To amend the Internal Revenue Code of 1986 to modify the highest marginal income tax rates and to increase the estate tax deduction for family-owned business interests, to repeal certain sections of the Economic Growth and Tax Relief Reconciliation Act of 2001 related to personal exemptions, itemized deductions, and the estate tax, to establish a legislative task force to determine when and whether certain critical national priorities have been accomplished, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``First Things First Act''.

SEC. 2. PURPOSE.

    The purpose of this Act is to delay the implementation of certain 
amendments to the Internal Revenue Code of 1986 until a legislative 
task force has certified the achievement of each of the following 
critical national priorities:
            (1) The provision of aid and relief to persons physically 
        or economically injured as a result of the terrorist acts 
        against the United States that occurred on September 11, 2001.
            (2) The security of the Social Security and Medicare trust 
        funds.
            (3) The provision of a comprehensive prescription drug 
        benefit to Medicare beneficiaries.
            (4) The provision of Federal funding for a major school 
        modernization effort and the hiring of 100,000 teachers.
            (5) A significant reduction since 2001 in the number of 
        United States citizens who face worst case housing needs.

SEC. 3. MODIFICATION OF THE HIGHEST MARGINAL INCOME TAX RATES.

    (a) In General.--Paragraph (2) of section 1(i) of the Internal 
Revenue Code of 1986 (relating to reductions in rates after June 30, 
2001) is amended by striking the table and inserting the following:


------------------------------------------------------------------------
                                  The corresponding percentages shall be
              ``In the case of        substituted for  the following
                taxable years                  percentages:
              beginning during   ---------------------------------------
               calendar year:       28%      31%      36%       39.6%
------------------------------------------------------------------------
            2001................   27.5%    30.5%    35.5%      39.1%
            2002 and 2003.......   27.0%    30.5%    35.5%      39.6%
            2004 and 2005.......   26.0%    30.5%    35.5%      39.6%
            2006 and thereafter.   25.0%    30.5%    35.5%     39.6%''.
------------------------------------------------------------------------

    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2000.

SEC. 4. REPEAL OF PHASEOUT OF OVERALL LIMITATION ON ITEMIZED DEDUCTIONS 
              AND OF TERMINATION OF PHASEOUT OF PERSONAL EXEMPTIONS.

    Sections 102 and 103 of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 (and the amendments made by such sections) 
are hereby repealed, and the Internal Revenue Code of 1986 shall be 
applied and administered as if such sections (and amendments) had never 
been enacted.

SEC. 5. REPEAL OF THE TERMINATION OF THE ESTATE AND GENERATION-SKIPPING 
              TRANSFER TAXES AND STEP-UP IN BASIS AT DEATH, AND RELATED 
              REPEALS.

    Subtitles A, B, C, D, and E of title V of the Economic Growth and 
Tax Relief Reconciliation Act of 2001 (and the amendments made by such 
subtitles) are hereby repealed, and the Internal Revenue Code of 1986 
shall be applied and administered as if such subtitles (and amendments) 
had never been enacted.

SEC. 6. INCREASE IN THE ESTATE TAX DEDUCTION FOR FAMILY-OWNED BUSINESS 
              INTEREST.

    (a) In General.--Paragraph (2) of section 2057(a) of the Internal 
Revenue Code of 1986 (relating to maximum deduction) is amended by 
striking ``$675,000'' and inserting ``$4,000,000''.
    (b) Conforming Amendments.--Subparagraph (B) of section 2057(a)(3) 
of the Internal Revenue Code of 1986 (relating to coordination with 
unified credit) is amended by striking ``$675,000'' each place it 
appears in the text and heading and inserting ``$4,000,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying after the date of the enactment of 
this Act.

SEC. 7. NATIONAL PRIORITIES ASSESSMENT TASK FORCE.

    (a) Establishment.--There is established in the legislative branch 
a task force to be known as the ``National Priorities Assessment Task 
Force'' (in this section referred to as the ``Task Force'').
    (b) Duties.--The Task Force shall determine when and whether 
Congress has achieved each of the following:
            (1) The provision of aid and relief to persons physically 
        or economically injured as a result of the terrorist acts 
        against the United States that occurred on September 11, 2001.
            (2) The security of the Social Security and Medicare trust 
        funds.
            (3) The provision of a comprehensive prescription drug 
        benefit to Medicare beneficiaries.
            (4) The provision of Federal funding for a major school 
        modernization effort and the hiring of 100,000 teachers.
            (5) A significant reduction since 2001 in the number of 
        United States citizens who face worst case housing needs.
    (c) Membership.--The Task Force shall be composed of 16 members as 
follows:
            (1) The chairperson and the ranking minority member of the 
        Committee on the Budget of the House of Representatives.
            (2) The chairperson and the ranking minority member of the 
        Committee on Energy and Commerce of the House of 
        Representatives.
            (3) The chairperson and the ranking minority member of the 
        Committee on Education and the Workforce of the House of 
        Representatives.
            (4) The chairperson and the ranking minority member of the 
        Committee on Ways and Means of the House of Representatives.
            (5) The chairperson and the ranking minority member of the 
        Committee on the Budget of the Senate.
            (6) The chairperson and the ranking minority member of the 
        Committee on Banking, Housing, and Urban Affairs of the Senate.
            (7) The chairperson and the ranking minority member of the 
        Committee on Health, Education, Labor and Pensions of the 
        Senate.
            (8) The chairperson and the ranking minority member of the 
        Committee on Finance of the Senate.
    (d) Final Report.--
            (1) In general.--The Task Force shall transmit a final 
        report to Congress not later than 30 days after the date on 
        which the Task Force makes the determinations described in 
        subsection (b). The final report shall contain a detailed 
        statement of the findings and conclusions on which the 
        determinations of the Task Force under subsection (b) are 
        based.
            (2) Required determinations.--The Task Force shall not 
        transmit a final report under paragraph (1) until the Task 
        Force has made the determinations described in subsection (b).
    (e) Interim Reports.--The Task Force may submit to Congress interim 
reports as the Task Force considers appropriate.
    (f) Administration.--
            (1) Pay.--Members of the Task Force shall serve without 
        pay.
            (2) Quorum.--9 members of the Task Force shall constitute a 
        quorum.
            (3) Chairperson; vice chairperson.--The Chairperson and 
        Vice Chairperson of the Task Force shall be elected by the 
        members.
            (4) Meetings.--The Task Force shall meet at the call of the 
        Chairperson or a majority of its members.
    (g) Powers of the Task Force.--
            (1) Hearings.--The Task Force may, for the purpose of 
        carrying out this section, hold hearings, sit and act at times 
        and places, take testimony, and receive evidence as the Task 
        Force considers appropriate.
            (2) Obtaining official data.--The Task Force may secure 
        directly from any department or agency of the United States 
        information necessary to enable it to carry out this section. 
        Upon request of the Chairperson of the Task Force, the head of 
        that department or agency shall furnish that information to the 
        Task Force.
    (h) Funding.--
            (1) In general.--No funds may be provided to the Task 
        Force.
            (2) Availability of committee funds.--Notwithstanding 
        paragraph (1), any committee described in subsection (c) may 
        make funds available for the activities of a member of the Task 
        Force to carry out this section if such member of the Task 
        Force is also a member of such committee.
    (i) Termination.--The Task Force shall terminate 30 days after 
transmitting its final report under subsection (d).

Summary: First Things First Act-Amends the Internal Revenue Code to raise certain highest marginal income tax rates. Amends the Economic Growth and Tax Relief Reconciliation Act of 2001 to: (1) repeal the phaseout of the overall limitation on itemized deductions and restore the phaseout of personal exemptions. And (2) repeal the termination of the estate and generation-skipping transfer taxes, step-up basis at death, and related items. Amends the Internal Revenue Code to increase the estate tax deduction for family-owned business interests. Establishes the National Priorities Assessment Task Force in the legislative branch. Requires such Task Force to evaluate congressional success in the following areas: (1) the provision of aid and relief to persons injured as a result of the September 11, 2001, terrorist attacks. (2) the security of the Social Security and Medicare trust funds. (3) the provision of a comprehensive prescription drug benefit to Medicare beneficiaries. (4) the provision of Federal funding for school modernization and teacher hiring, and (5) a significant reduction in worst case housing needs.