I
105TH CONGRESS
2D SESSION
H. R. 4053
To amend the Internal Revenue Code of 1986 to simplify the individual
income tax by repealing the adjusted gross income limitations on itemized
deductions and the personal exemption deduction, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 11, 1998
Mr. NEAL of Massachusetts (for himself and Mr. RANGEL) 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 simplify
the individual income tax by repealing the adjusted gross
income limitations on itemized deductions and the per-
sonal exemption deduction, 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. 
REPEAL 
OF 
OVERALL 
LIMITATION 
ON
ITEMIZED DEDUCTIONS.
(a) IN GENERAL.—Section 68 of the Internal Reve-
nue Code of 1986 is hereby repealed.
(b) TECHNICAL AMENDMENTS.—
(1) Subparagraph (A) of section 1(f)(6) of such
Code is amended by striking ‘‘section 68(b)(2)’’.
(2) Paragraph (1) of section 56(b) of such Code
is amended by striking subparagraph (F).
(3) Subparagraph (B) of section 773(a)(3) of
such Code is amended by striking clause (i) and by
redesignating clauses (ii), (iii), and (iv) as clauses
(i), (ii), and (iii), respectively.
(4) The table of sections for part I of sub-
chapter B of chapter 1 of such Code is amended by
striking the item relating to section 68.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1998.
SEC. 2. REPEAL OF PHASEOUT OF PERSONAL EXEMPTIONS.
(a) IN GENERAL.—Subsection (d) of section 151 of
the Internal Revenue Code of 1986 (relating to exemption
amount) is amended by striking paragraph (3).
(b) TECHNICAL AMENDMENTS.—
(1) Paragraph (6) of section 1(f) of such Code
is amended—
(A) by striking ‘‘section 151(d)(4)’’ in sub-
paragraph 
(A) 
and 
inserting 
‘‘section
151(d)(3)’’, and
(B) by striking ‘‘section 151(d)(4)(A)’’ in
subparagraph 
(B) 
and 
inserting 
‘‘section
151(d)(3)’’.
(2) Paragraph (4) of section 151(d) of such
Code is amended to read as follows:
‘‘(3) INFLATION ADJUSTMENT.—In the case of
any taxable year beginning in a calendar year after
1989, the dollar amount contained in paragraph (1)
shall be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar
year in which the taxable year begins, by sub-
stituting ‘calendar year 1988’ for ‘calendar year
1992’ in subparagraph (B) thereof.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1998.
SEC. 3. ADDITIONAL INCOME TAX.
(a) IN GENERAL.—Section 1 of the Internal Revenue
Code of 1986 is amended by adding at the end the follow-
ing new subsection:
‘‘(i) ADDITIONAL INCOME TAX.—
‘‘(1) IN GENERAL.—If the adjusted gross in-
come of an individual exceeds $75,000 (twice such
dollar amount in the case of a joint return), the tax
imposed by this section (determined after the appli-
cation of subsection (h) and without regard to this
subsection) shall be increased by an amount equal to
1.59 percent of such excess.
‘‘(2) INFLATION ADJUSTMENT.—In the case of
any taxable year beginning in a calendar year after
1999, the $75,000 amount contained in paragraph
(1) shall be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under subsection (f)(3) for the calendar
year in which the taxable year begins, by sub-
stituting ‘calendar year 1998’ for ‘calendar year
1992’ in subparagraph (B) thereof.
If any increase under the preceding sentence is not
a multiple of $50, such increase shall be rounded to
the nearest multiple of $50.
‘‘(3) TAX
NOT
TO
APPLY
TO
ESTATES
AND
TRUSTS.—This subsection shall not apply to an es-
tate or trust.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1998.
(c) SECTION 15 NOT TO APPLY.—The amendment
made by this section shall not be treated as a change in
a rate of tax for purposes of section 15 of such Code.
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