I
107TH CONGRESS
1ST SESSION
H. R. 2999
To amend the Internal Revenue Code of 1986 to modify the highest marginal
income tax rates and to increase the estate tax deduction for family-
owned business interests, to repeal certain sections of the Economic
Growth and Tax Relief Reconciliation Act of 2001 related to personal
exemptions, itemized deductions, and the estate tax, to establish a legisla-
tive task force to determine when and whether certain critical national
priorities have been accomplished, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 2, 2001
Ms. SCHAKOWSKY (for herself, Ms. LEE, Mr. SANDERS, Mr. LAFALCE, Ms.
WOOLSEY, Mr. WAXMAN, Ms. SOLIS, Mr. DAVIS of Illinois, Mr. JACKSON
of Illinois, Mr. OWENS, Mr. HINCHEY, Mr. RUSH, Mr. KUCINICH, and
Mrs. JONES of Ohio) introduced the following bill; which was referred to
the Committee on Ways and Means, and in addition to the Committee
on Rules, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to modify
the highest marginal income tax rates and to increase
the estate tax deduction for family-owned business inter-
ests, to repeal certain sections of the Economic Growth
and Tax Relief Reconciliation Act of 2001 related to
personal exemptions, itemized deductions, and the estate
tax, to establish a legislative task force to determine
when and whether certain critical national priorities have
been accomplished, and for other purposes.
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 ‘‘First Things First
Act’’.
SEC. 2. PURPOSE.
The purpose of this Act is to delay the implementa-
tion of certain amendments to the Internal Revenue Code
of 1986 until a legislative task force has certified the
achievement of each of the following critical national prior-
ities:
(1) The provision of aid and relief to persons
physically or economically injured as a result of the
terrorist acts against the United States that oc-
curred on September 11, 2001.
(2) The security of the Social Security and
Medicare trust funds.
(3) The provision of a comprehensive prescrip-
tion drug benefit to Medicare beneficiaries.
(4) The provision of Federal funding for a
major school modernization effort and the hiring of
100,000 teachers.
(5) A significant reduction since 2001 in the
number of United States citizens who face worst
case housing needs.
SEC. 3. MODIFICATION OF THE HIGHEST MARGINAL IN-
COME TAX RATES.
(a) IN GENERAL.—Paragraph (2) of section 1(i) of
the Internal Revenue Code of 1986 (relating to reductions
in rates after June 30, 2001) is amended by striking the
table and inserting the following:
‘‘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%
30.5%
35.5%
39.6%
2004 and 2005 ...................................................
26.0%
30.5%
35.5%
39.6%
2006 and thereafter ............................................
25.0%
30.5%
35.5%
39.6%’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to taxable years beginning after
December 31, 2000.
SEC. 4. REPEAL OF PHASEOUT OF OVERALL LIMITATION
ON ITEMIZED DEDUCTIONS AND OF TERMI-
NATION OF PHASEOUT OF PERSONAL EXEMP-
TIONS.
Sections 102 and 103 of the Economic Growth and
Tax Relief Reconciliation Act of 2001 (and the amend-
ments made by such sections) are hereby repealed, and
the Internal Revenue Code of 1986 shall be applied and
administered as if such sections (and amendments) had
never been enacted.
SEC. 5. REPEAL OF THE TERMINATION OF THE ESTATE
AND 
GENERATION-SKIPPING 
TRANSFER
TAXES AND STEP-UP IN BASIS AT DEATH, AND
RELATED REPEALS.
Subtitles A, B, C, D, and E of title V of the Economic
Growth and Tax Relief Reconciliation Act of 2001 (and
the amendments made by such subtitles) are hereby re-
pealed, and the Internal Revenue Code of 1986 shall be
applied and administered as if such subtitles (and amend-
ments) had never been enacted.
SEC. 6. INCREASE IN THE ESTATE TAX DEDUCTION FOR
FAMILY-OWNED BUSINESS INTEREST.
(a) IN GENERAL.—Paragraph (2) of section 2057(a)
of the Internal Revenue Code of 1986 (relating to max-
imum deduction) is amended by striking ‘‘$675,000’’ and
inserting ‘‘$4,000,000’’.
(b) CONFORMING AMENDMENTS.—Subparagraph (B)
of section 2057(a)(3) of the Internal Revenue Code of
1986 (relating to coordination with unified credit) is
amended by striking ‘‘$675,000’’ each place it appears in
the text and heading and inserting ‘‘$4,000,000’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to estates of decedents dying after
the date of the enactment of this Act.
SEC. 7. NATIONAL PRIORITIES ASSESSMENT TASK FORCE.
(a) ESTABLISHMENT.—There is established in the
legislative branch a task force to be known as the ‘‘Na-
tional Priorities Assessment Task Force’’ (in this section
referred to as the ‘‘Task Force’’).
(b) DUTIES.—The Task Force shall determine when
and whether Congress has achieved each of the following:
(1) The provision of aid and relief to persons
physically or economically injured as a result of the
terrorist acts against the United States that oc-
curred on September 11, 2001.
(2) The security of the Social Security and
Medicare trust funds.
(3) The provision of a comprehensive prescrip-
tion drug benefit to Medicare beneficiaries.
(4) The provision of Federal funding for a
major school modernization effort and the hiring of
100,000 teachers.
(5) A significant reduction since 2001 in the
number of United States citizens who face worst
case housing needs.
(c) MEMBERSHIP.—The Task Force shall be com-
posed of 16 members as follows:
(1) The chairperson and the ranking minority
member of the Committee on the Budget of the
House of Representatives.
(2) The chairperson and the ranking minority
member of the Committee on Energy and Commerce
of the House of Representatives.
(3) The chairperson and the ranking minority
member of the Committee on Education and the
Workforce of the House of Representatives.
(4) The chairperson and the ranking minority
member of the Committee on Ways and Means of
the House of Representatives.
(5) The chairperson and the ranking minority
member of the Committee on the Budget of the Sen-
ate.
(6) The chairperson and the ranking minority
member of the Committee on Banking, Housing,
and Urban Affairs of the Senate.
(7) The chairperson and the ranking minority
member of the Committee on Health, Education,
Labor and Pensions of the Senate.
(8) The chairperson and the ranking minority
member of the Committee on Finance of the Senate.
(d) FINAL REPORT.—
(1) IN GENERAL.—The Task Force shall trans-
mit a final report to Congress not later than 30 days
after the date on which the Task Force makes the
determinations described in subsection (b). The final
report shall contain a detailed statement of the find-
ings and conclusions on which the determinations of
the Task Force under subsection (b) are based.
(2) REQUIRED
DETERMINATIONS.—The Task
Force shall not transmit a final report under para-
graph (1) until the Task Force has made the deter-
minations described in subsection (b).
(e) INTERIM REPORTS.—The Task Force may submit
to Congress interim reports as the Task Force considers
appropriate.
(f) ADMINISTRATION.—
(1) PAY.—Members of the Task Force shall
serve without pay.
(2) QUORUM.—9 members of the Task Force
shall constitute a quorum.
(3) CHAIRPERSON; VICE
CHAIRPERSON.—The
Chairperson and Vice Chairperson of the Task Force
shall be elected by the members.
(4) MEETINGS.—The Task Force shall meet at
the call of the Chairperson or a majority of its mem-
bers.
(g) POWERS OF THE TASK FORCE.—
(1) HEARINGS.—The Task Force may, for the
purpose of carrying out this section, hold hearings,
sit and act at times and places, take testimony, and
receive evidence as the Task Force considers appro-
priate.
(2) OBTAINING
OFFICIAL
DATA.—The Task
Force may secure directly from any department or
agency of the United States information necessary
to enable it to carry out this section. Upon request
of the Chairperson of the Task Force, the head of
that department or agency shall furnish that infor-
mation to the Task Force.
(h) FUNDING.—
(1) IN GENERAL.—No funds may be provided
to the Task Force.
(2) AVAILABILITY
OF
COMMITTEE
FUNDS.—
Notwithstanding paragraph (1), any committee de-
scribed in subsection (c) may make funds available
for the activities of a member of the Task Force to
carry out this section if such member of the Task
Force is also a member of such committee.
(i) TERMINATION.—The Task Force shall terminate
30 days after transmitting its final report under sub-
section (d).
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