I 
112TH CONGRESS 
1ST SESSION H. R. 1074 
To amend the Internal Revenue Code of 1986 to reduce the corporate income 
tax rate to 10 percent and to lower the rate of tax on capital gains 
and dividends to 10 percent. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 14, 2011 
Mr. TIPTON 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 reduce 
the corporate income tax rate to 10 percent and to 
lower the rate of tax on capital gains and dividends 
to 10 percent. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CORPORATE INCOME TAX RATE REDUCED TO 
10 PERCENT. 
(a) IN GENERAL.—Paragraph (1) of section 11(b) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘shall be the sum of—’’ and all that follows through the 
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period at the end and inserting ‘‘shall be 10 percent of 
taxable income.’’. 
(b) PERSONAL
SERVICE
CORPORATIONS.—Para-
graph (2) of section 11(b) of such Code is amended by 
striking ‘‘35 percent’’ and inserting ‘‘10 percent’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 2. TEN PERCENT CAPITAL GAINS RATE FOR INDIVID-
UALS AND CORPORATIONS. 
(a) TEN PERCENT CAPITAL GAINS RATE FOR INDI-
VIDUALS.— 
(1) IN GENERAL.—Subparagraph (C) of section 
1(h)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘15 percent’’ and inserting ‘‘10 
percent’’. 
(2) ALTERNATIVE
MINIMUM
TAX.—Subpara-
graph (C) of section 55(b)(3) of such Code is 
amended by striking ‘‘15 percent’’ and inserting ‘‘10 
percent’’. 
(3) REPEAL OF SUNSET OF REDUCTION IN CAP-
ITAL GAINS RATES FOR INDIVIDUALS.—Section 303 
of the Jobs and Growth Tax Relief Reconciliation 
Act of 2003 shall not apply to section 301 of such 
Act. 
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(b) TEN PERCENT CAPITAL GAINS RATE FOR COR-
PORATIONS.— 
(1) IN
GENERAL.—Subsection (a) of section 
1201 of such Code is amended by striking ‘‘35 per-
cent’’ each place it appears and inserting ‘‘10 per-
cent’’. 
(2) 
ALTERNATIVE
MINIMUM
TAX.—Section 
55(b) of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(4) MAXIMUM RATE OF TAX ON NET CAPITAL 
GAIN OF CORPORATIONS.—The amount determined 
under paragraph (1)(B)(i) shall not exceed the sum 
of— 
‘‘(A) the amount determined under such 
paragraph computed at the rates and in the 
same manner as if this paragraph had not been 
enacted on the taxable excess reduced by the 
net capital gain, plus 
‘‘(B) the amount determined under section 
1201.’’. 
(3) TECHNICAL AMENDMENTS.— 
(A) Section 1445(e)(1) of such Code is 
amended by striking ‘‘35 percent (or, to the ex-
tent provided in regulations, 15 percent)’’ and 
inserting ‘‘10 percent’’. 
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(B) Section 1445(e)(2) of such Code is 
amended by striking ‘‘35 percent’’ and inserting 
‘‘10 percent’’. 
(C) Section 7518(g)(6)(A) of such Code is 
amended by striking ‘‘15 percent (34 percent in 
the case of a corporation)’’ and inserting ‘‘10 
percent’’. 
(D) Section 607(h)(6)(A) of the Merchant 
Marine Act, 1936 is amended by striking ‘‘15 
percent (34 percent in the case of a corpora-
tion)’’ and inserting ‘‘10 percent’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years ending after the date of 
the enactment of this Act. 
(2) WITHHOLDING.—The amendments made by 
subparagraphs (A) and (B) of subsection (b)(3) 
shall take apply to dispositions and distributions 
after the date of the enactment of this Act. 
Æ 
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