•HRES 256 EH
the interest expense on the total United States
debt is not greater than such interest expense
for the 12-month period ending on July 31 of
the preceding calendar year.
‘‘(D) TOTAL UNITED STATES DEBT.—For
purposes of this paragraph, the term ‘total
United States debt’ means obligations which
are subject to the public debt limit in section
3101 of title 31, United States Code.’’.
Page 16, line 24, strike ‘‘2007’’ and insert ‘‘2008’’.
Page 17, line 7, strike ‘‘2002’’ and insert ‘‘2004’’.
Page 17, line 8, strike ‘‘2008’’ and insert ‘‘2009’’.
Page 17, strike the table after line 13 and insert the
following new table:
‘‘For taxable years beginning
The applicable
in calendar year—
percentage is—
2005 .....................................................................................
2006 .....................................................................................
2007 .....................................................................................
2008 .....................................................................................
50.’’.
Page 18, lines 18 and 19, strike ‘‘2007’’ and insert
‘‘2008’’.
Page 20, strike lines 1 through 6 and insert the fol-
lowing:
•HRES 256 EH
‘‘(A) in the case of any taxable year begin-
ning in 2001 or 2002, $50 ($100 in the case
of a joint return);
‘‘(B) in the case of any taxable year begin-
ning in 2003 or 2004, $100 ($200 in the case
of a joint return); and
‘‘(C) in the case of any taxable year begin-
ning after 2004, $200 ($400 in the case of a
joint return).
Page 38, strike line 24 and all that follows through
page 40, line 17, and insert the following:
‘‘(2) a tax of 30 percent of the net capital gain
(or, if less, taxable income).
‘‘(b) CROSS REFERENCES.—For computation of the
alternative tax—
‘‘(1) in the case of life insurance companies, see
section 801(a)(2);
‘‘(2) in the case of regulated investment compa-
nies and their shareholders, see section 852(b)(3)(A)
and (D); and
‘‘(3) in the case of real estate investment
trusts, see section 857(b)(3)(A).’’.
(b) TECHNICAL AMENDMENTS.—
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(1) Paragraphs (1) and (2) of section 1445(e)
are each amended by striking ‘‘35 percent’’ and in-
serting ‘‘30 percent’’.
(2)(A) 
The 
second 
sentence 
of 
section
7518(g)(6)(A) is amended by striking ‘‘34 percent’’
and inserting ‘‘30 percent’’.
(B) 
The 
second 
sentence 
of 
section
607(h)(6)(A) of the Merchant Marine Act, 1936, is
amended by striking ‘‘34 percent’’ and inserting ‘‘30
percent’’.
(c) 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, 2004.
(2) WITHHOLDING.—The amendment made by
subsection (b)(1) shall apply to amounts paid after
December 31, 2004.
Page 41, strike line 16 and all that follows through
the end of the page and insert the following:
‘‘(2) CORPORATIONS FOR TAXABLE YEARS BE-
GINNING AFTER 2004.—In the case of a corporation
for any taxable year beginning after 2004 and before
2009, the limitation under paragraph (1) shall be in-
creased by the applicable percentage (determined in
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accordance with the following table) of the tentative
minimum tax for the taxable year.
‘‘For taxable years beginning
The applicable
in calendar year—
percentage is—
2005 .....................................................................................
2006 .....................................................................................
2007 .....................................................................................
2008 .....................................................................................
50.
Page 42, line 17, strike ‘‘2002’’ and insert ‘‘2004’’.
Page 42, line 24, strike ‘‘2007’’ and insert ‘‘2008’’.
Page 85, strike line 20 and all that follows through
page 88, line 7, and insert the following new section:
SEC. 611. ADDITIONAL REDUCTIONS OF ESTATE AND GIFT
TAX RATES.
(a) MAXIMUM RATE OF TAX REDUCED TO 50 PER-
CENT.—
(1) IN GENERAL.—The table contained in sec-
tion 2001(c)(1) is amended by striking the 2 highest
brackets and inserting the following:
‘‘Over $2,500,000 ..........................
$1,025,800, plus 50% of the excess
over $2,500,000.’’.
(2) PHASE-IN OF REDUCED RATE.—Subsection
(c) of section 2001 is amended by adding at the end
the following new paragraph:
‘‘(3) PHASE-IN
OF
REDUCED
RATE.—In the
case of decedents dying, and gifts made, during
2001, the last item in the table contained in para-
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graph (1) shall be applied by substituting ‘53%’ for
‘50%’.’’.
(b) 
REPEAL
OF
PHASEOUT
OF
GRADUATED
RATES.—Subsection (c) of section 2001 is amended by
striking paragraph (2) and redesignating paragraph (3),
as added by subsection (a), as paragraph (2).
(c) ADDITIONAL REDUCTIONS OF RATES OF TAX.—
Subsection (c) of section 2001, as so amended, is amended
by adding at the end the following new paragraph:
‘‘(3) PHASEDOWN OF TAX.—In the case of es-
tates of decedents dying, and gifts made, during any
calendar year after 2004 and before 2009—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (C), the tentative tax under this
subsection shall be determined by using a table
prescribed by the Secretary (in lieu of using the
table contained in paragraph (1)) which is the
same as such table; except that—
‘‘(i) each of the rates of tax shall be
reduced by the number of percentage
points determined under subparagraph
(B); and
‘‘(ii) the amounts setting forth the tax
shall be adjusted to the extent necessary to
reflect the adjustments under clause (i).