H. Res. 256

In the House of Representatives, U.S.,

July 22 (legislative day, July 21), 1999.

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
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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.

1 In the case of taxable years beginning in calendar

2 year 2001, the rounding referred to in the preceding

3 sentence shall be to the next highest tenth.
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1 ‘‘(9) POST-2001 RATE REDUCTIONS CONTIN2 GENT ON NO INCREASE IN INTEREST ON TOTAL

3 UNITED STATES DEBT.—

4 ‘‘(A) IN GENERAL.—In the case of taxable

5 years beginning after December 31, 2001, para6 graph (8) shall apply only to taxable years be7 ginning after the first debt reduction calendar

8 year.

9 ‘‘(B) DELAY OF FURTHER RATE REDUC10 TIONS IF INCREASE IN INTEREST ON TOTAL

11 UNITED STATES DEBT.—For each calendar year

12 after 2000 which is not a debt reduction cal13 endar year, the table in paragraph (8) shall be

14 applied for each subsequent calendar year by

15 substituting the calendar year which is 1 year

16 later. The preceding sentence shall cease to

17 apply after the earliest calendar year with re18 spect to which the applicable percentage under

19 paragraph (8) is 10 percent (after the applica20 tion of the preceding sentence).

21 ‘‘(C) DEBT REDUCTION CALENDAR

22 YEAR.—For purposes of this paragraph, the

23 term ‘debt reduction calendar year’ means any

24 calendar year after 2000 if, for the 12-month

25 period ending on July 31 of such calendar year,
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1 the interest expense on the total United States

2 debt is not greater than such interest expense

3 for the 12-month period ending on July 31 of

4 the preceding calendar year.

5 ‘‘(D) TOTAL UNITED STATES DEBT.—For

6 purposes of this paragraph, the term ‘total

7 United States debt’ means obligations which

8 are subject to the public debt limit in section

9 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:
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1 ‘‘(A) in the case of any taxable year begin2 ning in 2001 or 2002, $50 ($100 in the case

3 of a joint return);

4 ‘‘(B) in the case of any taxable year begin5 ning in 2003 or 2004, $100 ($200 in the case

6 of a joint return); and

7 ‘‘(C) in the case of any taxable year begin8 ning after 2004, $200 ($400 in the case of a

9 joint return).

Page 38, strike line 24 and all that follows through

page 40, line 17, and insert the following:

10 ‘‘(2) a tax of 30 percent of the net capital gain

11 (or, if less, taxable income).

12 ‘‘(b) CROSS REFERENCES.—For computation of the

13 alternative tax—

14 ‘‘(1) in the case of life insurance companies, see

15 section 801(a)(2);

16 ‘‘(2) in the case of regulated investment compa17 nies and their shareholders, see section 852(b)(3)(A)

18 and (D); and

19 ‘‘(3) in the case of real estate investment

20 trusts, see section 857(b)(3)(A).’’.

21 (b) TECHNICAL AMENDMENTS.—
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1 (1) Paragraphs (1) and (2) of section 1445(e)

2 are each amended by striking ‘‘35 percent’’ and in3 serting ‘‘30 percent’’.

4 (2)(A) The second sentence of section

5 7518(g)(6)(A) is amended by striking ‘‘34 percent’’

6 and inserting ‘‘30 percent’’.

7 (B) The second sentence of section

8 607(h)(6)(A) of the Merchant Marine Act, 1936, is

9 amended by striking ‘‘34 percent’’ and inserting ‘‘30

10 percent’’.

11 (c) EFFECTIVE DATES.—

12 (1) IN GENERAL.—Except as provided in para13 graph (2), the amendments made by this section

14 shall apply to taxable years beginning after Decem15 ber 31, 2004.

16 (2) WITHHOLDING.—The amendment made by

17 subsection (b)(1) shall apply to amounts paid after

18 December 31, 2004.

Page 41, strike line 16 and all that follows through

the end of the page and insert the following:

19 ‘‘(2) CORPORATIONS FOR TAXABLE YEARS BE20 GINNING AFTER 2004.—In the case of a corporation

21 for any taxable year beginning after 2004 and before

22 2009, the limitation under paragraph (1) shall be in23 creased by the applicable percentage (determined in
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1 accordance with the following table) of the tentative

2 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:

3 SEC. 611. ADDITIONAL REDUCTIONS OF ESTATE AND GIFT

4 TAX RATES.

5 (a) MAXIMUM RATE OF TAX REDUCED TO 50 PER6 CENT.—

7 (1) IN GENERAL.—The table contained in sec8 tion 2001(c)(1) is amended by striking the 2 highest

9 brackets and inserting the following:

‘‘Over $2,500,000 .......................... $1,025,800, plus 50% of the excess

over $2,500,000.’’.

10 (2) PHASE-IN OF REDUCED RATE.—Subsection

11 (c) of section 2001 is amended by adding at the end

12 the following new paragraph:

13 ‘‘(3) PHASE-IN OF REDUCED RATE.—In the

14 case of decedents dying, and gifts made, during

15 2001, the last item in the table contained in para-
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1 graph (1) shall be applied by substituting ‘53%’ for

2 ‘50%’.’’.

3 (b) REPEAL OF PHASEOUT OF GRADUATED

4 RATES.—Subsection (c) of section 2001 is amended by

5 striking paragraph (2) and redesignating paragraph (3),

6 as added by subsection (a), as paragraph (2).

7 (c) ADDITIONAL REDUCTIONS OF RATES OF TAX.—

8 Subsection (c) of section 2001, as so amended, is amended

9 by adding at the end the following new paragraph:

10 ‘‘(3) PHASEDOWN OF TAX.—In the case of es11 tates of decedents dying, and gifts made, during any

12 calendar year after 2004 and before 2009—

13 ‘‘(A) IN GENERAL.—Except as provided in

14 subparagraph (C), the tentative tax under this

15 subsection shall be determined by using a table

16 prescribed by the Secretary (in lieu of using the

17 table contained in paragraph (1)) which is the

18 same as such table; except that—

19 ‘‘(i) each of the rates of tax shall be

20 reduced by the number of percentage

21 points determined under subparagraph

22 (B); and

23 ‘‘(ii) the amounts setting forth the tax

24 shall be adjusted to the extent necessary to

25 reflect the adjustments under clause (i).
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1 ‘‘(B) PERCENTAGE POINTS OF REDUC2 TION.—

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.

3 ‘‘(C) COORDINATION WITH INCOME TAX

4 RATES.—The reductions under subparagraph

5 (A)—

6 ‘‘(i) shall not reduce any rate under

7 paragraph (1) below the lowest rate in sec8 tion 1(c); and

9 ‘‘(ii) shall not reduce the highest rate

10 under paragraph (1) below the highest rate

11 in section 1(c).

12 ‘‘(D) COORDINATION WITH CREDIT FOR

13 STATE DEATH TAXES.—Rules similar to the

14 rules of subparagraph (A) shall apply to the

15 table contained in section 2011(b) except that

16 the Secretary shall prescribe percentage point

17 reductions which maintain the proportionate re18 lationship (as in effect before any reduction

19 under this paragraph) between the credit under

20 section 2011 and the tax rates under subsection

21 (c).’’.
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1 (d) EFFECTIVE DATES.—

2 (1) SUBSECTIONS (a) AND (b).—The amend3 ments made by subsections (a) and (b) shall apply

4 to estates of decedents dying, and gifts made, after

5 December 31, 2000.

6 (2) SUBSECTION (c).—The amendment made by

7 subsection (c) shall apply to estates of decedents

8 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:

9 SEC. 1264. TREATMENT OF MULTIEMPLOYER PLANS UNDER

10 SECTION 415.

11 (a) IN GENERAL.—Paragraph (11) of section 415(b)

12 (relating to limitation for defined benefit plans) is amend13 ed to read as follows:

14 ‘‘(11) SPECIAL LIMITATION RULE FOR GOVERN15 MENTAL AND MULTIEMPLOYER PLANS.—In the case

16 of a governmental plan (as defined in section
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1 414(d)) or a multiemployer plan (as defined in sec2 tion 414(f)), subparagraph (B) of paragraph (1)

3 shall not apply.’’.

4 (b) EFFECTIVE DATE.—The amendment made by

5 this section shall apply to years beginning after December

6 31, 2000.

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

7 TITLE XVII—COMMITMENT TO

8 DEBT REDUCTION

9 SEC. 1701. COMMITMENT TO DEBT REDUCTION.

10 (a) FINDINGS.—The Congress finds that—

11 (1) the national debt of the United States held

12 by the public is $3.619 trillion as of fiscal year

13 1999;

14 (2) the Federal budget is projected to produce

15 a surplus each year in the next 10 fiscal years; and

16 (3) refunding taxes and reducing the national

17 debt held by the public will assure continued eco18 nomic growth and financial freedom for future gen19 erations.

20 (b) SENSE OF THE CONGRESS.—It is the sense of

21 the Congress that the national debt held by the public

22 shall be reduced from $3.619 trillion to a level below $1.61

23 trillion by fiscal year 2009.
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1 TITLE XVIII—BUDGETARY

2 TREATMENT

3 SEC. 1801. EXCLUSION OF EFFECTS OF THIS ACT FROM

4 PAYGO SCORECARD.

5 Upon the enactment of this Act, the Director of the

6 Office of Management and Budget shall not make any es7 timate of changes in direct spending outlays and receipts

8 under section 252(d) of the Balanced Budget and Emer9 gency Deficit Control Act of 1985 resulting from the en10 actment of this Act.

Conform the section numbering and the table of contents accordingly.

Attest:

Clerk.