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[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1492 Introduced in Senate (IS)]

107th CONGRESS
  1st Session
                                S. 1492

  To amend the Internal Revenue Code of 1986 to repeal the tax relief 
  sunset and to reduce the maximum capital gains rates for individual 
                   taxpayers, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 3, 2001

 Mr. Gramm (for himself and Mr. Miller) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To amend the Internal Revenue Code of 1986 to repeal the tax relief 
  sunset and to reduce the maximum capital gains rates for individual 
                   taxpayers, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Revitalization Tax Cut 
Act''.

SEC. 2. REPEAL OF SUNSET.

    (a) In General.--Title IX of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 is repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall take 
effect on and after the date of the enactment of this Act.

SEC. 3. REDUCTION OF MAXIMUM CAPITAL GAINS RATES FOR INDIVIDUALS.

    (a) In General.--Section 1(h) of the Internal Revenue Code of 1986 
(relating to maximum capital gains rate) is amended to read as follows:
    ``(h) Maximum Capital Gains Rate.--
            ``(1) In general.--If a taxpayer has a net capital gain for 
        any taxable year, the tax imposed by this section for such 
        taxable year shall not exceed the sum of--
                    ``(A) a tax computed on taxable income reduced by 
                the net capital gain, at the rates and in the same 
                manner as if this subsection had not been enacted,
                    ``(B) 7.5 percent of so much of the taxpayer's net 
                capital gain (or, if less, taxable income) as does not 
                exceed the excess (if any) of--
                            ``(i) the amount of taxable income which 
                        would (without regard to this paragraph) be 
                        taxed at a rate of 15 percent or less, over
                            ``(ii) the amount on which tax is 
                        determined under subparagraph (A), plus
                    ``(C) 15 percent of the taxpayer's net capital gain 
                (or, if less, taxable income) in excess of the amount 
                of capital gain on which tax is determined under 
                subparagraph (B).
            ``(2) Net capital gain taken into account as investment 
        income.--For purposes of this subsection, the net capital gain 
        for any taxable year shall be reduced (but not below zero) by 
        the amount which the taxpayer elects to take into account as 
        investment income for the taxable year under section 
        163(d)(4)(B)(iii).''.
    (b) Minimum Tax.--
            (1) In general.--Subparagraph (A) of section 55(b)(1) of 
        the Internal Revenue Code of 1986 (relating to amount of 
        tentative tax) is amended by redesignating clauses (ii) and 
        (iii) as clauses (iii) and (iv), respectively, and by inserting 
        after clause (i) the following new clause:
                            ``(ii) Maximum rate of tax on net capital 
                        gain.--The amount determined under the first 
                        sentence of clause (i) shall not exceed the sum 
                        of--
                                    ``(I) the amount determined under 
                                such first sentence computed at the 
                                rates and in the same manner as if this 
                                clause had not been enacted on the 
                                taxable excess reduced by the net 
                                capital gain, plus
                                    ``(II) a tax of 15 percent of the 
                                lesser of the net capital gain or the 
                                taxable excess.''
            (2) Conforming amendment.--Section 55(b) of such Code is 
        amended by striking paragraph (3).
    (c) Conforming Amendments.--
            (1) Section 57(a)(7) of the Internal Revenue Code of 1986 
        is amended by striking the last sentence.
            (2) Paragraph (1) of section 1445(e) of such Code is 
        amended by striking ``20 percent'' and inserting ``15 
        percent''.
            (3)(A) The second sentence of section 7518(g)(6)(A) of such 
        Code is amended by striking ``20 percent'' and inserting ``15 
        percent''.
            (B) The second sentence of section 607(h)(6)(A) of the 
        Merchant Marine Act, 1936 is amended by striking ``20 percent'' 
        and inserting ``15 percent''.
    (d) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years ending after December 31, 2001.
            (2) Withholding.--The amendment made by subsection (c)(2) 
        shall apply to amounts paid after the date of the enactment of 
        this Act.
                                 <all>
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