```

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5473 Introduced in House (IH)]

109th CONGRESS
  2d Session
                                H. R. 5473

  To repeal the increase in tax on unearned income of minor children 
 enacted by the Tax Increase Prevention and Reconciliation Act of 2005.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 2006

 Mr. Pascrell introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
  To repeal the increase in tax on unearned income of minor children 
 enacted by the Tax Increase Prevention and Reconciliation Act of 2005.

    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 ``Student Savings Act of 2006''.

SEC. 2. REPEAL OF TAX INCREASE ON UNEARNED INCOME OF MINOR CHILDREN.

    Section 510 of the Tax Increase Prevention and Reconciliation Act 
of 2005 (Public Law 109-222), and the amendments made by such section, 
is hereby repealed. The Internal Revenue Code of 1986 shall be applied 
and administered as if such section and amendments had never been 
enacted.

SEC. 3. IMPOSITION OF INDIVIDUAL INCOME TAX SURCHARGE.

    (a) Imposition of Tax.--Section 1 of the Internal Revenue Code of 
1986 (relating to imposition of tax on individuals) is amended by 
adding at the end the following new subsection:
    ``(j) Additional Income Tax.--
            ``(1) In general.--If the adjusted gross income of the 
        taxpayer exceeds the threshold amount, the tax imposed by this 
        section (determined without regard to this subsection) shall be 
        increased by an amount equal to the applicable percentage of so 
        much of the adjusted gross income as exceeds the threshold 
        amount.
            ``(2) Threshold amounts.--For purposes of paragraph (1), 
        the term `threshold amount' means $1,000,000.
            ``(3) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage for a taxable year shall be the 
        percentage which the Secretary shall determine will (after the 
        application of paragraph (1)) result in an increase in revenues 
        to the Treasury for the taxable year in an amount equal to the 
        decrease in such revenues by reason of the enactment of section 
        2 of the Student Savings Act of 2006.
            ``(4) Tax not to apply to estates and trusts.--This 
        subsection shall not apply to an estate or trust.''.
    (b) Coordination With Minimum Tax.--Section 55(c) of such Code 
(defining regular tax) is amended by redesignating paragraph (3) as 
paragraph (4) and by inserting after paragraph (2) the following new 
paragraph:
            ``(3) Coordination with minimum tax.--Solely for purposes 
        of this section, section 1(j) shall not apply in computing the 
        regular tax.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.
    (d) Section 15 Not To Apply.--The amendments made by this section 
shall not be treated as a change in a rate of tax for purposes of 
section 15 of the Internal Revenue Code of 1986.
                                 <all>
```