I 
110TH CONGRESS 
1ST SESSION H. R. 2734 
To make the Economic Growth and Tax Relief Reconciliation Act of 2001 
and certain other tax benefits permanent law. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 14, 2007 
Mr. WALBERG (for himself, Mr. ADERHOLT, Mr. AKIN, Mrs. BACHMANN, Mr. 
BARRETT of South Carolina, Mr. BARTLETT of Maryland, Mr. BILBRAY, 
Mr. BILIRAKIS, Mr. BISHOP of Utah, Mrs. BLACKBURN, Mr. BLUNT, Mr. 
BOOZMAN, Mr. BRADY of Texas, Mr. BUCHANAN, Mr. BURTON of Indi-
ana, Mr. CAMP of Michigan, Mr. CAMPBELL of California, Mr. CANTOR, 
Mr. CARTER, Mr. CHABOT, Mr. COLE of Oklahoma, Mr. CONAWAY, Mrs. 
CUBIN, Mr. CULBERSON, Mr. DAVID DAVIS of Tennessee, Mr. DAVIS of 
Kentucky, Mr. MARIO DIAZ-BALART of Florida, Mrs. DRAKE, Mr. DUN-
CAN, Ms. FALLIN, Mr. FEENEY, Mr. FLAKE, Mr. FORBES, Mr. 
FORTUN˜O, Mr. FRANKS of Arizona, Ms. FOXX, Mr. GALLEGLY, Mr. GAR-
RETT of New Jersey, Mr. GINGREY, Mr. GOHMERT, Mr. GOODLATTE, Mr. 
HELLER of Nevada, Mr. HENSARLING, Mr. HOEKSTRA, Mr. JONES of 
North Carolina, Mr. JORDAN of Ohio, Mr. KING of Iowa, Mr. KINGSTON, 
Mr. KLINE of Minnesota, Mr. KNOLLENBERG, Mr. LAMBORN, Mr. LEWIS 
of California, Mr. LINDER, Mr. MACK, Mr. MANZULLO, Mr. MCCARTHY 
of California, Mr. MCCAUL of Texas, Mr. MCHENRY, Mr. GARY G. MIL-
LER of California, Mrs. MYRICK, Mr. NEUGEBAUER, Mr. PAUL, Mr. 
PENCE, Mr. PEARCE, Mr. PITTS, Mr. POE, Mr. PRICE of Georgia, Mr. 
RADANOVICH, Mr. ROGERS of Michigan, Mr. ROSKAM, Mr. RYAN of Wis-
consin, Mr. SALI, Mr. SENSENBRENNER, Mr. SESSIONS, Mr. SHADEGG, 
Mr. SIMPSON, Mr. SMITH of Nebraska, Mr. SOUDER, Mr. WAMP, Mr. 
WELDON of Florida, Mr. WILSON of South Carolina, and Mr. LINCOLN 
DIAZ-BALART of Florida) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
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A BILL 
To make the Economic Growth and Tax Relief Reconciliation 
Act of 2001 and certain other tax benefits permanent law. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tax Increase Preven-
tion Act of 2007’’. 
SEC. 2. TAX RELIEF MADE PERMANENT. 
(a) ECONOMIC GROWTH
AND TAX RELIEF REC-
ONCILIATION ACT OF 2001.—Title IX of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 is here-
by repealed. 
(b) INCOME TAX RATES ON DIVIDENDS AND NET 
CAPITAL GAIN.—Section 303 of the Jobs and Growth Tax 
Relief Reconciliation Act of 2003 is hereby repealed. 
(c) DEDUCTION
FOR STATE
AND LOCAL SALES 
TAXES.—Paragraph (5) of section 164(b) of the Internal 
Revenue Code of 1986 is amended by striking subpara-
graph (I). 
(d) DEDUCTION FOR TUITION AND RELATED EX-
PENSES.—Section 222 of such Code is amended by strik-
ing subsection (e). 
(e) INCREASED
EXPENSING
FOR
SMALL
BUSI-
NESS.— 
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(1) DOLLAR
LIMITATION.—Paragraph (1) of 
section 179(b) of such Code (relating to dollar limi-
tation) is amended by striking ‘‘$25,000 ($125,000 
in the case of taxable years beginning after 2006 
and before 2011)’’ and inserting ‘‘$125,000’’. 
(2) INCREASE IN QUALIFYING INVESTMENT AT 
WHICH PHASEOUT BEGINS.—Paragraph (2) of sec-
tion 179(b) of such Code (relating to reduction in 
limitation) is amended by striking ‘‘$200,000 
($500,000 in the case of taxable years beginning 
after 2006 and before 2011)’’ and inserting 
‘‘$500,000’’. 
(3) 
INFLATION
ADJUSTMENTS.—Section 
179(b)(5)(A) of such Code (relating to inflation ad-
justments) is amended by striking ‘‘and before 
2011’’. 
(4) 
REVOCATION
OF
ELECTION.—Section 
179(c)(2) of such Code (relating to election irrev-
ocable) is amended by striking ‘‘and before 2011’’. 
(5) COMPUTER SOFTWARE.—Clause (ii) of sec-
tion 179(d)(1)(A) of such Code is amended by strik-
ing ‘‘and before 2011’’. 
(f) RESEARCH CREDIT.— 
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(1) IN GENERAL.—Section 41 of such Code is 
amended by striking subsection (h) (relating to ter-
mination). 
(2) CONFORMING AMENDMENT.—Paragraph (1) 
of section 45C(b) of such Code is amended by strik-
ing subparagraph (D). 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred after December 31, 2007. 
(g) EFFECTIVE DATE.—Except as provided in sub-
section (f), the amendments made by this section shall 
take effect on the date of the enactment of this Act. 
SEC. 3. SENSE OF THE CONGRESS REGARDING SIMPLI-
FYING THE FEDERAL INCOME TAX SYSTEM. 
(a) FINDINGS.—The Congress finds that— 
(1) the average time burden for all taxpayers 
filing a Form 1040 Federal income tax return is 30 
hours, 
(2) more than 6 in 10 Americans now hire 
someone to help prepare their tax returns every 
year, and 
(3) the hundreds of billions of dollars spent 
each year complying with the Federal tax system 
could be used more efficiently by families and busi-
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nesses to grow the Nation’s economy and create 
jobs. 
(b) SENSE OF CONGRESS.—It is the sense of the 
House of Representatives that the Committee on Ways 
and Means should report legislation on or before Decem-
ber 31, 2008, to simplify the Federal income tax system, 
ensuring that the system is equitable, economically effi-
cient, simple, transparent and administrable, without rais-
ing tax rates. 
Æ 
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