I
106TH CONGRESS
1ST SESSION
H. R. 767
To amend the Internal Revenue Code of 1986 to reduce individual income
taxes by increasing the amount of taxable income which is taxed at
the lowest income tax rate.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 12, 1999
Mr. THUNE (for himself, Ms. DUNN, Mr. COOKSEY, and Mr. CHABOT) intro-
duced the following bill; which was referred to the Committee on Ways
and Means
A BILL
To amend the Internal Revenue Code of 1986 to reduce
individual income taxes by increasing the amount of tax-
able income which is taxed at the lowest income tax
rate.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Middle Class Tax Relief Act of 1999’’.
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
(c) SECTION 15 NOT TO APPLY.—No amendment
made by section 3 shall be treated as a change in a rate
of tax for purposes of section 15 of the Internal Revenue
Code of 1986.
SEC. 2. FINDINGS.
The Congress hereby finds that—
(1) the first Federal budget surplus in almost
30 years was realized at the end of fiscal year 1998
and additional annual surpluses are anticipated;
(2) in anticipation of such surpluses, a system-
atic plan should be put in place to retire our
$5,500,000,000,000 debt while restoring the social
security and other trust funds; and
(3) once such a plan has been adopted in the
context of a balanced Federal budget and as an al-
ternative to new Government spending, Congress
should provide broad-based tax relief that will allow
hard-working Americans to keep more of what they
earn and the freedom to provide for their own needs.
SEC. 3. REDUCTION OF INCOME TAX RATES; ELIMINATION
OF MARRIAGE PENALTY.
(a) GENERAL RULE.—Section 1 (relating to tax im-
posed) is amended by striking subsections (a) through (e)
and inserting the following:
‘‘(a) MARRIED INDIVIDUALS FILING JOINT RETURNS
AND SURVIVING SPOUSES.—There is hereby imposed on
the taxable income of—
‘‘(1) every married individual (as defined in sec-
tion 7703) who makes a single return jointly with
his spouse under section 6013, and
‘‘(2) every surviving spouse (as defined in sec-
tion 2(a)),
a tax determined in accordance with the following table:
‘‘If taxable income is:
The tax is:
Not over $70,000 ..........................
15% of taxable income.
Over 
$70,000 
but 
not 
over
$104,050.
$10,500, plus 28% of the excess over
$70,000.
Over 
$104,050 
but 
not 
over
$158,550.
$20,034, plus 31% of the excess over
$104,050.
Over 
$158,550 
but 
not 
over
$283,150.
$36,929, plus 36% of the excess over
$158,550.
Over $283,150 ...............................
$81,785, plus 39.6% of the excess
over $283,150.
‘‘(b) HEADS OF HOUSEHOLDS.—There is hereby im-
posed on the taxable income of every head of a household
(as defined in section 2(b)) a tax determined in accordance
with the following table:
‘‘If taxable income is:
The tax is:
Not over $52,600 ..........................
15% of taxable income.
Over 
$52,600 
but 
not 
over
$89,150.
$7,890, plus 28% of the excess over
$52,600.
‘‘If taxable income is:
The tax is:
Over 
$89,150 
but 
not 
over
$144,400.
$18,124, plus 31% of the excess over
$89,150.
Over 
$144,400 
but 
not 
over
$283,150.
$35,251.50, plus 36% of the excess
over $144,400.
Over $283,150 ...............................
$85,201.50, plus 39.6% of the excess
over $283,150.
‘‘(c) UNMARRIED INDIVIDUALS (OTHER THAN SUR-
VIVING SPOUSES AND HEADS OF HOUSEHOLDS).—There
is hereby imposed on the taxable income of every individ-
ual (other than a surviving spouse as defined in section
2(a) or the head of a household as defined in section 2(b))
who is not a married individual (as defined in section
7703) a tax determined in accordance with the following
table:
‘‘If taxable income is:
The tax is:
Not over $35,000 ..........................
15% of taxable income.
Over 
$35,000 
but 
not 
over
$62,450.
$5,250, plus 28% of the excess over
$35,000.
Over 
$62,450 
but 
not 
over
$130,250.
$12,936, plus 31% of the excess over
$62,450.
Over 
$130,250 
but 
not 
over
$283,150.
$33,954, plus 36% of the excess over
$130,250.
Over $283,150 ...............................
$88,998, plus 39.6% of the excess
over $283,150.
‘‘(d) MARRIED INDIVIDUALS FILING SEPARATE RE-
TURNS.—There is hereby imposed on the taxable income
of every married individual (as defined in section 7703)
who does not make a single return jointly with his spouse
under section 6013, a tax determined in accordance with
the following table:
‘‘If taxable income is:
The tax is:
Not over $35,000 ..........................
15% of taxable income.
Over 
$35,000 
but 
not 
over
$52,025.
$5,250, plus 28% of the excess over
$35,000.
Over 
$52,025 
but 
not 
over
$79,275.
$10,017, plus 31% of the excess over
$52,025.
‘‘If taxable income is:
The tax is:
Over 
$79,275 
but 
not 
over
$141,575.
$18,464.50, plus 36% of the excess
over $79,275.
Over $141,575 ...............................
$40,892.50, plus 39.6% of the excess
over $141,575.
‘‘(e) ESTATES AND TRUSTS.—There is hereby im-
posed on the taxable income of—
‘‘(1) every estate, and
‘‘(2) every trust,
taxable under this subsection a tax determined in accord-
ance with the following table:
‘‘If taxable income is:
The tax is:
Not over $1,750 ............................
15% of taxable income.
Over $1,750 but not over $4,050 ..
$262.50, plus 28% of the excess over
$1,750.
Over $4,050 but not over $6,200 ..
$906.50, plus 31% of the excess over
$4,050.
Over $6,200 but not over $8,450 ..
$1,573, plus 36% of the excess over
$6,200.
Over $8,450 ...................................
$2,383, plus 39.6% of the excess over
$8,450.’’.
(b) CONFORMING AMENDMENTS.—
(1) Subsection (f) of section 1 is amended—
(A) by striking ‘‘1993’’ in paragraph (1)
and inserting ‘‘1999’’,
(B) by striking ‘‘1992’’ in paragraph
(3)(B) and inserting ‘‘1998’’, and
(C) by striking paragraph (7).
(2) The following provisions are each amended
by striking ‘‘1992’’ and inserting ‘‘1998’’ each place
it appears:
(A) Section 25A(h).
(B) Section 32(j)(1)(B).
(C) Section 41(e)(5)(C).
(D) Section 59(j)(2)(B).
(E) Section 63(c)(4)(B).
(F) Section 68(b)(2)(B).
(G) Section 135(b)(2)(B)(ii).
(H) Section 151(d)(4).
(I) Section 220(g)(2).
(J) Section 221(g)(1)(B).
(K) Section 512(d)(2)(B).
(L) Section 513(h)(2)(C)(ii).
(M) Section 685(c)(3)(B).
(N) Section 877(a)(2).
(O) Section 911(b)(2)(D)(ii)(II).
(P) Section 2032A(a)(3)(B).
(Q) Section 2503(b)(2)(B).
(R) Section 2631(c)(1)(B).
(S) Section 4001(e)(1)(B).
(T) Section 4261(e)(4)(A)(ii).
(U) Section 6039F(d).
(V) Section 6323(i)(4)(B).
(W) Section 6601(j)(3)(B).
(X) Section 7430(c)(1).
(3) Subclause (II) of section 42(h)(6)(G)(i) is
amended by striking ‘‘1987’’ and inserting ‘‘1998’’.
(4) Subparagraph (B) of section 6334(g)(1) is
amended by striking ‘‘by substituting ‘calendar year
1998’ 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.
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