following:

`(2) a tax of 30 percent of the net capital gain (or, if less, taxable income).

`(b) CROSS REFERENCES- For computation of the alternative tax--

`(1) in the case of life insurance companies, see section 801(a)(2);

`(2) in the case of regulated investment companies and their shareholders, see section 852(b)(3)(A) and (D); and

`(3) in the case of real estate investment trusts, see section 857(b)(3)(A).'.

(b) TECHNICAL AMENDMENTS-

(1) Paragraphs (1) and (2) of section 1445(e) are each amended by striking `35 percent' and inserting `30 percent'.

(2)(A) The second sentence of section 7518(g)(6)(A) is amended by striking `34 percent' and inserting `30 percent'.

(B) The second sentence of section 607(h)(6)(A) of the Merchant Marine Act, 1936, is amended by striking `34 percent' and inserting `30 percent'.

(c) 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, 2004.

(2) WITHHOLDING- The amendment made by subsection (b)(1) shall apply to amounts paid after December 31, 2004.

Page 41, strike line 16 and all that follows through the end of the page and insert the following:

`(2) CORPORATIONS FOR TAXABLE YEARS BEGINNING AFTER 2004- In the case of a corporation for any taxable year beginning after 2004 and before 2009, the limitation under paragraph (1) shall be increased by the applicable percentage (determined in accordance with the following table) of the tentative minimum tax for the taxable year.

`For taxable years beginning

--The applicable

in calendar year--

--percentage is--

2005

--20

2006

--30

2007

--40

2008

--50.

Page 42, line 17, strike `2002' and insert `2004'.

Page 42, line 24, strike `2007' and insert `2008'.

Page 85, strike line 20 and all that follows through page 88, line 7, and insert the following new section:

SEC. 611. ADDITIONAL REDUCTIONS OF ESTATE AND GIFT TAX RATES.

(a) MAXIMUM RATE OF TAX REDUCED TO 50 PERCENT-

(1) IN GENERAL- The table contained in section 2001(c)(1) is amended by striking the 2 highest brackets and inserting the following:

`Over $2,500,000

$1,025,800, plus 50% of the excess over $2,500,000.'.

(2) PHASE-IN OF REDUCED RATE- Subsection (c) of section 2001 is amended by adding at the end the following new paragraph:

`(3) PHASE-IN OF REDUCED RATE- In the case of decedents dying, and gifts made, during 2001, the last item in the table contained in paragraph (1) shall be applied by substituting `53%' for `50%'.'.

(b) REPEAL OF PHASEOUT OF GRADUATED RATES- Subsection (c) of section 2001 is amended by striking paragraph (2) and redesignating paragraph (3), as added by subsection (a), as paragraph (2).

(c) ADDITIONAL REDUCTIONS OF RATES OF TAX- Subsection (c) of section 2001, as so amended, is amended by adding at the end the following new paragraph:

`(3) PHASEDOWN OF TAX- In the case of estates of decedents dying, and gifts made, during any calendar year after 2004 and before 2009--

`(A) IN GENERAL- Except as provided in subparagraph (C), 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 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:

2003

--1.0

2004

--2.0

2005

--3.0

2006

--4.0

2007

--5.5

2008

--7.5.

`(C) COORDINATION WITH INCOME TAX RATES- The reductions under subparagraph (A)--

`(i) shall not reduce any rate under paragraph (1) below the lowest rate in section 1(c); and

`(ii) shall not reduce the highest rate under paragraph (1) below the highest rate in section 1(c).

`(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 Secretary shall prescribe percentage point reductions which maintain the proportionate relationship (as in effect before any reduction under this paragraph) between the credit under section 2011 and the tax rates under subsection (c).'.

(d) EFFECTIVE DATES-

(1) SUBSECTIONS (a) AND (b)- The amendments made by subsections (a) and (b) shall apply to estates of decedents dying, and gifts made, after December 31, 2000.

(2) SUBSECTION (c)- The amendment made by subsection (c) shall apply to estates of decedents dying, and gifts made, after December 31, 2004.

Page 278, strike line 1 and all that follows through page 282, line 6.

Page 334, strike line 6 and all that follows through page 336, line 13.

Page 345, strike line 10 and all that follows through page 349, line 15.

Page 358, after line 2, insert the following new section:

SEC. 1264. TREATMENT OF MULTIEMPLOYER PLANS UNDER SECTION 415.

(a) IN GENERAL- Paragraph (11) of section 415(b) (relating to limitation for defined benefit plans) is amended to read as follows:

`(11) SPECIAL LIMITATION RULE FOR GOVERNMENTAL AND MULTIEMPLOYER PLANS- In the case of a governmental plan (as defined in section 414(d)) or a multiemployer plan (as defined in section 414(f)), subparagraph (B) of paragraph (1) shall not apply.'.

(b) EFFECTIVE DATE- The amendment made by this section shall apply to years beginning after December 31, 2000.

At the end of the bill insert the following new titles:

TITLE XVII--COMMITMENT TO DEBT REDUCTION

SEC. 1701. COMMITMENT TO DEBT REDUCTION.

(a) FINDINGS- The Congress finds that--

(1) the national debt of the United States held by the public is $3.619 trillion as of fiscal year 1999;

(2) the Federal budget is projected to produce a surplus each year in the next 10 fiscal years; and

(3) refunding taxes and reducing the national debt held by the public will assure continued economic growth and financial freedom for future generations.

(b) SENSE OF THE CONGRESS- It is the sense of the Congress that the national debt held by the public shall be reduced from $3.619 trillion to a level below $1.61 trillion by fiscal year 2009.

TITLE XVIII--BUDGETARY TREATMENT

SEC. 1801. EXCLUSION OF EFFECTS OF THIS ACT FROM PAYGO SCORECARD.

Upon the enactment of this Act, the Director of the Office of Management and Budget shall not make any estimate of changes in direct spending outlays and receipts under section 252(d) of the Balanced Budget and Emergency Deficit Control Act of 1985 resulting from the enactment of this Act.

Conform the section numbering and the table of contents accordingly.

Attest:

Clerk.

END