I

107TH CONGRESS

1ST SESSION H. R. 1342

To amend the Internal Revenue Code of 1986 reduce individual capital

gains rates.

IN THE HOUSE OF REPRESENTATIVES

APRIL 3, 2001

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

Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 reduce

individual capital gains rates.

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.

4 This Act may be cited as the ‘‘Capital Gains Tax

5 Rate Reduction Act of 2001’’.

6 SEC. 2. REDUCTION IN CAPITAL GAINS RATES FOR INDIVID7 UALS.

8 (a) IN GENERAL.—

9 (1) 10-PERCENT RATE REDUCED TO 5 PER10 CENT.—Subparagraph (B) of section 1(h) of the In-
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1 ternal Revenue Code of 1986 (relating to general

2 rule for maximum capital gains rate) is amended by

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

4 (2) 20-PERCENT RATE REDUCED TO 10 PER5 CENT.—Subparagraph (C) of section 1(h) of such

6 Code is amended by striking ‘‘20 percent’’ and in7 serting ‘‘10 percent’’.

8 (3) CONFORMING AMENDMENTS.—

9 (A) Section 57(a)(7) of such Code is

10 amended by striking the last sentence.

11 (B) Paragraph (1) of section 1445(e) is

12 amended by striking ‘‘20 percent’’ and inserting

13 ‘‘10 percent’’.

14 (C) The second sentence of section

15 7518(g)(6)(A), and the second sentence of sec16 tion 607(h)(6)(A) of the Merchant Marine Act,

17 1936, are each amended by striking ‘‘20 per18 cent’’ and inserting ‘‘10 percent’’.

19 (b) REPEAL OF REDUCED RATES FOR QUALIFIED 5-

20 YEAR GAIN.—

21 (1) IN GENERAL.—Section 1(h) of such Code is

22 amended by striking paragraph (2) and redesig23 nating paragraphs (3) through (13) as paragraphs

24 (2) through (12), respectively.

25 (2) CONFORMING AMENDMENTS.—
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1 (A) Subparagraph (A)(ii) of section

2 1(h)(6) of such Code, as redesignated by para3 graph (1), is amended—

4 (i) in subclause (I) by striking ‘‘para5 graph (5)(B)’’ and inserting ‘‘paragraph

6 (4)(B)’’, and

7 (ii) in subclause (II) by striking

8 ‘‘paragraph (5)(A)’’ and inserting ‘‘para9 graph (4)(A)’’.

10 (B) Paragraph (9) of section 1(h) of such

11 Code is amended by striking ‘‘paragraph

12 (7)(A)(i)’’ and inserting ‘‘paragraph (6)(A)(i)’’.

13 (C) Section 1(h) of such Code is amended

14 by striking paragraph (12), as redesignated by

15 paragraph (1).

16 (c) MINIMUM TAX.—

17 (1) IN GENERAL.—

18 (A) 10-PERCENT RATE REDUCED TO 5

19 PERCENT.—Subparagraph (B) of section

20 55(b)(3) of such Code is amended by striking

21 ‘‘10 percent’’ and inserting ‘‘5 percent’’.

22 (B) 20-PERCENT RATE REDUCED TO 10

23 PERCENT.—Subparagraph (C) of section

24 55(b)(3) of such Code is amended by striking

25 ‘‘20 percent’’ and inserting ‘‘10 percent’’.
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1 (2) CONFORMING AMENDMENT.—Paragraph (3)

2 of section 55(b) of such Code is amended in the

3 matter following subparagraph (D) by striking ‘‘In

4 the case of taxable years beginning after December

5 31, 2000, rules similar to the rules of section

6 1(h)(2) shall apply for purposes of subparagraphs

7 (B) and (C).’’.

8 (d) EFFECTIVE DATES.—

9 (1) IN GENERAL.—Except as provided by para10 graph (2), the amendments made by this section

11 shall apply to taxable years beginning after Decem12 ber 31, 2000.

13 (2) WITHHOLDING.—The amendment made by

14 subsection (a)(3)(B) shall apply to amounts paid

15 after the date of the enactment of this Act.

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