I

106TH CONGRESS

1ST SESSION H. R. 565

To amend the Internal Revenue Code of 1986 to reduce individual income

taxes by increasing the amount of taxable income which is taxed at

the lowest income tax rate.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 3, 1999

Mr. THORNBERRY introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to reduce

individual income taxes by increasing the amount of taxable income which is taxed at the lowest income tax

rate.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Better Bracket Act of 1999’’.

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment
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1 to, or repeal of, a section or other provision, the reference

2 shall be considered to be made to a section or other provi3 sion of the Internal Revenue Code of 1986.

4 (c) SECTION 15 NOT TO APPLY.—No amendment

5 made by section 2 shall be treated as a change in a rate

6 of tax for purposes of section 15 of the Internal Revenue

7 Code of 1986.

8 SEC. 2. REDUCTION IN INDIVIDUAL INCOME TAX RATES.

9 (a) GENERAL RULE.—Section 1 (relating to tax im10 posed) is amended by striking subsections (a) through (e)

11 and inserting the following:

12 ‘‘(a) MARRIED INDIVIDUALS FILING JOINT RETURNS

13 AND SURVIVING SPOUSES.—There is hereby imposed on

14 the taxable income of—

15 ‘‘(1) every married individual (as defined in sec16 tion 7703) who makes a single return jointly with

17 his spouse under section 6013, and

18 ‘‘(2) every surviving spouse (as defined in sec19 tion 2(a)),

20 a tax determined in accordance with the following table:

‘‘If taxable income is: The tax is:

Not over $58,000 .......................... 15% of taxable income.

Over $58,000 but not over

$104,050.

$8,700, plus 28% of the excess over

$58,000

Over $104,050 but not over

$158,550.

$21,594, plus 31% of the excess over

$104,050

Over $158,550 but not over

$283,150.

$38,489, plus 36% of the excess over

$158,550

Over $283,150 ............................... $83,345, plus 39.6% of the excess

over $283,150
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1 ‘‘(b) HEADS OF HOUSEHOLDS.—There is hereby im2 posed on the taxable income of every head of a household

3 (as defined in section 2(b)) a tax determined in accordance

4 with the following table:

‘‘If taxable income is: The tax is:

Not over $47,000 .......................... 15% of taxable income.

Over $47,000 but not over

$89,150.

$7,050, plus 28% of the excess over

$47,000

Over $89,150 but not over

$144,400.

$18,852, plus 31% of the excess over

$89,150

Over $144,400 but not over

$283,150.

$35,979.50, plus 36% of the excess

over $144,400

Over $283,150 ............................... $85,929.50, plus 39.6% of the excess

over $283,150

5 ‘‘(c) UNMARRIED INDIVIDUALS (OTHER THAN SUR6 VIVING SPOUSES AND HEADS OF HOUSEHOLDS).—There

7 is hereby imposed on the taxable income of every individ8 ual (other than a surviving spouse as defined in section

9 2(a) or the head of a household as defined in section 2(b))

10 who is not a married individual (as defined in section

11 7703) a tax determined in accordance with the following

12 table:

‘‘If taxable income is: The tax is:

Not over $35,000 .......................... 15% of taxable income.

Over $35,000 but not over

$62,450.

$5,250, plus 28% of the excess over

$35,000.

Over $62,450 but not over

$130,250.

$12,936, plus 31% of the excess over

$62,450.

Over $130,250 but not over

$283,150.

$33,954, plus 36% of the excess over

$130,250.

Over $283,150 ............................... $88,998, plus 39.6% of the excess

over $283,150.

13 ‘‘(d) MARRIED INDIVIDUALS FILING SEPARATE RE14 TURNS.—There is hereby imposed on the taxable income

15 of every married individual (as defined in section 7703)

16 who does not make a single return jointly with his spouse
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1 under section 6013, a tax determined in accordance with

2 the following table:

‘‘If taxable income is: The tax is:

Not over $29,000 .......................... 15% of taxable income.

Over $29,000 but not over

$52,025.

$4,350, plus 28% of the excess over

$29,000

Over $52,025 but not over

$79,275.

$10,797, plus 31% of the excess over

$52,025

Over $79,275 but not over

$141,575.

$19,244.50, plus 36% of the excess

over $79,275

Over $141,575 ............................... $41,672.50, plus 39.6% of the excess

over $141,575

3 ‘‘(e) ESTATES AND TRUSTS.—There is hereby im4 posed on the taxable income of—

5 ‘‘(1) every estate, and

6 ‘‘(2) every trust,

7 taxable under this subsection a tax determined in accord8 ance with the following table:

‘‘If taxable income is: The tax is:

Not over $1,700 ............................ 15% of taxable income.

Over $1,700 but not over $4,050 .. $255, plus 28% of the excess over

$1,700

Over $4,050 but not over $6,200 .. $913, plus 31% of the excess over

$4,050

Over $6,200 but not over $8,450 .. $1,579.50, plus 36% of the excess

over $6,200

Over $8,450 ................................... $2,389.50, plus 39.6% of the excess

over $8,450

9 (b) CONFORMING AMENDMENTS.—

10 (1) Subsection (f) of section 1 is amended—

11 (A) by striking ‘‘1993’’ in paragraph (1)

12 and inserting ‘‘1999’’,

13 (B) by striking ‘‘1992’’ in paragraph

14 (3)(B) and inserting ‘‘1998’’, and

15 (C) by striking paragraph (7).
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1 (2) The following provisions are each amended

2 by striking ‘‘1992’’ and inserting ‘‘1998’’ each place

3 it appears:

4 (A) Section 25A(h).

5 (B) Section 32(j)(1)(B).

6 (C) Section 41(e)(5)(C).

7 (D) Section 59(j)(2)(B).

8 (E) Section 63(c)(4)(B).

9 (F) Section 68(b)(2)(B).

10 (G) Section 135(b)(2)(B)(ii).

11 (H) Section 151(d)(4).

12 (I) Section 220(g)(2).

13 (J) Section 221(g)(1)(B).

14 (K) Section 512(d)(2)(B).

15 (L) Section 513(h)(2)(C)(ii).

16 (M) Section 685(c)(3)(B).

17 (N) Section 877(a)(2).

18 (O) Section 911(b)(2)(D)(ii)(II).

19 (P) Section 2032A(a)(3)(B).

20 (Q) Section 2503(b)(2)(B).

21 (R) Section 2631(c)(1)(B).

22 (S) Section 4001(e)(1)(B).

23 (T) Section 4261(e)(4)(A)(ii).

24 (U) Section 6039F(d).

25 (V) Section 6323(i)(4)(B).
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1 (W) Section 6601(j)(3)(B).

2 (X) Section 7430(c)(1).

3 (3) Subclause (II) of section 42(h)(6)(G)(i) is

4 amended by striking ‘‘1987’’ and inserting ‘‘1998’’.

5 (c) EFFECTIVE DATE.—The amendments made by

6 this section shall apply to taxable years beginning after

7 December 31, 1999.

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