to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
(c) SECTION 15 NOT TO APPLY.—No amendment
made by this Act shall be treated as a change in a rate
of tax for purposes of section 15 of the Internal Revenue
Code of 1986.
SEC. 2. REDUCTION IN MARGINAL INCOME TAX RATES FOR
INDIVIDUALS.
(a) RATES FOR 2002.—Section 1 (relating to tax im-
posed) is amended by striking subsections (a) through (d)
and inserting the following:
‘‘(a) MARRIED INDIVIDUALS FILING JOINT RETURNS
AND SURVIVING SPOUSES.—There is hereby imposed on
the taxable income of—
‘‘(1) every married individual (as defined in sec-
tion 7703) who makes a single return jointly with
his spouse under section 6013, and
‘‘(2) every surviving spouse (as defined in sec-
tion 2(a)),
a tax determined in accordance with the following table:
‘‘If taxable income is:
The tax is:
Not over $12,000 ..........................
14% of taxable income.
Over 
$12,000 
but 
not 
over
$45,200.
$1,680, plus 15% of the excess over
$12,000.
Over 
$45,200 
but 
not 
over
$109,250.
$6,660, plus 27% of the excess over
$45,200.
Over 
$109,250 
but 
not 
over
$166,450.
$23,953.50, plus 30% of the excess
over $109,250.
‘‘If taxable income is:
The tax is:
Over 
$166,450 
but 
not 
over
$297,300.
$41,113.50, plus 35% of the excess
over $166,450.
Over $297,300 ...............................
$86,911, plus 38% of the excess over
$297,300.
‘‘(b) HEADS OF HOUSEHOLDS.—There is hereby im-
posed on the taxable income of every head of a household
(as defined in section 2(b)) a tax determined in accordance
with the following table:
‘‘If taxable income is:
The tax is:
Not over $10,000 ..........................
14% of taxable income.
Over 
$10,000 
but 
not 
over
$36,250.
$1,400, plus 15% of the excess over
$10,000.
Over 
$36,250 
but 
not 
over
$93,600.
$5,337.50, plus 27% of the excess
over $36,250.
Over 
$93,600 
but 
not 
over
$151,600.
$20,822, plus 30% of the excess over
$93,600.
Over 
$151,600 
but 
not 
over
$297,300.
$38,222, plus 35% of the excess over
$151,600.
Over $297,300 ...............................
$89,217, plus 38% of the excess over
$297,300.
‘‘(c) UNMARRIED INDIVIDUALS (OTHER THAN SUR-
VIVING SPOUSES AND HEADS OF HOUSEHOLDS).—There
is hereby imposed on the taxable income of every indi-
vidual (other than a surviving spouse as defined in section
2(a) or the head of a household as defined in section 2(b))
who is not a married individual (as defined in section
7703) a tax determined in accordance with the following
table:
‘‘If taxable income is:
The tax is:
Not over $6,000 ............................
14% of taxable income.
Over $6,000 but not over $27,050
$840, plus 15% of the excess over
$6,000.
Over 
$27,050 
but 
not 
over
$65,550.
$3,997.50, plus 27% of the excess
over $27,050.
Over 
$65,550 
but 
not 
over
$136,750.
$14,362.50, plus 30% of the excess
over $65,550.
Over 
$136,750 
but 
not 
over
$297,300.
$35,752.50, plus 35% of the excess
over $136,750.
‘‘If taxable income is:
The tax is:
Over $297,300 ...............................
$91,945, plus 38% of the excess over
$297,300.
‘‘(d) MARRIED INDIVIDUALS FILING SEPARATE RE-
TURNS.—There is hereby imposed on the taxable income
of every married individual (as defined in section 7703)
who does not make a single return jointly with his spouse
under section 6013, a tax determined in accordance with
the following table:
‘‘If taxable income is:
The tax is:
Not over $6,000 ............................
14% of taxable income.
Over $6,000 but not over $22,600
$840, plus 15% of the excess over
$6,000.
Over 
$22,600 
but 
not 
over
$54,625.
$3,330, plus 27% of the excess over
$22,600.
Over 
$54,625 
but 
not 
over
$83,225.
$11,976.75, plus 30% of the excess
over $54,625.
Over 
$83,225 
but 
not 
over
$148,650.
$20,556.75, plus 35% of the excess
over $83,225.
Over $148,650 ...............................
$43,455.50, plus 38% of the excess
over $148,650.’’.
(b) PHASEIN OF RATE REDUCTIONS.—Section 1 is
amended by adding at the end the following new sub-
section:
‘‘(i) PHASEIN OF 2006 RATES OF 10, 15, 25, AND
33 PERCENT.—
‘‘(1) IN GENERAL.—In the case of taxable years
beginning in a calendar year after 2002, the tax
rates determined under subsection (a), (b), (c), or
(d) shall be the tax rates imposed by such subsection
in taxable years beginning in calendar year 2002, re-
duced—
‘‘(A) in the case of the 14 percent rate, by
1 percentage point in each taxable year begin-
ning in a calendar year after 2002 and before
2007,
‘‘(B) in the case of the 27 and 35 percent
rates, by 1 percentage point in taxable years be-
ginning in calendar year 2004, and by an addi-
tional 1 percentage point in taxable years begin-
ning in calendar year 2006, and
‘‘(C) in the case of the 30 and 38 percent
rate, by 1 percentage point in each taxable year
beginning in a calendar year after 2002 and be-
fore 2006, and by an additional 2 percentage
points in taxable years beginning in calendar
year 2006.
‘‘(2) ADJUSTMENT OF TABLES.—The Secretary
shall adjust the tables prescribed under subsection
(f) to carry out the reductions under this sub-
section.’’.
(c) INFLATION ADJUSTMENT TO APPLY IN DETER-
MINING RATES FOR 2002.—Subsection (f) of section 1 is
amended—
(1) by striking ‘‘1993’’ in paragraph (1) and in-
serting ‘‘2001’’,
(2) by striking ‘‘1992’’ in paragraph (3)(B) and
inserting ‘‘2000’’, and
(3) by striking paragraph (7) and inserting the
following new paragraph:
‘‘(7) SPECIAL RULE FOR CERTAIN BRACKETS.—
‘‘(A) CALENDAR
YEARS
2002
THROUGH
2006.—In prescribing the tables under para-
graph (1) which apply with respect to taxable
years beginning in calendar years after 2001
and before 2007, the Secretary shall make no
adjustment to the dollar amounts at which the
first rate bracket begins or at which the second
rate bracket begins under any table contained
in subsection (a), (b), (c), or (d).
‘‘(B) LATER CALENDAR YEARS.—In pre-
scribing the tables under paragraph (1) which
apply with respect to taxable years beginning in
a calendar year after 2006, the cost-of-living
adjustment used in making adjustments to the
dollar amounts referred to in subparagraph (A)
shall be determined under paragraph (3) by
substituting ‘2005’ for ‘2000’.’’.
(d) CONFORMING AMENDMENTS.—