I 

111TH CONGRESS 

1ST SESSION H. R. 301 

To amend the Internal Revenue Code of 1986 to prevent pending tax increases and to provide additional tax reductions to stimulate economic 

growth. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 8, 2009 

Mr. NEUGEBAUER 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 prevent 

pending tax increases and to provide additional tax reductions to stimulate economic growth. 

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 ‘‘Economic Growth 

5 Through Tax Stimulus Act of 2009’’. 

6 SEC. 2. EGTRRA, JGTRRA, AND CERTAIN OTHER TAX RE7 LIEF MADE PERMANENT. 

8 (a) ECONOMIC GROWTH AND TAX RELIEF REC9 ONCILIATION ACT OF 2001.—Title IX of the Economic 


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1 Growth and Tax Relief Reconciliation Act of 2001 is here2 by repealed. 

3 (b) INCOME TAX RATES ON DIVIDENDS AND NET

4 CAPITAL GAIN.—Section 303 of the Jobs and Growth Tax 

5 Relief Reconciliation Act of 2003 is hereby repealed. 

6 (c) DEDUCTION FOR STATE AND LOCAL SALES

7 TAXES.—Paragraph (5) of section 164(b) of the Internal 

8 Revenue Code of 1986 is amended by striking subpara9 graph (I). 

10 (d) DEDUCTION FOR TUITION AND RELATED EX11 PENSES.—Section 222 of such Code is amended by strik12 ing subsection (e). 

13 (e) INCREASED EXPENSING FOR SMALL BUSI14 NESS.— 

15 (1) DOLLAR LIMITATION.—Paragraph (1) of 

16 section 179(b) of such Code (relating to dollar limi17 tation) is amended by striking ‘‘$25,000 ($125,000 

18 in the case of taxable years beginning after 2006 

19 and before 2011)’’ and inserting ‘‘$125,000’’. 

20 (2) INCREASE IN QUALIFYING INVESTMENT AT

21 WHICH PHASEOUT BEGINS.—Paragraph (2) of sec22 tion 179(b) of such Code (relating to reduction in 

23 limitation) is amended by striking ‘‘$200,000 

24 ($500,000 in the case of taxable years beginning 


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1 after 2006 and before 2011)’’ and inserting 

2 ‘‘$500,000’’. 

3 (3) INFLATION ADJUSTMENTS.—Section 

4 179(b)(5)(A) of such Code (relating to inflation ad5 justments) is amended by striking ‘‘and before 

6 2011’’. 

7 (4) REVOCATION OF ELECTION.—Section 

8 179(c)(2) of such Code (relating to election irrev9 ocable) is amended by striking ‘‘and before 2011’’. 

10 (5) COMPUTER SOFTWARE.—Clause (ii) of sec11 tion 179(d)(1)(A) of such Code is amended by strik12 ing ‘‘and before 2011’’. 

13 (f) EFFECTIVE DATE.—The amendments made by 

14 this section shall take effect on the date of the enactment 

15 of this Act. 

16 SEC. 3. TEMPORARY REDUCTION IN INDIVIDUAL TAX 

17 RATES. 

18 (a) IN GENERAL.—Section 1 of the Internal Revenue 

19 Code of 1986 is amended by adding at the end the fol20 lowing new subsection: 

21 ‘‘(j) ECONOMIC STIMULUS RATE REDUCTIONS.—In 

22 the case of taxable years beginning in a calendar year 

23 after 2008 and before 2014— 


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1 ‘‘(1) the 10 percent and 15 percent rates of tax 

2 specified in subsection (i)(1) shall each be reduced 

3 by 5 percentage points, 

4 ‘‘(2) the last line of the table in subsection 

5 (i)(2) shall be applied by substituting— 

6 ‘‘(A) ‘20.0%’ for ‘25.0%’, 

7 ‘‘(B) ‘23.0%’ for ‘28.0%’, 

8 ‘‘(C) ‘25.0%’ for ‘33.0%’, and 

9 ‘‘(D) ‘25.0%’ for ‘35.0%’, and 

10 ‘‘(3) the adjustment of the tables prescribed 

11 under subsection (f) required by subsection (i)(3) 

12 shall be further adjusted to carry out this sub13 section.’’. 

14 (b) CONFORMING AMENDMENT.—Section 15 of such 

15 Code is amended by adding at the end the following new 

16 subsection: 

17 ‘‘(g) ECONOMIC STIMULUS RATE REDUCTIONS.— 

18 This section shall not apply to any change in rates under 

19 subsection (j) of section 1 (relating to economic stimulus 

20 rate reductions).’’. 

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

22 this section shall apply to taxable years beginning after 

23 December 31, 2008. 


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1 SEC. 4. REDUCTION IN CORPORATE INCOME TAX RATES. 

2 (a) IN GENERAL.—Section 11 of the Internal Rev3 enue Code of 1986 is amended by adding at the end the 

4 following new subsection: 

5 ‘‘(e) ECONOMIC STIMULUS RATE REDUCTIONS.—In 

6 the case of taxable years beginning in a calendar year 

7 after 2008 and before 2014— 

8 ‘‘(1) subsection (b)(1) shall be applied by dis9 regarding— 

10 ‘‘(A) ‘but does not exceed $75,000,’ in sub11 paragraph (B) thereof, 

12 ‘‘(B) subparagraphs (C) and (D) thereof, 

13 and 

14 ‘‘(C) the last 2 sentences, 

15 ‘‘(2) subsection (b)(2) shall be applied by sub16 stituting ‘25 percent’ for ‘35 percent’, and 

17 ‘‘(3) paragraphs (1) and (2) of section 1445(e) 

18 shall each be applied by substituting ‘25 percent’ for 

19 ‘35 percent’.’’. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2008. 

Æ 


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