I 

112TH CONGRESS 

1ST SESSION H. R. 1074 

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

tax rate to 10 percent and to lower the rate of tax on capital gains 

and dividends to 10 percent. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 14, 2011 

Mr. TIPTON 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 

the corporate income tax rate to 10 percent and to 

lower the rate of tax on capital gains and dividends 

to 10 percent. 

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

3 SECTION 1. CORPORATE INCOME TAX RATE REDUCED TO 

4 10 PERCENT. 

5 (a) IN GENERAL.—Paragraph (1) of section 11(b) of 

6 the Internal Revenue Code of 1986 is amended by striking 

7 ‘‘shall be the sum of—’’ and all that follows through the 


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1 period at the end and inserting ‘‘shall be 10 percent of 

2 taxable income.’’. 

3 (b) PERSONAL SERVICE CORPORATIONS.—Para4 graph (2) of section 11(b) of such Code is amended by 

5 striking ‘‘35 percent’’ and inserting ‘‘10 percent’’. 

6 (c) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2011. 

9 SEC. 2. TEN PERCENT CAPITAL GAINS RATE FOR INDIVID10 UALS AND CORPORATIONS. 

11 (a) TEN PERCENT CAPITAL GAINS RATE FOR INDI12 VIDUALS.— 

13 (1) IN GENERAL.—Subparagraph (C) of section 

14 1(h)(1) of the Internal Revenue Code of 1986 is 

15 amended by striking ‘‘15 percent’’ and inserting ‘‘10 

16 percent’’. 

17 (2) ALTERNATIVE MINIMUM TAX.—Subpara18 graph (C) of section 55(b)(3) of such Code is 

19 amended by striking ‘‘15 percent’’ and inserting ‘‘10 

20 percent’’. 

21 (3) REPEAL OF SUNSET OF REDUCTION IN CAP22 ITAL GAINS RATES FOR INDIVIDUALS.—Section 303 

23 of the Jobs and Growth Tax Relief Reconciliation 

24 Act of 2003 shall not apply to section 301 of such 

25 Act. 


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1 (b) TEN PERCENT CAPITAL GAINS RATE FOR COR2 PORATIONS.— 

3 (1) IN GENERAL.—Subsection (a) of section 

4 1201 of such Code is amended by striking ‘‘35 per5 cent’’ each place it appears and inserting ‘‘10 per6 cent’’. 

7 (2) ALTERNATIVE MINIMUM TAX.—Section 

8 55(b) of such Code is amended by adding at the end 

9 the following new paragraph: 

10 ‘‘(4) MAXIMUM RATE OF TAX ON NET CAPITAL

11 GAIN OF CORPORATIONS.—The amount determined 

12 under paragraph (1)(B)(i) shall not exceed the sum 

13 of— 

14 ‘‘(A) the amount determined under such 

15 paragraph computed at the rates and in the 

16 same manner as if this paragraph had not been 

17 enacted on the taxable excess reduced by the 

18 net capital gain, plus 

19 ‘‘(B) the amount determined under section 

20 1201.’’. 

21 (3) TECHNICAL AMENDMENTS.— 

22 (A) Section 1445(e)(1) of such Code is 

23 amended by striking ‘‘35 percent (or, to the ex24 tent provided in regulations, 15 percent)’’ and 

25 inserting ‘‘10 percent’’. 


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1 (B) Section 1445(e)(2) of such Code is 

2 amended by striking ‘‘35 percent’’ and inserting 

3 ‘‘10 percent’’. 

4 (C) Section 7518(g)(6)(A) of such Code is 

5 amended by striking ‘‘15 percent (34 percent in 

6 the case of a corporation)’’ and inserting ‘‘10 

7 percent’’. 

8 (D) Section 607(h)(6)(A) of the Merchant 

9 Marine Act, 1936 is amended by striking ‘‘15 

10 percent (34 percent in the case of a corpora11 tion)’’ and inserting ‘‘10 percent’’. 

12 (c) EFFECTIVE DATE.— 

13 (1) IN GENERAL.—Except as provided in para14 graph (2), the amendments made by this section 

15 shall apply to taxable years ending after the date of 

16 the enactment of this Act. 

17 (2) WITHHOLDING.—The amendments made by 

18 subparagraphs (A) and (B) of subsection (b)(3) 

19 shall take apply to dispositions and distributions 

20 after the date of the enactment of this Act. 

Æ 


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