406
and whether contributions to plans are deductible or ex-
cludable from gross income under chapter 1. 
‘‘(b) EFFECT
ON BUSINESS TAX DEDUCTIONS.—
Notwithstanding any provision to the contrary in this 
chapter, no provision of this chapter shall cause any 
amount to be treated as a cost of business purchase or 
to otherwise be deducted from gross receipts for purposes 
of computing the Simplified USA for Tax Businesses 
under chapter 2. 
‘‘(c) NO CREDITS.—Notwithstanding any provision 
to the contrary in this chapter, no provision of this chapter 
shall result in a tax credit against any tax imposed by 
chapter 1 or chapter 2. 
‘‘(d) EFFECT OF FAILURE TO COMPLY WITH PROVI-
SIONS.—A failure to comply with applicable provisions in 
this chapter could cause a plan to lose its exemption from 
the business tax and, thereby subject certain business ac-
tivities of the plan to the business tax and/or result in 
the constructive distribution of plan assets to plan partici-
pants.’’
(c) SECTION 408A SUSPERSEDED BY SECTION 30.—
Section 408A is repealed. 
SEC. 402. CLERICAL AMENDMENTS. 
(a) TABLE OF SECTIONS.—The table of sections for 
subpart A of part 1 of chapter 3 of the USA Tax Code
407
(formerly subchapter D of chapter 1 of the Code) is 
amended by inserting at the beginning of the table: 
‘‘CHAPTER 3—DEFERRED COMPENSATION, 
ETC.’’
(b) RENUMBERING OF CHAPTERS.—
(1) RENUMBER CHAPTERS.—Chapters 2 and 3 
of the Code are renumbered 4 and 5 respectively. 
Such renumbering shall be reflected in all tables and 
headings in the Code. 
(2) CROSS REFERENCES.—Any cross reference 
to chapter 2 or 3 of the Code contained in any provi-
sion of the Code that is not amended by this Act or 
in any other statute shall be treated as a reference 
to such chapter as renumbered by paragraph 1. 
TITLE V—REPEAL OF ESTATE 
AND GIFT TAXES 
SEC. 501. REPEAL OF GRATUITOUS TRANSFER TAXES. 
Subtitle B of the Code (relating to estate and gift 
taxes) is repealed. 
SEC 502. EFFECTIVE DATE. 
Section 501 shall apply to—
(1) gifts made after December 31, 2003; 
(2) the estates of decedents dying after Decem-
ber 31, 2003, and
408
(3) generating skipping transfers (within the 
meaning of subchapter B of chapter 13 as in effect 
before its repeal by this Act) occurring after Decem-
ber 31, 2003. 
TITLE VI—TECHNICAL AND AD-
MINISTRATIVE CHANGES: EF-
FECTIVE DATES 
SEC. 601. USA TAX CODE. 
(a) REDESIGNATION OF THE CODE.—The Internal 
Revenue Title enacted August 16, 1954, and as heretofore 
and hereby amended may be cited as the ‘‘USA Tax 
Code’’. The USA Tax Code, as hereinafter amended, may 
be cited as the ‘‘USA Tax Code, as amended’’. 
(b) REFERENCES IN LAWS, ETC.—Except where in-
appropriate, any reference in any law, Executive order, or 
other document—
(1) to the Internal Revenue Code of 1954 or 
the Internal Revenue Code of 1986 shall include a 
reference to the USA Tax Code or the USA Tax 
Code, as amended, 
(2) to the USA Tax Code or the USA Tax 
Code, as amended, shall include a reference, with re-
spect to periods before January 1, 2004, to the In-
ternal Revenue Code of 1954 or the Internal Rev-
enue Code of 1986.
409
SEC. 602. REVISIONS TO THE CODE. 
Not later than January 1, 2005, the Secretary shall 
submit to Congress proposed changes in the USA Tax 
Code that—
(1) eliminate cross-references to the Internal 
Revenue Code of 1986 (except with respect to tran-
sition issues) and insert provisions similar to the 
cross-referenced sections of the Internal Revenue 
Code of 1986, 
(2) revise subtitles C through J of the USA 
Tax Code to fully reflect the amendments to subtitle 
A of the Code made by this Act and the repeal of 
subtitle B, 
(3) include statutory definitions or rules in 
cases where the Secretary concludes that the defini-
tions or rules cannot or should not be addressed by 
regulation, 
(4) revise chapter 4 of the USA Tax Code (as 
renumbered by section 402 of this Act) (relating to 
the self-employment tax) to conform to changes 
made by this Act, and 
(5) revise chapter 5 of the USA Tax Code (as 
renumbered by section 402 of this Act) (relating to 
withholding on nonresident aliens and foreign cor-
porations) to reflect changes made in this Act.
410
SEC. 603. APPLICATION OF SUBTITLE F. 
Until such time as subtitle F of the Code is amended 
to reflect the amendments made by this Act, the provisions 
of subtitle F shall be treated as generally applying to the 
Simplified USA Tax—
(1) without regard to specific cross references, 
(2) without regard to provisions relating to 
partnerships, and 
(3) as if the business tax under chapter 2 were 
the corporate income tax and all business entities 
were corporations (except for purposes of collection, 
in which case the owners of noncorporate entities 
shall be obligated for taxes owned by the entities to 
the same extent as they would if the entity owed the 
tax prior to the amendment of the Code). 
SEC. 604. CLERICAL AMENDMENT. 
The portion of the table at the beginning of the Code 
listing subtitles and chapters of subtitle A is amended to 
read as follows:
‘‘Subtitle A. Simplified USA Tax. 
‘‘Subtitle B. [deleted]. 
‘‘Subtitle C. Employment taxes. 
‘‘Subtitle D. Miscellaneous excise taxes. 
‘‘Subtitle E. Alcohol, tobacco and certain other excise taxes. 
‘‘Subtitle F. Procedure and administration. 
‘‘Subtitle G. The Joint Committee on Taxation. 
‘‘Subtitle H. Financing of presidential election campaigns. 
‘‘Subtitle I. Trust Fund Code. 
‘‘Subtitle K. Group health plan requirements. 
‘‘Subtitle A—Simplified USA Tax 
‘‘Chapter 1. Simplified USA Tax for individuals. 
‘‘Chapter 2. Simplified USA Tax for businesses.
411
‘‘Chapter 3. Deferred compensation plans. 
‘‘Chapter 4. Tax on self-employment income. 
‘‘Chapter 5. Withholding of tax on nonresident aliens and foreign corpora-
tions.’’
SEC. 605. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as otherwise provided in 
this Act, the amendments made by this Act shall be effec-
tive on January 1, 2004, with respect to tax years begin-
ning on such date. 
(b) SPECIAL RULES FOR BUSINESSES WITH 52–53 
WEEK YEAR.—If a business uses a 52–53 week taxable 
year the amendments made by this Act shall apply to the 
business with respect to its tax year beginning in the last 
week in December except with respect to any transactions 
occurring during 2003 that were structured to take advan-
tage of the application of this Act to such business at a 
time when this Act did not apply to other businesses or 
to individuals.
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