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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 42 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                 H. R. 42

 To amend the Internal Revenue Code of 1986 reduce individual capital 
                              gains rates.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 2003

 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.

    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 ``Capital Gains Tax Rate Reduction Act 
of 2003''.

SEC. 2. REDUCTION IN CAPITAL GAINS RATES FOR INDIVIDUALS.

    (a) In General.--
            (1) 10-percent rate reduced to 5 percent.--Subparagraph (B) 
        of section 1(h) of the Internal Revenue Code of 1986 (relating 
        to general rule for maximum capital gains rate) is amended by 
        striking ``10 percent'' and inserting ``5 percent''.
            (2) 20-percent rate reduced to 10 percent.--Subparagraph 
        (C) of section 1(h) of such Code is amended by striking ``20 
        percent'' and inserting ``10 percent''.
            (3) Conforming amendments.--
                    (A) Section 57(a)(7) of such Code is amended by 
                striking the last sentence.
                    (B) Paragraph (1) of section 1445(e) of such Code 
                is amended by striking ``20 percent'' and inserting 
                ``10 percent''.
                    (C) The second sentence of section 7518(g)(6)(A), 
                and the second sentence of section 607(h)(6)(A) of the 
                Merchant Marine Act, 1936, are each amended by striking 
                ``20 percent'' and inserting ``10 percent''.
    (b) Repeal of Reduced Rates for Qualified 5-Year Gain.--
            (1) In general.--Section 1(h) of such Code is amended by 
        striking paragraph (2) and redesignating paragraphs (3) through 
        (12) as paragraphs (2) through (11), respectively.
            (2) Conforming amendments.--
                    (A) Subparagraph (A)(ii) of section 1(h)(6) of such 
                Code, as redesignated by paragraph (1), is amended--
                            (i) in subclause (I) by striking 
                        ``paragraph (5)(B)'' and inserting ``paragraph 
                        (4)(B)'', and
                            (ii) in subclause (II) by striking 
                        ``paragraph (5)(A)'' and inserting ``paragraph 
                        (4)(A)''.
                    (B) Paragraph (9) of section 1(h) of such Code is 
                amended by striking ``paragraph (7)(A)(i)'' and 
                inserting ``paragraph (6)(A)(i)''.
    (c) Minimum Tax.--
            (1) In general.--
                    (A) 10-percent rate reduced to 5 percent.--
                Subparagraph (B) of section 55(b)(3) of such Code is 
                amended by striking ``10 percent'' and inserting ``5 
                percent''.
                    (B) 20-percent rate reduced to 10 percent.--
                Subparagraph (C) of section 55(b)(3) of such Code is 
                amended by striking ``20 percent'' and inserting ``10 
                percent''.
            (2) Conforming amendment.--Paragraph (3) of section 55(b) 
        of such Code is amended in the matter following subparagraph 
        (D) by striking ``In the case of taxable years beginning after 
        December 31, 2000, rules similar to the rules of section 
        1(h)(2) shall apply for purposes of subparagraphs (B) and 
        (C).''.
    (d) Effective Dates.--
            (1) In general.--Except as provided by paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2002.
            (2) Withholding.--The amendment made by subsection 
        (a)(3)(B) shall apply to amounts paid after the date of the 
        enactment of this Act.
                                 <all>
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