I 

108TH CONGRESS 

1ST SESSION H. R. 459

To amend the Internal Revenue Code of 1986 to provide economic stimulus. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 29, 2003

Mr. HAYWORTH (for himself, Mr. CRANE, Mr. CANNON, Mr. CARTER, Mr. 

ISSA, Mr. WAMP, Mr. WILSON of South Carolina, Mr. PITTS, Mr. SENSENBRENNER, Mr. SOUDER, Mr. GOODE, Mr. MILLER of Florida, and 

Mr. SHAYS) 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 provide 

economic stimulus.

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 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Economic Growth Act of 2003’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 

9 to, or repeal of, a section or other provision, the reference 
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1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

3 SEC. 2. REDUCTION OF RATES OF TAX ON NET CAPITAL 

4 GAIN. 

5 (a) IN GENERAL.—Paragraph (1) of section 1(h) (re6 lating to maximum capital gains rate) is amended by strik7 ing ‘‘10 percent’’ and inserting ‘‘0 percent’’ and by strik8 ing ‘‘20 percent’’ and inserting ‘‘10 percent’’. 

9 (b) CONFORMING AMENDMENTS.—

10 (1) The following sections are each amended by 

11 striking ‘‘20 percent’’ and inserting ‘‘10 percent’’: 

12 (A) Section 55(b)(3)(C). 

13 (B) Section 1445(e)(1). 

14 (C) The second sentence of section 

15 7518(g)(6)(A). 

16 (D) The second sentence of section 

17 607(h)(6)(A) of the Merchant Marine Act, 

18 1936. 

19 (2) Section 311 of the Taxpayer Relief Act of 

20 1997 is amended by striking subsection (e). 

21 (3) Section 1(h) is amended—

22 (A) by striking paragraphs (2) and (9), 

23 (B) by redesignating paragraphs (3) 

24 through (8) as paragraphs (2) through (7), re25 spectively, and 
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1 (C) by redesignating paragraphs (10), 

2 (11), and (12) as paragraphs (8), (9), and (10), 

3 respectively. 

4 (4) Paragraph (3) of section 55(b) is amended 

5 by striking ‘‘In the case of taxable years beginning 

6 after December 31, 2000, rules similar to the rules 

7 of section 1(h)(2) shall apply for purposes of sub8 paragraphs (B) and (C).’’. 

9 (5) Paragraph (7) of section 57(a) is amended 

10 by striking the last sentence and by striking ‘‘42 

11 percent’’ and inserting ‘‘28 percent’’. 

12 (c) EFFECTIVE DATES.—

13 (1) IN GENERAL.—Except as otherwise pro14 vided by this subsection, the amendments made by 

15 this section shall apply to taxable years beginning 

16 after December 31, 2002. 

17 (2) WITHHOLDING.—The amendment made by 

18 subsection (b)(1)(B) shall apply to amounts paid 

19 after the date of the enactment of this Act. 

20 SEC. 3. INCREASE ON AMOUNT OF CAPITAL LOSSES WHICH 

21 MAY OFFSET ORDINARY INCOME. 

22 (a) IN GENERAL.—Paragraph (1) of section 1211(b) 

23 (relating to limitation on capital losses for taxpayers other 

24 than corporations) is amended by striking ‘‘$3,000 

($1,500’’ and inserting ‘‘$10,000 (1 25 ⁄2 such amount’’. 
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1 (b) ADJUSTMENT FOR INFLATION.—Section 1211 of 

2 such Code (relating to limitation on capital losses) is 

3 amended by adding at the end the following new sub4 section: 

5 ‘‘(c) ADJUSTMENT FOR INFLATION.—

6 ‘‘(1) IN GENERAL.—In the case of any taxable 

7 year beginning in a calendar year after 2003, the 

8 $10,000 amount contained in subsection (b)(1) shall 

9 each be increased by an amount equal to—

10 ‘‘(A) such amount, multiplied by 

11 ‘‘(B) the cost-of-living adjustment deter12 mined under section 1(f)(3) for the calendar 

13 year in which the taxable year begins by sub14 stituting ‘calendar year 2002’ for ‘calendar year 

15 1992’ in subparagraph (B) thereof. 

16 ‘‘(2) ROUNDING.—If any increase determined 

17 under paragraph (1) is not a multiple of $50, such 

18 increase shall be rounded to the next highest mul19 tiple of $50.’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to taxable years beginning after 

22 December 31, 2002.

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