I
107TH CONGRESS
2D SESSION
H. R. 3757
To freeze and repeal portions of the tax cut enacted in the Economic Growth
and Tax Relief Reconciliation Act of 2001 and to apply savings therefrom
to a comprehensive Medicare outpatient prescription drug benefit.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 13, 2002
Mr. WEXLER introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To freeze and repeal portions of the tax cut enacted in
the Economic Growth and Tax Relief Reconciliation Act
of 2001 and to apply savings therefrom to a comprehen-
sive Medicare outpatient prescription drug benefit.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Honor Thy Parents
Act of 2002’’.
SEC. 2. FREEZE AND REPEAL OF PORTIONS OF THE TAX
CUT ENACTED IN THE ECONOMIC GROWTH
AND TAX RELIEF RECONCILIATION ACT OF
2001.
(a) FREEZE IN REDUCTIONS OF TOP 3 INCOME TAX
RATES FOR INDIVIDUALS.—The table in paragraph (2) of
section 1(i) of the Internal Revenue Code of 1986 (relating
to reductions in rates after June 30, 2001) is amended
to read as follows:
‘‘In the case of taxable years
beginning during calendar year:
The corresponding percentages
shall be substituted for
the following percentages:
28%
31%
36%
39.6%
2001 ........................................................................
27.5%
30.5%
35.5%
39.1%
2002 and 2003 .......................................................
27.0%
30.0%
35.0%
38.6%
2004 and 2005 .......................................................
26.0%
30.0%
35.0%
38.6%
2006 and thereafter ................................................
25.0%
30.0%
35.0%
38.6%.’’.
(b) REPEAL OF MODIFICATIONS TO PHASEOUT OF
PERSONAL EXEMPTIONS AND OVERALL LIMITATION ON
ITEMIZED DEDUCTIONS.—Sections 102 and 103 of the
Economic Growth and Tax Relief Reconciliation Act of
2001 (and the amendments made by such sections) are
hereby repealed and the Internal Revenue Code of 1986
shall be applied and administered as if such sections had
never been enacted.
(c) REPEAL OF CERTAIN ESTATE, GIFT, AND GEN-
ERATION-SKIPPING TRANSFER TAX PROVISIONS.—
(1) IN GENERAL.—The following provisions of
title V of the Economic Growth and Tax Relief Rec-
onciliation Act of 2001 (and the amendments made
by such subtitle) are hereby repealed and the Inter-
nal Revenue Code of 1986 shall be applied and ad-
ministered as if such provisions had never been en-
acted:
(A) Subtitle A.
(B) Subsections (c), (d), (e), (f)(2), and
(f)(3) of section 511.
(C) Subsections (b)(2) and (e)(2) of sec-
tion 521.
(D) Subtitle E.
(2) INCREASE
IN
APPLICABLE
EXCLUSION
AMOUNT.—Subsection (c) of section 2010 of the In-
ternal Revenue Code of 1986 (relating to applicable
credit amount) is amended by striking the table and
inserting the following new table:
‘‘In the case of estates of decedents
The applicable
dying during:
exclusion amount is:
2002 and 2003 ......................................................
$1,000,000
2004 and 2005 ......................................................
$1,500,000
2006, 2007, and 2008 ...........................................
$2,000,000
2009 .......................................................................
$3,500,000
2010 and thereafter ..............................................
$4,000,000.’’.
(3) 
CONFORMING
AMENDMENT.—Section
521(e) of the Economic Growth and Tax Relief Rec-
onciliation Act of 2001 (as amended by paragraph
(1)) is further amended—
(A) in paragraph (1) by striking ‘‘para-
graphs (2) and (3)’’ and inserting ‘‘paragraph
(2)’’, and
(B) by redesignating paragraph (3) as
paragraph (2).
SEC. 3. TRANSFER OF SAVINGS TO MEDICARE PROGRAM
TO OFFSET COSTS OF PRESCRIPTION DRUG
BENEFIT.
(a) TRANSFER TO FEDERAL HOSPITAL INSURANCE
TRUST FUND.—Section 1817(a) of the Social Security
Act (42 U.S.C. 1395i(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(1),
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’, and
(3) by inserting after paragraph (2) the fol-
lowing new paragraph:
‘‘(3) amounts estimated by the Secretary of the
Treasury that would have been paid from the gen-
eral fund of the Treasury but for the amendments
and repeals made by section 2 of the Honor Thy
Parents Act of 2002.’’.
(b) ESTABLISHMENT OF SEPARATE ACCOUNT FOR
OUTPATIENT PRESCRIPTION DRUG BENEFIT.—Section
1817 of such Act (42 U.S.C. 1395i) is amended by adding
at the end the following new subsection:
‘‘(l) OUTPATIENT PRESCRIPTION DRUG ACCOUNT.—
‘‘(1) ESTABLISHMENT.—There is hereby estab-
lished in the Trust Fund an expenditure account to
be known as the ‘Outpatient Prescription Drug Ac-
count’.
‘‘(2) CREDITING
OF
FUNDS.—The Managing
Trustee shall credit to the Outpatient Prescription
Drug Account such amounts as may be deposited in
the Trust Fund pursuant to subsection (a)(3).
‘‘(3) USE OF FUNDS.—Funds credited to the
Outpatient Prescription Drug Account may only be
used to pay for outpatient prescription drugs fur-
nished under this title.’’.
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