‘‘(7) SPECIAL RULE FOR CERTAIN BRACKETS.—
In prescribing tables under paragraph (1) which
apply to taxable years beginning in a calendar year
after 1994, the cost-of-living adjustment used in
making adjustments to the dollar amounts at which
the 36 percent rate bracket begins or at which the
39.6 percent rate bracket begins shall be determined
under paragraph (3) by substituting ‘1993’ for
‘1992’.’’.
(2) EARNED INCOME CREDIT.—Paragraph (1)
of section 32(b) of such Code is amended—
(A) by striking subparagraphs (B) and
(C), and
(B) in subparagraph (A) by striking ‘‘(A)
IN GENERAL.—In the case of taxable years be-
ginning after 1995’’ and moving the table 2
ems to the left.
(3) ANNUITIES; CERTAIN
PROCEEDS
OF
EN-
DOWMENT AND LIFE INSURANCE CONTRACTS.—Sec-
tion 72 of such Code is amended—
(A) in subsection (c)(4) by striking ‘‘; ex-
cept that if such date was before January 1,
1954, then the annuity starting date is January
1, 1954’’, and
(B) in subsection (g)(3) by striking ‘‘Janu-
ary 1, 1954, or’’ and ‘‘, whichever is later’’.
(4) ACCIDENT AND HEALTH PLANS.—Section
105(f) of such Code is amended by striking ‘‘or (d)’’.
(5) FLEXIBLE
SPENDING
ARRANGEMENTS.—
Section 106(c)(1) of such Code is amended by strik-
ing ‘‘Effective on and after January 1, 1997, gross’’
and inserting ‘‘Gross’’.
(6) CERTAIN COMBAT ZONE COMPENSATION OF
MEMBERS OF THE ARMED FORCES.—Subsection (c)
of section 112 of such Code is amended—
(A) by striking ‘‘(after June 24, 1950)’’ in
paragraph (2), and
(B) striking ‘‘such zone;’’ and all that fol-
lows in paragraph (3) and inserting ‘‘such
zone.’’.
(7) PRINCIPAL RESIDENCE.—Section 121(b)(3)
of such Code is amended—
(A) by striking subparagraph (B), and
(B) in subparagraph (A) by striking ‘‘(A)
IN GENERAL.—’’ and moving the text 2 ems to
the left.
(8) CERTAIN REDUCED UNIFORMED SERVICES
RETIREMENT PAY.—Section 122(b)(1) of such Code
is amended by striking ‘‘after December 31, 1965,’’.
(9) MORTGAGE
REVENUE
BONDS
FOR
RESI-
DENCES
IN
FEDERAL
DISASTER
AREAS.—Section
143(k) of such Code is amended by striking para-
graph (11).
(10) STATE LEGISLATORS’ TRAVEL EXPENSES
AWAY
FROM
HOME.—Paragraph (4) of section
162(h) of such Code is amended by striking ‘‘For
taxable years beginning after December 31, 1980,
this’’ and inserting ‘‘This’’.
(11) HEALTH INSURANCE COSTS OF SELF-EM-
PLOYED
INDIVIDUALS.—Paragraph (1) of section
162(l) of such Code is amended to read as follows:
‘‘(1) ALLOWANCE OF DEDUCTION.—In the case
of an individual who is an employee within the
meaning of section 401(c)(1), there shall be allowed
as a deduction under this section an amount equal
to 100 percent of the amount paid during the tax-
able year for insurance which constitutes medical
care for the taxpayer and the taxpayer’s spouse and
dependents.’’.
(12) INTEREST.—
(A) 
Section 
163 
of 
such 
Code 
is
amended—
(i) by striking paragraph (6) of sub-
section (d), and
(ii) by striking paragraph (5) of sub-
section (h).
(B) Section 56(b)(1)(C) of such Code is
amended by striking clause (ii) and by redesig-
nating clauses (iii), (iv), and (v) as clauses (ii),
(iii), and (iv), respectively.
(13) AMOUNTS RECEIVED BY SURVIVING ANNU-
ITANT UNDER JOINT AND SURVIVOR ANNUITY CON-
TRACT.—Subparagraph (A) of section 691(d)(1) of
such Code is amended by striking ‘‘after December
31, 1953, and’’.
(14) INCOME TAXES OF MEMBERS OF ARMED
FORCES
ON
DEATH.—Section 692(a)(1) of such
Code is amended by striking ‘‘after June 24, 1950’’.
(15) TAX
ON
NONRESIDENT
ALIEN
INDIVID-
UALS.—Subparagraph (B) of section 871(a)(1) of
such Code is amended to read as follows:
‘‘(B) gains described in subsection (b) or
(c) of section 631,’’.
(16) OLD-AGE, SURVIVORS, AND DISABILITY IN-
SURANCE.—Subsection (a) of section 1401 of such
Code is amended by striking ‘‘the following percent’’
and all that follows and inserting ‘‘12.4 percent of
the amount of the self-employment income for such
taxable year.’’.