(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) Section 1(g)(7)(B)(ii)(II) is amended by
striking ‘‘15 percent’’ and inserting ‘‘10 percent’’.
(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 ‘‘15 percent’’, and
(B) by striking paragraph (13).
(3) Section 531 is amended by striking ‘‘39.6
percent’’ and inserting ‘‘33 percent’’.
(4) Section 541 of such Code is amended by
striking ‘‘39.6 percent’’ and inserting ‘‘33 percent’’.
(5) Section 3402(p)(1)(B) is amended by strik-
ing ‘‘7, 15, 28, or 31 percent’’ and inserting ‘‘5, 10,
15, or 25 percent’’.
(6) Section 3402(p)(2) is amended by striking
‘‘15 percent’’ and inserting ‘‘10 percent’’.
(7) Section 3402(q)(1) is amended by striking
‘‘28 percent’’ and inserting ‘‘15 percent’’.
(8) Section 3402(r)(3) is amended by striking
‘‘31 percent’’ and inserting ‘‘25 percent’’.
(9) Section 3406(a)(1) is amended by striking
‘‘31 percent’’ and inserting ‘‘25 percent’’.
(10) The Secretary of the Treasury may pre-
scribe percentages which shall apply in lieu of the
percentages specified in the amendments made by
this subsection in order to coordinate those percent-
ages with the percentages specified in the tables pre-
scribed under the last sentence of section 1(i)(1) of
the Internal Revenue Code of 1986, as added by this
section.
(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, 2001.
(2) AMENDMENTS
TO
WITHHOLDING
PROVI-
SIONS.—The amendments made by paragraphs (5),
(6), (7), (8), and (9) of subsection (e) shall apply to
amounts paid after December 31, 2001.
SEC. 3. REPEAL OF PHASEOUTS OF DEDUCTION FOR PER-
SONAL EXEMPTIONS AND OF ITEMIZED DE-
DUCTIONS.
(a) REPEAL OF PHASEOUT OF PERSONAL EXEMP-
TIONS.—
(1) IN
GENERAL.—Subsection (d) of section
151 (relating to exemption amount) is amended by
striking paragraph (3).
(2) TECHNICAL AMENDMENTS.—
(A) Paragraph (6) of section 1(f) is
amended—
(i) by striking ‘‘section 151(d)(4)’’ in
subparagraph (A) and inserting ‘‘section
151(d)(3)’’, and
(ii) by striking ‘‘section 151(d)(4)(A)’’
in subparagraph (B) and inserting ‘‘section
151(d)(3)’’.
(B) Paragraph (4) of section 151(d) 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
2000’ in subparagraph (B) thereof.’’
(b) REPEAL OF OVERALL LIMITATION ON ITEMIZED
DEDUCTIONS.—
(1) IN
GENERAL.—Section 68 is hereby re-
pealed.
(2) TECHNICAL AMENDMENTS.—
(A) Subparagraph (A) of section 1(f)(6) is
amended by striking ‘‘section 68(b)(2)’’.
(B) Paragraph (1) of section 56(b) is
amended by striking subparagraph (F).
(C) Subparagraph (B) of section 773(a)(3)
is amended by striking clause (i) and by redes-
ignating clauses (ii), (iii), and (iv) as clauses
(i), (ii), and (iii), respectively.
(D) The table of sections for part I of sub-
chapter B of chapter 1 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, 2001.
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