H. R. 5771—35 
(B) Paragraph (5) of section 172(d) is amended to read 
as follows: 
‘‘(5) 
COMPUTATION
OF
DEDUCTION
FOR
DIVIDENDS 
RECEIVED.—The deductions allowed by section 243 (relating 
to dividends received by corporations) and 245 (relating to 
dividends received from certain foreign corporations) shall be 
computed without regard to section 246(b) (relating to limitation 
on aggregate amount of deductions).’’. 
(C) Paragraph (1) of section 243(c) is amended to read 
as follows: 
‘‘(1) IN GENERAL.—In the case of any dividend received 
from a 20-percent owned corporation, subsection (a)(1) shall 
be applied by substituting ‘80 percent’ for ‘70 percent’.’’. 
(D) Section 243(d) is amended by striking paragraph 
(4). 
(E) Section 246 is amended— 
(i) by striking ‘‘, 244,’’ in subsection (a)(1), 
(ii) in subsection (b)(1)— 
(I) by striking ‘‘sections 243(a)(1), 244(a),’’ and 
inserting ‘‘section 243(a)(1)’’, 
(II) by striking ‘‘244(a),’’ the second place it 
appears, and 
(III) by striking ‘‘subsection (a) or (b) of section 
245, and 247,’’ and inserting ‘‘and subsection (a) 
or (b) of section 245,’’, and 
(iii) by striking ‘‘, 244,’’ in subsection (c)(1). 
(F) Section 246A is amended by striking ‘‘, 244,’’ both 
places it appears in subsections (a) and (e). 
(G) 
Sections 
263(g)(2)(B)(iii), 
277(a), 
301(e)(2), 
469(e)(4), 512(a)(3)(A), subparagraphs (A), (C), and (D) of 
section 805(a)(4), 805(b)(5), 812(e)(2)(A), 815(c)(2)(A)(iii), 
832(b)(5), 833(b)(3)(E), and 1059(b)(2)(B) are each amended 
by striking ‘‘, 244,’’ each place it appears. 
(H) Section 1244(c)(2)(C) is amended by striking ‘‘244,’’. 
(I) Section 805(a)(4)(B) is amended by striking ‘‘, 
244(a),’’ each place it appears. 
(J) Section 810(c)(2)(B) is amended by striking ‘‘244 
(relating to dividends on certain preferred stock of public 
utilities),’’. 
(K) The amendments made by this paragraph shall 
not apply to preferred stock issued before October 1, 1942 
(determined in the same manner as under section 247 
of the Internal Revenue Code of 1986 as in effect before 
its repeal by such amendments). 
(42) ORGANIZATION EXPENSES.—Section 248(c) is amended 
by striking ‘‘beginning after December 31, 1953,’’ and by 
striking the last sentence. 
(43) BOND
REPURCHASE
PREMIUM.—Section 249(b)(1) is 
amended by striking ‘‘, in the case of bonds or other evidences 
of indebtedness issued after February 28, 1913,’’. 
(44) AMOUNT
OF
GAIN
WHERE
LOSS
PREVIOUSLY
DIS-
ALLOWED.—Section 267(d) is amended by striking ‘‘(or by reason 
of section 24(b) of the Internal Revenue Code of 1939)’’ in 
paragraph (1), by striking ‘‘after December 31, 1953,’’ in para-
graph (2), by striking the second sentence, and by striking 
‘‘or by reason of section 118 of the Internal Revenue Code 
of 1939’’ in the last sentence.
H. R. 5771—36 
(45) ACQUISITIONS MADE TO EVADE OR AVOID INCOME TAX.— 
Paragraphs (1) and (2) of section 269(a) are each amended 
by striking ‘‘or acquired on or after October 8, 1940,’’. 
(46) MEALS AND ENTERTAINMENT.—Paragraph (3) of section 
274(n) is amended— 
(A) by striking ‘‘(A) IN GENERAL.—’’, 
(B) by striking ‘‘substituting ‘the applicable percentage’ 
for’’ and inserting ‘‘substituting ‘80 percent’ for’’, and 
(C) by striking subparagraph (B). 
(47) INTEREST ON INDEBTEDNESS INCURRED BY CORPORA-
TIONS
TO
ACQUIRE
STOCK
OR
ASSETS
OF
ANOTHER
CORPORA-
TION.— 
(A) Section 279 is amended— 
(i) by striking ‘‘after December 31, 1967,’’ in sub-
section (a)(2), 
(ii) by striking ‘‘after October 9, 1969,’’ in sub-
section (b), 
(iii) by striking ‘‘after October 9, 1969, and’’ in 
subsection (d)(5), and 
(iv) by striking subsection (i) and redesignating 
subsection (j) as subsection (i). 
(B) The amendments made by this paragraph shall 
not— 
(i) apply to obligations issued on or before October 
9, 1969 (determined in the same manner as under 
section 279 of the Internal Revenue Code of 1986 as 
in effect before such amendments), and 
(ii) be construed to require interest on obligations 
issued on or before December 31, 1967, to be taken 
into account under section 279(a)(2) of such Code (as 
in effect after such amendments). 
(48) BANK HOLDING COMPANIES.— 
(A) Clause (iii) of section 304(b)(3)(D) is repealed. 
(B) The heading of subparagraph (D) of section 
304(b)(3) is amended by striking ‘‘AND SPECIAL RULE’’. 
(49) EFFECT
ON
EARNINGS
AND
PROFITS.—Subsection (d) 
of section 312 is amended by striking paragraph (2) and redesig-
nating paragraph (3) as paragraph (2). 
(50) DISQUALIFIED STOCK.—Paragraph (3) of section 355(d) 
is amended by striking ‘‘after October 9, 1990, and’’ each place 
it appears. 
(51) BASIS TO CORPORATIONS.—Section 362 is amended by 
striking ‘‘on or after June 22, 1954’’ in subsection (a) and 
by striking ‘‘, on or after June 22, 1954,’’ each place it appears 
in subsection (c). 
(52) TEMPORARY WAIVER OF MINIMUM REQUIRED DISTRIBU-
TION.—Section 401(a)(9) is amended by striking subparagraph 
(H). 
(53) INDIVIDUAL RETIREMENT ACCOUNTS.—Clause (i) of sec-
tion 408(p)(2)(E) is amended to read as follows: 
‘‘(i) IN GENERAL.—For purposes of subparagraph 
(A)(ii), the applicable amount is $10,000.’’. 
(54) TAX CREDIT EMPLOYEE STOCK OWNERSHIP PLANS.—Sec-
tion 409 is amended by striking subsection (q). 
(55) CATCH-UP CONTRIBUTIONS.—Clauses (i) and (ii) of sec-
tion 414(v)(2)(B) are amended to read as follows:
H. R. 5771—37 
‘‘(i) In the case of an applicable employer plan 
other than a plan described in section 401(k)(11) or 
408(p), the applicable dollar amount is $5,000. 
‘‘(ii) In the case of an applicable employer plan 
described in section 401(k)(11) or 408(p), the applicable 
dollar amount is $2,500.’’. 
(56) EMPLOYEE
STOCK
PURCHASE
PLANS.—Section 423(a) 
is amended by striking ‘‘after December 31, 1963,’’. 
(57) PENSION RELATED TRANSITION RULES.— 
(A) Section 402(g)(1)(B) is amended by striking ‘‘shall 
be’’ and all that follows and inserting ‘‘is $15,000.’’. 
(B)(i) Subparagraph (D) of section 417(e)(3) is 
amended— 
(I) by striking clauses (ii) and (iii), 
(II) by striking ‘‘if—’’ and all that follows through 
‘‘section 
430(h)(2)(D)’’ 
and 
inserting 
‘‘if 
section 
430(h)(2)(D)’’, and 
(III) by striking ‘‘described in such section,’’ and 
inserting ‘‘described in such section.’’. 
(ii) Clause (iii) of section 205(g)(3)(B) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1055(g)(3)(B)) is amended— 
(I) by striking subclauses (II) and (III), 
(II) by striking ‘‘if—’’ and all that follows through 
‘‘section 
303(h)(2)(D)’’ 
and 
inserting 
‘‘if 
section 
303(h)(2)(D)’’, and 
(III) by striking ‘‘described in such section,’’ and 
inserting ‘‘described in such section.’’. 
(C)(i) Paragraph (5) of section 430(c) is amended by 
striking subparagraph (B) and by striking ‘‘(A) IN GEN-
ERAL.—’’. 
(ii) Paragraph (5) of section 303(c) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1083(c)) 
is amended by striking subparagraph (B) and by striking 
‘‘(A) IN GENERAL.—’’. 
(D)(i) Paragraph (2) of section 430(h) is amended by 
striking subparagraph (G). 
(ii) Paragraph (2) of section 303(h) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1083(h)) 
is amended by striking subparagraph (G). 
(E)(i) Paragraph (3) of section 436(j), as added by sec-
tion 113(a)(1)(B) of the Pension Protection Act of 2006, 
is amended by striking subparagraphs (B) and (C) and 
by striking ‘‘(A) IN GENERAL.—’’. 
(ii) Subparagraph (C) of section 206(g)(9) of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1056(g)(9)) is amended by striking clauses (ii) and 
(iii) and by striking ‘‘(i) IN GENERAL.—’’. 
(F)(i) Section 436(j) is amended by striking the para-
graph (3) added by section 203(a)(2) of the Preservation 
of Access to Care for Medicare Beneficiaries and Pension 
Relief Act of 2010. 
(ii) Section 206(g)(9) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1056(g)(9)) is 
amended by striking subparagraph (D). 
(G)(i) Section 436 is amended by striking subsection 
(m).
H. R. 5771—38 
(ii) Section 206(g) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1056(g)) is amended by 
striking paragraph (11). 
(H) Section 457(e)(15)(A) is amended by striking ‘‘shall 
be’’ and all that follows and inserting ‘‘is $15,000.’’. 
(58) LIMITATION ON DEDUCTIONS FOR CERTAIN FARMING.— 
(A) Section 464 is amended by striking ‘‘any farming 
syndicate (as defined in subsection (c))’’ both places it 
appears in subsections (a) and (b) and inserting ‘‘any tax-
payer to whom subsection (d) applies’’. 
(B)(i) Subsection (c) of section 464 is hereby moved 
to the end of section 461 and redesignated as subsection 
(j). 
(ii) Such subsection (j) is amended— 
(I) by striking ‘‘For purposes of this section’’ in 
paragraph (1) and inserting ‘‘For purposes of subsection 
(i)(4)’’, and 
(II) by adding at the end the following new para-
graphs: 
‘‘(3) FARMING.—For purposes of this subsection, the term 
‘farming’ has the meaning given to such term by section 464(e). 
‘‘(4) LIMITED ENTREPRENEUR.—For purposes of this sub-
section, the term ‘limited entrepreneur’ means a person who— 
‘‘(A) has an interest in an enterprise other than as 
a limited partner, and 
‘‘(B) does not actively participate in the management 
of such enterprise.’’. 
(iii) Paragraph (4) of section 461(i) is amended 
by striking ‘‘section 464(c)’’ and inserting ‘‘subsection 
(j)’’. 
(C) Section 464 is amended— 
(i) by striking subsections (e) and (g) and redesig-
nating subsections (d) and (f) as subsections (c) and 
(d), respectively, and 
(ii) by adding at the end the following new sub-
section: 
‘‘(e) FARMING.—For purposes of this section, the term ‘farming’ 
means the cultivation of land or the raising or harvesting of any 
agricultural or horticultural commodity including the raising, 
shearing, feeding, caring for, training, and management of animals. 
For purposes of the preceding sentence, trees (other than trees 
bearing fruit or nuts) shall not be treated as an agricultural or 
horticultural commodity.’’. 
(D) Subsection (d) of section 464 of such Code (as 
redesignated by subparagraph (C)) is amended— 
(i) by striking paragraph (1) and redesignating 
paragraphs (2), (3), and (4) as paragraphs (1), (2), 
and (3), respectively, and 
(ii) by striking ‘‘SUBSECTIONS (A) AND (B) TO APPLY 
TO’’ in the heading. 
(E) Subparagraph (A) of section 58(a)(2) is amended 
by striking ‘‘section 464(c)’’ and inserting ‘‘section 461(j)’’. 
(59) DEDUCTIONS LIMITED TO AMOUNT AT RISK.—Subpara-
graph (A) of section 465(c)(3) is amended by striking ‘‘In the 
case of taxable years beginning after December 31, 1978, this’’ 
and inserting ‘‘This’’. 
(60) PASSIVE ACTIVITY LOSSES AND CREDITS LIMITED.—
H. R. 5771—39 
(A) Section 469 is amended by striking subsection (m). 
(B) Subsection (b) of section 58 is amended by adding 
‘‘and’’ at the end of paragraph (1), by striking paragraph 
(2), and by redesignating paragraph (3) as paragraph (2). 
(61) ADJUSTMENTS REQUIRED BY CHANGES IN METHOD OF 
ACCOUNTING.—Section 
481(b)(3) 
is 
amended 
by 
striking 
subparagraph (C). 
(62) EXEMPTION
FROM
TAX
ON
CORPORATIONS, CERTAIN 
TRUSTS, ETC.—Section 501 is amended by striking subsection 
(s). 
(63) REQUIREMENTS FOR EXEMPTION.— 
(A) Section 503(a)(1) is amended to read as follows: 
‘‘(1) GENERAL RULE.—An organization described in para-
graph (17) or (18) of section 501(c), or described in section 
401(a) and referred to in section 4975(g) (2) or (3), shall not 
be exempt from taxation under section 501(a) if it has engaged 
in a prohibited transaction.’’. 
(B) Paragraph (2) of section 503(a) is amended by 
striking ‘‘described in section 501(c)(17) or (18) or para-
graph (a)(1)(B)’’ and inserting ‘‘described in paragraph (1)’’. 
(C) Subsection (c) of section 503 is amended by striking 
‘‘described in section 501(c)(17) or (18) or subsection 
(a)(1)(B)’’ and inserting ‘‘described in subsection (a)(1)’’. 
(64) ACCUMULATED TAXABLE INCOME.—Paragraph (1) of sec-
tion 535(b) and paragraph (1) of section 545(b) are each 
amended by striking ‘‘section 531’’ and all that follows and 
inserting ‘‘section 531 or the personal holding company tax 
imposed by section 541.’’. 
(65) DEFINITION OF PROPERTY.—Subsection (b) of section 
614 is amended— 
(A) by striking paragraphs (3)(C) and (5), and 
(B) in paragraph (4), by striking ‘‘whichever of the 
following years is later: The first taxable year beginning 
after December 31, 1963, or’’. 
(66) AMOUNTS RECEIVED BY SURVIVING ANNUITANT UNDER 
JOINT AND SURVIVOR ANNUITY CONTRACT.—Subparagraph (A) 
of section 691(d)(1) is amended by striking ‘‘after December 
31, 1953, and’’. 
(67) INCOME
TAXES
OF
MEMBERS
OF
ARMED
FORCES
ON 
DEATH.—Section 692(a)(1) is amended by striking ‘‘after June 
24, 1950’’. 
(68) SPECIAL RULES FOR COMPUTING RESERVES.—Paragraph 
(7) of section 807(e) is amended by striking subparagraph (B) 
and redesignating subparagraph (C) as subparagraph (B). 
(69) INSURANCE COMPANY TAXABLE INCOME.— 
(A) Section 832(e) is amended by striking ‘‘of taxable 
years beginning after December 31, 1966,’’. 
(B) Section 832(e)(6) is amended by striking ‘‘In the 
case of any taxable year beginning after December 31, 
1970, the’’ and inserting ‘‘The’’. 
(70) CAPITALIZATION
OF
CERTAIN
POLICY
ACQUISITION 
EXPENSES.—Section 848 is amended by striking subsection (j). 
(71) TAX ON NONRESIDENT ALIEN INDIVIDUALS.—Subpara-
graph (B) of section 871(a)(1) is amended to read as follows: 
‘‘(B) gains described in subsection (b) or (c) of section 
631,’’.
H. R. 5771—40 
(72) LIMITATION
ON
CREDIT.—Paragraph (2) of section 
904(d) is amended by striking subparagraph (J). 
(73) FOREIGN
EARNED
INCOME.—Clause (i) of section 
911(b)(2)(D) is amended to read as follows: 
‘‘(i) IN GENERAL.—The exclusion amount for any 
calendar year is $80,000.’’. 
(74) BASIS OF PROPERTY ACQUIRED FROM DECEDENT.— 
(A) Section 1014(a)(2) is amended to read as follows: 
‘‘(2) in the case of an election under section 2032, its 
value at the applicable valuation date prescribed by such sec-
tion,’’. 
(B) Section 1014(b) is amended by striking paragraphs 
(7) and (8). 
(75) ADJUSTED
BASIS.—Section 1016(a) is amended by 
striking paragraph (12). 
(76) PROPERTY
ON
WHICH
LESSEE
HAS
MADE
IMPROVE-
MENTS.—Section 1019 is amended by striking the last sentence. 
(77) INVOLUNTARY CONVERSION.—Section 1033 is amended 
by striking subsection (j) and by redesignating subsections (k) 
and (l) as subsections (j) and (k), respectively. 
(78) PROPERTY
ACQUIRED
DURING
AFFILIATION.—Section 
1051 is hereby repealed, and the table of sections for part 
IV of subchapter O of chapter 1 is amended by striking the 
item relating to section 1051. 
(79) CAPITAL GAINS AND LOSSES.—Section 1222 is amended 
by striking the last sentence. 
(80) HOLDING PERIOD OF PROPERTY.— 
(A) Paragraph (1) of section 1223 is amended by 
striking ‘‘after March 1, 1954,’’. 
(B) Paragraph (4) of section 1223 is amended by 
striking ‘‘ ‘(or under so much of section 1052(c) as refers 
to section 113(a)(23) of the Internal Revenue Code of 
1939)’ ’’. 
(C) Paragraphs (6) and (8) of section 1223 are repealed. 
(81) PROPERTY USED IN THE TRADE OR BUSINESS AND INVOL-
UNTARY CONVERSIONS.—Subparagraph (A) of section 1231(c)(2) 
is amended by striking ‘‘beginning after December 31, 1981’’. 
(82) SALE
OR
EXCHANGE
OF
PATENTS.—Section 1235 is 
amended— 
(A) by striking subsection (c) and by redesignating 
subsections (d) and (e) as subsections (c) and (d), respec-
tively, and 
(B) by striking ‘‘subsection (d)’’ in subsection (b)(2)(B) 
and inserting ‘‘subsection (c)’’. 
(83) DEALERS IN SECURITIES.—Subsection (b) of section 1236 
is amended by striking ‘‘after November 19, 1951,’’. 
(84) SALE OF PATENTS.—Subsection (a) of section 1249 is 
amended by striking ‘‘after December 31, 1962,’’. 
(85) GAIN FROM DISPOSITION OF FARMLAND.—Paragraph (1) 
of section 1252(a) is amended— 
(A) by striking ‘‘after December 31, 1969’’ the first 
place it appears, and 
(B) by striking ‘‘after December 31, 1969,’’ in subpara-
graph (A). 
(86) TREATMENT OF AMOUNTS RECEIVED ON RETIREMENT 
OR SALE OR EXCHANGE OF DEBT INSTRUMENTS.—Subsection (c) 
of section 1271 is amended to read as follows:
H. R. 5771—41 
‘‘(c) SPECIAL RULE FOR CERTAIN OBLIGATIONS WITH RESPECT 
TO WHICH ORIGINAL ISSUE DISCOUNT NOT CURRENTLY INCLUD-
IBLE.— 
‘‘(1) IN
GENERAL.—On the sale or exchange of debt 
instruments issued by a government or political subdivision 
thereof after December 31, 1954, and before July 2, 1982, 
or by a corporation after December 31, 1954, and on or before 
May 27, 1969, any gain realized which does not exceed— 
‘‘(A) an amount equal to the original issue discount, 
or 
‘‘(B) if at the time of original issue there was no 
intention to call the debt instrument before maturity, an 
amount which bears the same ratio to the original issue 
discount as the number of complete months that the debt 
instrument was held by the taxpayer bears to the number 
of complete months from the date of original issue to the 
date of maturity, shall be considered as ordinary income. 
‘‘(2) SUBSECTION
(a)(2)(A) 
NOT
TO
APPLY.—Subsection 
(a)(2)(A) shall not apply to any debt instrument referred to 
in paragraph (1) of this subsection. 
‘‘(3) CROSS REFERENCE.—For current inclusion of original 
issue discount, see section 1272.’’. 
(87) AMOUNT AND METHOD OF ADJUSTMENT.—Section 1314 
is amended by striking subsection (d) and by redesignating 
subsection (e) as subsection (d). 
(88) ELECTION; REVOCATION; TERMINATION.—Clause (iii) of 
section 1362(d)(3)(A) is amended by striking ‘‘unless’’ and all 
that follows and inserting ‘‘unless the corporation was an S 
corporation for such taxable year.’’. 
(89) OLD-AGE, SURVIVORS, AND
DISABILITY
INSURANCE.— 
Subsection (a) of section 1401 is amended by striking ‘‘the 
following percent’’ and all that follows and inserting ‘‘12.4 per-
cent of the amount of the self-employment income for such 
taxable year.’’. 
(90) HOSPITAL
INSURANCE.—Paragraph (1) of section 
1401(b) is amended by striking: ‘‘the following percent’’ and 
all that follows and inserting ‘‘2.9 percent of the amount of 
the self-employment income for such taxable year.’’. 
(91) MINISTERS, MEMBERS OF RELIGIOUS ORDERS, AND CHRIS-
TIAN SCIENCE PRACTITIONERS.—Paragraph (3) of section 1402(e) 
is amended— 
(A) by striking ‘‘whichever of the following dates is 
later: (A)’’, and 
(B) by striking ‘‘;or (B)’ ’’ and all that follows and 
inserting a period. 
(92) WITHHOLDING OF TAX ON NONRESIDENT ALIENS.—The 
first sentence of subsection (b) of section 1441 and the first 
sentence of paragraph (5) of section 1441(c) are each amended 
by striking ‘‘gains subject to tax’’ and all that follows through 
‘‘October 4, 1966’’ and inserting ‘‘and gains subject to tax under 
section 871(a)(1)(D)’’. 
(93) AFFILIATED GROUP DEFINED.—Subparagraph (A) of sec-
tion 1504(a)(3) is amended by striking ‘‘for a taxable year 
which includes any period after December 31, 1984’’ in clause 
(i) and by striking ‘‘in a taxable year beginning after December 
31, 1984’’ in clause (ii).
H. R. 5771—42 
(94) DISALLOWANCE OF THE BENEFITS OF THE GRADUATED 
CORPORATE RATES AND ACCUMULATED EARNINGS CREDIT.— 
(A) Subsection (a) of section 1551 is amended— 
(i) by striking paragraph (1) and by redesignating 
paragraphs (2) and (3) as paragraphs (1) and (2), 
respectively, and 
(ii) by striking ‘‘after June 12, 1963,’’ each place 
it appears. 
(B) Section 1551(b) is amended— 
(i) by striking ‘‘or (2)’’ in paragraph (1), and 
(ii) by striking ‘‘(a)(3)’’ in paragraph (2) and 
inserting ‘‘(a)(2)’’. 
(95) CREDIT FOR STATE DEATH TAXES.— 
(A)(i) Part II of subchapter A of chapter 11 is amended 
by striking section 2011 (and by striking the item relating 
to such section in the table of sections for such subpart). 
(ii) Section 2106(a)(4) is amended by striking ‘‘section 
2011(a)’’ and inserting ‘‘2058(a)’’. 
(B)(i) Subchapter A of chapter 13 is amended by 
striking section 2604 (and by striking the item relating 
to such section in the table of sections for such subpart). 
(ii) Clause (ii) of section 164(b)(4)(A) is amended by 
inserting ‘‘(as in effect before its repeal)’’ after ‘‘section 
2604’’. 
(iii) Section 2654(a)(1) is amended by striking ‘‘(com-
puted without regard to section 2604)’’. 
(96) GROSS
ESTATE.—Subsection (c) of section 2031 is 
amended by striking paragraph (3) and by amending paragraph 
(1)(B) to read as follows: 
‘‘(II) $500,000.’’. 
(97)(A) Part IV of subchapter A of chapter 11 is amended 
by striking section 2057 (and by striking the item relating 
to such section in the table of sections for such subpart). 
(B) Paragraph (10) of section 2031(c) is amended by 
inserting ‘‘(as in effect before its repeal)’’ immediately before 
the period at the end thereof. 
(98) PROPERTY WITHIN THE UNITED STATES.—Subsection (c) 
of section 2104 is amended by striking ‘‘With respect to estates 
of decedents dying after December 31, 1969, deposits’’ and 
inserting ‘‘Deposits’’. 
(99) FICA TAXES.— 
(A) Subsection (a) of section 3101 is amended by 
striking ‘‘the following percentages’’ and all that follows 
and inserting ‘‘6.2 percent of the wages (as defined in 
section 3121(a)) received by the individual with respect 
to employment (as defined in section 3121(b))’’. 
(B)(i) Subsection (a) of section 3111 is amended by 
striking ‘‘the following percentages’’ and all that follows 
and inserting ‘‘6.2 percent of the wages (as defined in 
section 3121(a)) paid by the employer with respect to 
employment (as defined in section 3121(b)).’’. 
(ii) Subsection (b) of section 3111 is amended by 
striking ‘‘the following percentages’’ and all that follows 
and inserting ‘‘1.45 percent of the wages (as defined in 
section 3121(a)) paid by the employer with respect to 
employment (as defined in section 3121(b)).’’.
H. R. 5771—43 
(C)(i) Section 3121(b) is amended by striking paragraph 
(17). 
(ii) Section 210(a) of the Social Security Act is amended 
by striking paragraph (17). 
(100) RAILROAD RETIREMENT.— 
(A) Subsection (b) of section 3201 is amended to read 
as follows: 
‘‘(b) TIER 2 TAX.—In addition to other taxes, there is hereby 
imposed on the income of each employee a tax equal to the percent-
age determined under section 3241 for any calendar year of the 
compensation received during such calendar year by such employee 
for services rendered by such employee.’’. 
(B) Subsection (b) of section 3211 is amended to read 
as follows: 
‘‘(b) TIER 2 TAX.—In addition to other taxes, there is hereby 
imposed on the income of each employee representative a tax equal 
to the percentage determined under section 3241 for any calendar 
year of the compensation received during such calendar year by 
such employee representative for services rendered by such 
employee representative.’’. 
(C) Subsection (b) of section 3221 is amended to read 
as follows: 
‘‘(b) TIER 2 TAX.—In addition to other taxes, there is hereby 
imposed on every employer an excise tax, with respect to having 
individuals in his employ, equal to the percentage determined under 
section 3241 for any calendar year of the compensation paid during 
such calendar year by such employer for services rendered to such 
employer.’’. 
(D) Subsection (b) of section 3231 is amended— 
(i) by striking ‘‘compensation; except’’ and all that 
follows in the first sentence and inserting ‘‘compensa-
tion.’’, and 
(ii) by striking the second sentence. 
(101) CREDITS AGAINST FEDERAL UNEMPLOYMENT TAX.— 
(A) Paragraph (4) of section 3302(f) is amended— 
(i) by striking ‘‘subsection—’’ and all that follows 
through ‘‘(A) IN GENERAL.—The’’ and inserting ‘‘sub-
section, the’’, 
(ii) by striking subparagraph (B), 
(iii) by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively, and 
(iv) by moving the text of such subparagraphs 
(as so redesignated) 2 ems to the left. 
(B) Paragraph (5) of section 3302(f) is amended by 
striking subparagraph (D) and by redesignating subpara-
graph (E) as subparagraph (D). 
(102) DOMESTIC
SERVICE
EMPLOYMENT
TAXES.—Section 
3510(b) is amended by striking paragraph (4). 
(103) LUXURY PASSENGER AUTOMOBILES.— 
(A) Chapter 31 is amended by striking subchapter 
A (and by striking the item relating to such subchapter 
in the table of subchapters for such chapter). 
(B)(i) Section 4221 is amended— 
(I) in subsections (a) and (d)(1), by striking ‘‘sub-
chapter A or’’ and inserting ‘‘subchapter’’,
H. R. 5771—44 
(II) in subsection (a), by striking ‘‘In the case of 
taxes imposed by subchapter A of chapter 31, para-
graphs (1), (3), (4), and (5) shall not apply.’’, and 
(III) in subsection (c), by striking ‘‘4001(c), 4001(d), 
or’’. 
(ii) Section 4222 is amended by striking ‘‘4001(c), 
4001(d),’’. 
(iii) Section 4293 is amended by striking ‘‘subchapter 
A of chapter 31,’’. 
(104) 
TRANSPORTATION
BY
AIR.—Section 
4261(e) 
is 
amended— 
(A) in paragraph (1), by striking subparagraph (C), 
and 
(B) by striking paragraph (5). 
(105) TAXES ON FAILURE TO DISTRIBUTE INCOME.— 
(A) Subsection (g) of section 4942 is amended by 
striking ‘‘For all taxable years beginning on or after 
January 1, 1975, subject’’ in paragraph (2)(A) and inserting 
‘‘Subject’’. 
(B) Section 4942(i)(2) is amended by striking ‘‘begin-
ning after December 31, 1969, and’’. 
(106) TAXES ON TAXABLE EXPENDITURES.—Section 4945(f) 
is amended by striking ‘‘(excluding therefrom any preceding 
taxable year which begins before January 1, 1970)’’. 
(107) DEFINITIONS
AND
SPECIAL
RULES.—Section 4682(h) 
is amended— 
(A) by striking paragraph (1) and redesignating para-
graphs (2), (3), and (4) as paragraphs (1), (2), and (3), 
respectively, and 
(B) in paragraph (1) (as so redesignated)— 
(i) by striking the heading and inserting ‘‘IN GEN-
ERAL’’, and 
(ii) by striking ‘‘after 1991’’ in subparagraph (C). 
(108) RETURNS.—Subsection (a) of section 6039D is 
amended by striking ‘‘beginning after December 31, 1984,’’. 
(109) INFORMATION
RETURNS.—Subsection (c) of section 
6060 is amended by striking ‘‘ ‘year’ ’’ and all that follows and 
inserting ‘‘year.’’. 
(110) COLLECTION.—Section 6302 is amended— 
(A) in subsection (e)(2), by striking ‘‘imposed by’’ and 
all that follows through ‘‘with respect to’’ and inserting 
‘‘imposed by sections 4251, 4261, or 4271 with respect 
to’’, 
(B) by striking the last sentence of subsection (f)(1), 
and 
(C) in subsection (h)— 
(i) by striking paragraph (2) and redesignating 
paragraphs (3) and (4) as paragraphs (2) and (3), 
respectively, and 
(ii) by amending paragraph (3) (as so redesignated) 
to read as follows: 
‘‘(3) 
COORDINATION
WITH
OTHER
ELECTRONIC
FUND 
TRANSFER REQUIREMENTS.—Under regulations, any tax required 
to be paid by electronic fund transfer under section 5061(e) 
or 5703(b) shall be paid in such a manner as to ensure that 
the requirements of the second sentence of paragraph (1)(A) 
of this subsection are satisfied.’’.