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106TH CONGRESS

1ST SESSION H. R. 767

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 12, 1999

Mr. THUNE (for himself, Ms. DUNN, Mr. COOKSEY, and Mr. CHABOT) 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 ‘‘Middle Class Tax Relief 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 3 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. FINDINGS.

9 The Congress hereby finds that—

10 (1) the first Federal budget surplus in almost

11 30 years was realized at the end of fiscal year 1998

12 and additional annual surpluses are anticipated;

13 (2) in anticipation of such surpluses, a system14 atic plan should be put in place to retire our

15 $5,500,000,000,000 debt while restoring the social

16 security and other trust funds; and

17 (3) once such a plan has been adopted in the

18 context of a balanced Federal budget and as an al19 ternative to new Government spending, Congress

20 should provide broad-based tax relief that will allow

21 hard-working Americans to keep more of what they

22 earn and the freedom to provide for their own needs.
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1 SEC. 3. REDUCTION OF INCOME TAX RATES; ELIMINATION

2 OF MARRIAGE PENALTY.

3 (a) GENERAL RULE.—Section 1 (relating to tax im4 posed) is amended by striking subsections (a) through (e)

5 and inserting the following:

6 ‘‘(a) MARRIED INDIVIDUALS FILING JOINT RETURNS

7 AND SURVIVING SPOUSES.—There is hereby imposed on

8 the taxable income of—

9 ‘‘(1) every married individual (as defined in sec10 tion 7703) who makes a single return jointly with

11 his spouse under section 6013, and

12 ‘‘(2) every surviving spouse (as defined in sec13 tion 2(a)),

14 a tax determined in accordance with the following table:

‘‘If taxable income is: The tax is:

Not over $70,000 .......................... 15% of taxable income.

Over $70,000 but not over

$104,050.

$10,500, plus 28% of the excess over

$70,000.

Over $104,050 but not over

$158,550.

$20,034, plus 31% of the excess over

$104,050.

Over $158,550 but not over

$283,150.

$36,929, plus 36% of the excess over

$158,550.

Over $283,150 ............................... $81,785, plus 39.6% of the excess

over $283,150.

15 ‘‘(b) HEADS OF HOUSEHOLDS.—There is hereby im16 posed on the taxable income of every head of a household

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

18 with the following table:

‘‘If taxable income is: The tax is:

Not over $52,600 .......................... 15% of taxable income.

Over $52,600 but not over

$89,150.

$7,890, plus 28% of the excess over

$52,600.
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‘‘If taxable income is: The tax is:

Over $89,150 but not over

$144,400.

$18,124, plus 31% of the excess over

$89,150.

Over $144,400 but not over

$283,150.

$35,251.50, plus 36% of the excess

over $144,400.

Over $283,150 ............................... $85,201.50, plus 39.6% of the excess

over $283,150.

1 ‘‘(c) UNMARRIED INDIVIDUALS (OTHER THAN SUR2 VIVING SPOUSES AND HEADS OF HOUSEHOLDS).—There

3 is hereby imposed on the taxable income of every individ4 ual (other than a surviving spouse as defined in section

5 2(a) or the head of a household as defined in section 2(b))

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

7 7703) a tax determined in accordance with the following

8 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.

9 ‘‘(d) MARRIED INDIVIDUALS FILING SEPARATE RE10 TURNS.—There is hereby imposed on the taxable income

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

12 who does not make a single return jointly with his spouse

13 under section 6013, a tax determined in accordance with

14 the following table:

‘‘If taxable income is: The tax is:

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

Over $35,000 but not over

$52,025.

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

$35,000.

Over $52,025 but not over

$79,275.

$10,017, plus 31% of the excess over

$52,025.
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‘‘If taxable income is: The tax is:

Over $79,275 but not over

$141,575.

$18,464.50, plus 36% of the excess

over $79,275.

Over $141,575 ............................... $40,892.50, plus 39.6% of the excess

over $141,575.

1 ‘‘(e) ESTATES AND TRUSTS.—There is hereby im2 posed on the taxable income of—

3 ‘‘(1) every estate, and

4 ‘‘(2) every trust,

5 taxable under this subsection a tax determined in accord6 ance 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.’’.

7 (b) CONFORMING AMENDMENTS.—

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

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

10 and inserting ‘‘1999’’,

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

12 (3)(B) and inserting ‘‘1998’’, and

13 (C) by striking paragraph (7).

14 (2) The following provisions are each amended

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

16 it appears:

17 (A) Section 25A(h).

18 (B) Section 32(j)(1)(B).
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1 (C) Section 41(e)(5)(C).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

19 (U) Section 6039F(d).

20 (V) Section 6323(i)(4)(B).

21 (W) Section 6601(j)(3)(B).

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

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

24 amended by striking ‘‘1987’’ and inserting ‘‘1998’’.
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1 (4) Subparagraph (B) of section 6334(g)(1) is

2 amended by striking ‘‘by substituting ‘calendar year

3 1998’ for ‘calendar year 1992’ in subparagraph (B)

4 thereof’’.

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

6 this section shall apply to taxable years beginning after

7 December 31, 1998.

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