I
106TH CONGRESS
1ST SESSION
H. R. 3
To amend the Internal Revenue Code of 1986 to reduce individual income
tax rates by 10 percent.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 3, 1999
Mr. KASICH (for himself, Mr. ARMEY, Mr. DELAY, Mr. COX, Mr. BACHUS,
Mr. BAKER, Mr. BLUNT, Mr. BOEHNER, Mr. CHABOT, Mr. DOOLITTLE,
Ms. DUNN, Mr. DICKEY, Mr. EHRLICH, Mr. EWING, Mr. FOLEY, Mrs.
FOWLER, 
Ms. 
GRANGER, 
Mr. 
HASTINGS
of 
Washington, 
Mr.
HOSTETTLER, Mr. ISTOOK, Mr. KOLBE, Mr. MANZULLO, Mr. GARY MIL-
LER of California, Mrs. MYRICK, Mr. NETHERCUTT, Mr. PACKARD, Mr.
PAUL, Mr. PITTS, Mr. ROYCE, Mr. SALMON, Mr. SESSIONS, Mr.
SUNUNU, Mr. TALENT, Mr. TANCREDO, and Mr. TAYLOR of North Caro-
lina) 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
individual income tax rates by 10 percent.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘10 Percent Tax Cut Act’’.
(b) SECTION 15 NOT TO APPLY.—No amendment
made by section 2 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. 10 PERCENT REDUCTION IN INDIVIDUAL INCOME
TAX RATES.
(a) GENERAL RULE.—Section 1 of the Internal Reve-
nue Code of 1986 (relating to tax imposed) is amended
by striking subsections (a) through (e) 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 $43,050 ..........................
13.5% of taxable income.
Over 
$43,050 
but 
not 
over
$104,050.
$5,811.75, plus 25.2% of the excess
over $43,050.
Over 
$104,050 
but 
not 
over
$158,550.
$21,183.75, plus 27.9% of the excess
over $104,050.
Over 
$158,550 
but 
not 
over
$283,150.
$36,389.25, plus 32.4% of the excess
over $158,550.
Over $283,150 ...............................
$76,759.65, plus 35.64% of the ex-
cess over $283,150.
‘‘(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 $34,550 ..........................
13.5% of taxable income.
Over 
$34,550 
but 
not 
over
$89,150.
$4,664.25, plus 25.2% of the excess
over $34,550.
Over 
$89,150 
but 
not 
over
$144,400.
$18,423.45, plus 27.9% of the excess
over $89,150.
Over 
$144,400 
but 
not 
over
$283,150.
$33,838.20, plus 32.4% of the excess
over $144,400.
Over $283,150 ...............................
$78,793.20, plus 35.64% of the ex-
cess over $283,150.
‘‘(c) UNMARRIED INDIVIDUALS (OTHER THAN SUR-
VIVING SPOUSES AND HEADS OF HOUSEHOLDS).—There
is hereby imposed on the taxable income of every individ-
ual (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 $25,750 ..........................
13.5% of taxable income.
Over 
$25,750 
but 
not 
over
$62,450.
$3,476.25, plus 25.2% of the excess
over $25,750.
Over 
$62,450 
but 
not 
over
$130,250.
$12,724.65, plus 27.9% of the excess
over $62,450.
Over 
$130,250 
but 
not 
over
$283,150.
$31,640.85, plus 32.4% of the excess
over $130,250.
Over $283,150 ...............................
$81,180.45, plus 35.64% of the ex-
cess over $283,150.
‘‘(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 $21,525 ..........................
13.5% of taxable income.
Over 
$21,525 
but 
not 
over
$52,025.
$2,905.87, plus 25.2% of the excess
over $21,525.
Over 
$52,025 
but 
not 
over
$79,275.
$10,591.87, plus 27.9% of the excess
over $52,025.
Over 
$79,275 
but 
not 
over
$141,575.
$18,194.62, plus 32.4% of the excess
over $79,275.
Over $141,575 ...............................
$38,379.82, plus 35.64% of the ex-
cess over $141,575
‘‘(e) ESTATES AND TRUSTS.—There is hereby im-
posed on the taxable income of—
‘‘(1) every estate, and
‘‘(2) every trust,
taxable under this subsection a tax determined in accord-
ance with the following table:
‘‘If taxable income is:
The tax is:
Not over $1,750 ............................
13.5% of taxable income.
Over $1,750 but not over $4,050 ..
$236.25, plus 25.2% of the excess
over $1,750.
Over $4,050 but not over $6,200 ..
$815.85, plus 27.9% of the excess
over $4,050.
Over $6,200 but not over $8,450 ..
$1,415.70, plus 32.4% of the excess
over $6,200.
Over $8,450 ...................................
$2,144.70, plus 35.64% of the excess
over $8,450.’’
(b) INFLATION ADJUSTMENT CONFORMING AMEND-
MENTS.—
(1) Subsection (f) of section 1 of the Internal
Revenue Code of 1986 is amended—
(A) by striking ‘‘1993’’ in paragraph (1)
and inserting ‘‘1999’’,
(B) by striking ‘‘1992’’ in paragraph
(3)(B) and inserting ‘‘1998’’, and
(C) by striking paragraph (7).
(2) The following provisions of such Code are
each amended by striking ‘‘1992’’ and inserting
‘‘1998’’ each place it appears:
(A) Section 25A(h).
(B) Section 32(j)(1)(B).
(C) Section 41(e)(5)(C).
(D) Section 59(j)(2)(B).
(E) Section 63(c)(4)(B).
(F) Section 68(b)(2)(B).
(G) Section 135(b)(2)(B)(ii).
(H) Section 151(d)(4).
(I) Section 220(g)(2).
(J) Section 221(g)(1)(B).
(K) Section 512(d)(2)(B).
(L) Section 513(h)(2)(C)(ii).
(M) Section 685(c)(3)(B).
(N) Section 877(a)(2).
(O) Section 911(b)(2)(D)(ii)(II).
(P) Section 2032A(a)(3)(B).
(Q) Section 2503(b)(2)(B).
(R) Section 2631(c)(1)(B).
(S) Section 4001(e)(1)(B).
(T) Section 4261(e)(4)(A)(ii).
(U) Section 6039F(d).
(V) Section 6323(i)(4)(B).
(W) Section 6601(j)(3)(B).
(X) Section 7430(c)(1).
(3) Subclause (II) of section 42(h)(6)(G)(i) of
such Code is amended by striking ‘‘1987’’ and in-
serting ‘‘1998’’.
(c) ADDITIONAL CONFORMING AMENDMENTS.—
(1) Section 1(g)(7)(B)(ii)(II) of the Internal
Revenue Code of 1986 is amended by striking ‘‘15
percent’’ and inserting ‘‘13.5 percent’’.
(2) Section 1(h) of such Code is amended—
(A) by striking ‘‘28 percent’’ both places it
appears 
in 
paragraphs 
(1)(A)(ii)(I) 
and
(1)(B)(i) and inserting ‘‘25.2 percent’’, and
(B) by striking paragraph (13).
(3) Section 531 of such Code is amended by
striking ‘‘39.6 percent’’ and inserting ‘‘35.64 per-
cent’’.
(4) Section 541 of such Code is amended by
striking ‘‘39.6 percent’’ and inserting ‘‘35.64 per-
cent’’.
(5) Section 3402(p)(1)(B) of such Code is
amended by striking ‘‘7, 15, 28, or 31 percent’’ and
inserting ‘‘7, 13.5, 25.2 or 27.9 percent’’.
(6) Section 3402(p)(2) of such Code is amend-
ed by striking ‘‘15 percent’’ and inserting ‘‘13.5 per-
cent’’.
(7) Section 3402(q)(1) of such Code is amend-
ed by striking ‘‘28 percent’’ and inserting ‘‘25.2 per-
cent’’.
(8) Section 3402(r)(3) of such Code is amended
by striking ‘‘31 percent’’ and inserting ‘‘27.9 per-
cent’’.
(9) Section 3406(a)(1) of such Code is amended
by striking ‘‘31 percent’’ and inserting ‘‘27.9 per-
cent’’.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to taxable years beginning after Decem-
ber 31, 1999.
(2) AMENDMENTS
TO
WITHHOLDING
PROVI-
SIONS.—The amendments made by paragraphs (5),
(6), (7), (8), and (9) of subsection (c) shall apply to
amounts paid after December 31, 1999.
Æ