407
and whether contributions to plans are deductible or ex-
cludable from gross income under chapter 1.
‘‘(b) EFFECT
ON BUSINESS TAX DEDUCTIONS.—
Notwithstanding any provision to the contrary in this
chapter, no provision of this chapter shall cause any
amount to be treated as a cost of business purchase or
to otherwise be deducted from gross receipts for purposes
of computing the Simplified USA for Tax Businesses
under chapter 2.
‘‘(c) NO CREDITS.—Notwithstanding any provision
to the contrary in this chapter, no provision of this chapter
shall result in a tax credit against any tax imposed by
chapter 1 or chapter 2.
‘‘(d) EFFECT OF FAILURE TO COMPLY WITH PROVI-
SIONS.—A failure to comply with applicable provisions in
this chapter could cause a plan to lose its exemption from
the business tax and, thereby subject certain business ac-
tivities of the plan to the business tax and/or result in
the constructive distribution of plan assets to plan partici-
pants.’’
(c) SECTION 408A SUSPERSEDED BY SECTION 30.—
Section 408A is repealed.
SEC. 402. CLERICAL AMENDMENTS.
(a) TABLE OF SECTIONS.—The table of sections for
subpart A of part 1 of chapter 3 of the USA Tax Code
408
(formerly subchapter D of chapter 1 of the Code) is
amended by inserting at the beginning of the table:
‘‘CHAPTER 3—DEFERRED COMPENSATION,
ETC.’’
(b) RENUMBERING OF CHAPTERS.—
(1) RENUMBER CHAPTERS.—Chapters 2 and 3
of the Code are renumbered 4 and 5 respectively.
Such renumbering shall be reflected in all tables and
headings in the Code.
(2) CROSS REFERENCES.—Any cross reference
to chapter 2 or 3 of the Code contained in any provi-
sion of the Code that is not amended by this Act or
in any other statute shall be treated as a reference
to such chapter as renumbered by paragraph 1.
TITLE V—REPEAL OF ESTATE
AND GIFT TAXES
SEC. 501. REPEAL OF GRATUITOUS TRANSFER TAXES.
Subtitle B of the Code (relating to estate and gift
taxes) is repealed.
SEC 502. EFFECTIVE DATE.
Section 501 shall apply to—
(1) gifts made after December 31, 2001;
(2) the estates of decedents dying after Decem-
ber 31, 2001, and
409
(3) generating skipping transfers (within the
meaning of subchapter B of chapter 13 as in effect
before its repeal by this Act) occurring after Decem-
ber 31, 2001.
TITLE VI—TECHNICAL AND AD-
MINISTRATIVE CHANGES: EF-
FECTIVE DATES
SEC. 601. USA TAX CODE.
(a) REDESIGNATION OF THE CODE.—The Internal
Revenue Title enacted August 16, 1954, and as heretofore
and hereby amended may be cited as the ‘‘USA Tax
Code’’. The USA Tax Code, as hereinafter amended, may
be cited as the ‘‘USA Tax Code, as amended’’.
(b) REFERENCES IN LAWS, ETC.—Except where in-
appropriate, any reference in any law, Executive order, or
other document—
(1) to the Internal Revenue Code of 1954 or
the Internal Revenue Code of 1986 shall include a
reference to the USA Tax Code or the USA Tax
Code, as amended,
(2) to the USA Tax Code or the USA Tax
Code, as amended, shall include a reference, with re-
spect to periods before January 1, 2002, to the In-
ternal Revenue Code of 1954 or the Internal Rev-
enue Code of 1986.
410
SEC. 602. REVISIONS TO THE CODE.
Not later than January 1, 2003, the Secretary shall
submit to Congress proposed changes in the USA Tax
Code that—
(1) eliminate cross-references to the Internal
Revenue Code of 1986 (except with respect to tran-
sition issues) and insert provisions similar to the
cross-referenced sections of the Internal Revenue
Code of 1986,
(2) revise subtitles C through J of the USA
Tax Code to fully reflect the amendments to subtitle
A of the Code made by this Act and the repeal of
subtitle B,
(3) include statutory definitions or rules in
cases where the Secretary concludes that the defini-
tions or rules cannot or should not be addressed by
regulation,
(4) revise chapter 4 of the USA Tax Code (as
renumbered by section 402 of this Act) (relating to
the self-employment tax) to conform to changes
made by this Act, and
(5) revise chapter 5 of the USA Tax Code (as
renumbered by section 402 of this Act) (relating to
withholding on nonresident aliens and foreign cor-
porations) to reflect changes made in this Act.
411
SEC. 603. APPLICATION OF SUBTITLE F.
Until such time as subtitle F of the Code is amended
to reflect the amendments made by this Act, the provisions
of subtitle F shall be treated as generally applying to the
Simplified USA Tax—
(1) without regard to specific cross references,
(2) without regard to provisions relating to
partnerships, and
(3) as if the business tax under chapter 2 were
the corporate income tax and all business entities
were corporations (except for purposes of collection,
in which case the owners of noncorporate entities
shall be obligated for taxes owned by the entities to
the same extent as they would if the entity owed the
tax prior to the amendment of the Code).
SEC. 604. CLERICAL AMENDMENT.
The portion of the table at the beginning of the Code
listing subtitles and chapters of subtitle A is amended to
read as follows:
‘‘Subtitle A. Simplified USA Tax.
‘‘Subtitle B. [deleted].
‘‘Subtitle C. Employment taxes.
‘‘Subtitle D. Miscellaneous excise taxes.
‘‘Subtitle E. Alcohol, tobacco and certain other excise taxes.
‘‘Subtitle F. Procedure and administration.
‘‘Subtitle G. The Joint Committee on Taxation.
‘‘Subtitle H. Financing of presidential election campaigns.
‘‘Subtitle I. Trust Fund Code.
‘‘Subtitle K. Group health plan requirements.
‘‘Subtitle A—Simplified USA Tax
‘‘Chapter 1. Simplified USA Tax for individuals.
‘‘Chapter 2. Simplified USA Tax for businesses.
412
‘‘Chapter 3. Deferred compensation plans.
‘‘Chapter 4. Tax on self-employment income.
‘‘Chapter 5. Withholding of tax on nonresident aliens and foreign corpora-
tions.’’
SEC. 605. EFFECTIVE DATES.
(a) IN GENERAL.—Except as otherwise provided in
this Act, the amendments made by this Act shall be effec-
tive on January 1, 2002, with respect to tax years begin-
ning on such date.
(b) SPECIAL RULES FOR BUSINESSES WITH 52–53
WEEK YEAR.—If a business uses a 52–53 week taxable
year the amendments made by this Act shall apply to the
business with respect to its tax year beginning in the last
week in December except with respect to any transactions
occurring during 2001 that were structured to take advan-
tage of the application of this Act to such business at a
time when this Act did not apply to other businesses or
to individuals.
Æ