I
107TH CONGRESS
1ST SESSION
H. R. 942
To amend the Internal Revenue Code of 1986 to reduce individual income
tax rates and increase the standard deduction.
IN THE HOUSE OF REPRESENTATIVES
MARCH 8, 2001
Mr. COLLINS 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 and increase the standard
deduction.
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
‘‘Individual Income Tax Rate Reduction Act of 2001’’.
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment
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 such Code.
SEC. 2. REDUCTION IN INDIVIDUAL INCOME TAX RATES.
(a) RATES FOR 2001.—Section 1 (relating to tax im-
posed) 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 every married individual (as defined
in section 7703) who makes a single return jointly with
his spouse under section 6013, and every surviving spouse
(as defined in section 2(a)), a tax determined in accord-
ance with the following table:
‘‘If taxable income is:
The tax is:
Not over $45,200 ..........................
12% of taxable income.
Over 
$45,200 
but 
not 
over
$109,250.
$5,424, plus 25% of the excess over
$45,200
Over 
$109,250 
but 
not 
over
$166,500.
$21,436.50, plus 28% of the excess
over $109,250
Over 
$166,500 
but 
not 
over
$297,350.
$37,466.50, plus 35.5% of the excess
over $166,500
Over $297,350................ ...............
$83,918.25, plus 38.2% of the excess
over $297,350
‘‘(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 $36,250 ..........................
12% of taxable income.
Over 
$36,250 
but 
not 
over
$93,650.
$4,350, plus 25% of the excess over
$36,250
Over 
$93,650 
but 
not 
over
$151,650.
$18,700, plus 28% of the excess over
$93,650
Over 
$151,650 
but 
not 
over
$297,350.
$34,940, plus 35.5% of the excess
over $151,650
Over $297,350................ ...............
$86,663.50, plus 38.2% of the excess
over $297,350
‘‘(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 $27,050 ..........................
12% of taxable income.
Over 
$27,050 
but 
not 
over
$65,550.
$3,246, plus 25% of the excess over
$27,050
Over 
$65,550 
but 
not 
over
$136,750.
$12,871, plus 28% of the excess over
$65,550
Over 
$136,750 
but 
not 
over
$297,350.
$32,807, plus 35.5% of the excess
over $136,750
Over $297,350................ ...............
$89,820, plus 38.2% of the excess
over $297,350
‘‘(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 $22,600 ..........................
12% of taxable income.
Over 
$22,600 
but 
not 
over
$54,625.
$2,712, plus 25% of the excess over
$22,600
Over 
$54,625 
but 
not 
over
$83,250.
$10,718.25, plus 28% of the excess
over $54,625
Over 
$83,250 
but 
not 
over
$148,675.
$18,733.25, plus 35.5% of the excess
over $83,250
Over $148,675................ ...............
$41,959.12, plus 38.2% of the excess
over $148,675
‘‘(e) ESTATES AND TRUSTS.—There is hereby im-
posed on the taxable income of every estate, and every
trust, taxable under this subsection a tax determined in
accordance with the following table:
‘‘If taxable income is:
The tax is:
Not over $1,800 ............................
12% of taxable income.
Over $1,800 but not over $4,250 ..
$216, plus 25% of the excess over
$1,800
Over $4,250 but not over $6,500 ..
$828.50, plus 28% of the excess over
$4,250
Over $6,500 but not over $8,900 ..
$1,458.50, plus 35.5% of the excess
over $6,500
Over $8,900................ ...................
$2,310.50, plus 38.2% of the excess
over $8,900’’
(b) RATE REDUCTIONS AFTER 2001.—Section 1 is
amended by adding at the end the following new sub-
section:
‘‘(i) RATE REDUCTIONS AFTER 2001.—
‘‘(1) IN GENERAL.—In the case of taxable years
beginning in a calendar year after 2001, the cor-
responding percentage specified for such calendar
year in the following table shall be substituted for
the otherwise applicable tax rate.
In the case of taxable years
beginning during calendar year:
The corresponding per-
centages shall
be substituted for the fol-
lowing percentages:
35.5%
38.2%
2002 ........................................................................
35.0%
37.0%
2003 ........................................................................
34.5%
35.8%
2004 ........................................................................
34.0%
34.6%
2005 ........................................................................
33.5%
33.5%
2006 and thereafter ...............................................
33.0%
33.0%
‘‘(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 AFTER
2001.—Subsection (f) of section 1 is amended—
(1) by striking ‘‘1993’’ in paragraph (1) and in-
serting ‘‘2001’’, and
(2) by striking ‘‘1992’’ in paragraph (3)(B) and
inserting ‘‘2000’’.
(d) CONFORMING AMENDMENTS.—
(1) The following provisions are each amended
by striking ‘‘1992’’ and inserting ‘‘2000’’ each place
it appears:
(A) Section 32(j)(1)(B).
(B) Section 41(e)(5)(C).
(C) Section 42(h)(3)(H)(i)(II).
(D) Section 59(j)(2)(B).
(E) Section 63(c)(4)(B).
(F) Section 68(b)(2)(B).
(G) Section 132(f)(6)(A)(ii).
(H) Section 135(b)(2)(B)(ii).
(I) Section 146(d)(2)(B).
(J) Section 151(d)(4).
(K) Section 220(g)(2).
(L) Section 221(g)(1)(B).
(M) Section 512(d)(2)(B).
(N) Section 513(h)(2)(C)(ii).
(O) Section 685(c)(3)(B).
(P) Section 877(a)(2).
(Q) Section 911(b)(2)(D)(ii)(II).
(R) Section 2032A(a)(3)(B).
(S) Section 2503(b)(2)(B).
(T) Section 2631(c)(2).
(U) Section 4001(e)(1)(B).
(V) Section 4261(e)(4)(A)(ii).
(W) Section 6039F(d).
(X) Section 6323(i)(4)(B).
(Y) Section 6334(g)(1)(B).
(Z) Section 6601(j)(3)(B).
(AA) Section 7430(c)(1).
(2) 
Sections 
25A(h)(1)(A)(ii) 
and
25A(h)(2)(A)(ii) are each amended by striking ‘‘be-
gins,’’ and all that follows through ‘‘thereof’’.
(3) Subclause (II) of section 42(h)(6)(G)(i) is
amended by striking ‘‘1987’’ and inserting ‘‘2000’’.
(e) ADDITIONAL CONFORMING AMENDMENTS.—
(1) Subparagraph (B) of section 1(g)(7) is
amended—
(A) by striking ‘‘15 percent’’ in clause
(ii)(II) and inserting ‘‘the first bracket percent-
age’’, and
(B) by adding at the end the following
flush sentence:
‘‘For purposes of clause (ii), the first bracket
percentage is the percentage applicable to the
lowest income bracket in the table under sub-
section (c).’’
(2) Section 1(h) is amended—
(A) by striking ‘‘28 percent’’ both places it
appears 
in 
paragraphs 
(1)(A)(ii)(I) 
and
(1)(B)(i) and inserting ‘‘25 percent’’, and
(B) by striking paragraph (13).
(3) Section 15 is amended by adding at the end
the following new subsection:
‘‘(f) RATE REDUCTIONS ENACTED BY INDIVIDUAL
INCOME TAX RATE REDUCTION ACT OF 2001.—This sec-
tion shall not apply to any change in rates under sub-
section (i) of section 1 (relating to rate reductions after
2000).’’
(4) Section 531 is amended by striking ‘‘equal
to’’ and all that follows and inserting ‘‘equal to the
product of the highest rate of tax under section 1(c)
and the accumulated taxable income.’’.
(5) Section 541 of such Code is amended by
striking ‘‘equal to’’ and all that follows and inserting
‘‘equal to the product of the highest rate of tax
under section 1(c) and the undistributed personal
holding company income.’’.
(6) Section 3402(p)(1)(B) is amended by strik-
ing ‘‘7, 15, 28, or 31 percent’’ and inserting ‘‘7 per-
cent, any percentage applicable to any of the 3 low-
est income brackets in the table under section
1(c),’’.
(7) Section 3402(p)(2) is amended by striking
‘‘equal to 15 percent of such payment’’ and inserting
‘‘equal to the product of the lowest rate of tax under
section 1(c) and such payment’’.
(8) Section 3402(q)(1) is amended by striking
‘‘equal to 28 percent of such payment’’ and inserting
‘‘equal to the product of the third to the lowest rate
of tax under section 1(c) and such payment’’.
(9) Section 3402(r)(3) is amended by striking
‘‘31 percent’’ and inserting ‘‘the third to the lowest
rate of tax under section 1(c)’’.
(10) Section 3406(a)(1) is amended by striking
‘‘equal to 31 percent of such payment’’ and inserting
‘‘equal to the product of the third to the lowest rate
of tax under section 1(c) and such payment’’.
(11) Section 13273 of the Revenue Reconcili-
ation Act of 1993 is amended by striking ‘‘28 per-
cent’’ and inserting ‘‘the third to the lowest rate of
tax under section 1(c) of the Internal Revenue Code
of 1986’’.
(f) 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, 2000.
(2) AMENDMENTS
TO
WITHHOLDING
PROVI-
SIONS.—The amendments made by paragraphs (6),
(7), (8), (9), (10), and (11) of subsection (e) shall
apply to amounts paid after the date of the enact-
ment of this Act.