I
106TH CONGRESS
1ST SESSION
H. R. 1440
To amend the Internal Revenue Code of 1986 to reduce the 15 and 28
percent individual income tax rates to 10 and 23 percent over a 10
year period.
IN THE HOUSE OF REPRESENTATIVES
APRIL 15, 1999
Mr. GREENWOOD (for himself, Mr. OSE, Mr. ENGLISH, and Mr. HORN) 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
the 15 and 28 percent individual income tax rates to
10 and 23 percent over a 10 year period.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Tax Rate Reduction Act of 1999’’.
(b) SECTION 15 NOT TO APPLY.—The amendments
made by section 2 shall not be treated as a change in a
rate of tax for purposes of section 15 of the Internal Rev-
enue Code of 1986.
SEC. 2. 5 PERCENTAGE POINT REDUCTION IN 15 AND 28
PERCENT INDIVIDUAL INCOME TAX RATES
OVER 10 YEARS.
(a) IN GENERAL.—Section 1 of the Internal Revenue
Code of 1986 (relating to tax imposed) is amended by
striking subsections (a) through (e) and inserting the fol-
lowing:
‘‘(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 $43,050 ..........................
14.5% of taxable income.
Over 
$43,050 
but 
not 
over
$104,050.
$6,242.25, plus 27.5% of the excess
over $43,050
Over 
$104,050 
but 
not 
over
$158,550.
$23,017.25, plus 31% of the excess
over $104,050
Over 
$158,550 
but 
not 
over
$283,150.
$39,912.25, plus 36% of the excess
over $158,550
Over $283,150................ ...............
$84,768.25, 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:
substituted for 14.5% and 27.5%, respectively, in
subsections (a), (b), (c), (d), and (e).
In the case of taxable years
beginning during calendar year:
The corresponding
percentage shall
be substituted for
the following per-
centages:
14.5%
27.5%
2000 .....................................................................
14.0%
27.0%
2001 .....................................................................
13.5%
26.5%
2002 .....................................................................
13.0%
26.0%
2003 .....................................................................
12.5%
25.5%
2004 .....................................................................
12.0%
25.0%
2005 .....................................................................
11.5%
24.5%
2006 .....................................................................
11.0%
24.0%
2007 .....................................................................
10.5%
23.5%
2008 or thereafter ................................................
10.0%
23.0%.’’
(2) TECHNICAL AMENDMENTS.—
(A) Subparagraph (B) of section 1(f)(2) of
such Code is amended by inserting ‘‘except as
provided in paragraph (7),’’ before ‘‘by not
changing’’.
(B) Subparagraph (C) of section 1(f)(2) of
such Code is amended by inserting ‘‘and the re-
ductions under paragraph (7) in the rates of
tax’’ before the period.
(C) The heading for subsection (f) of sec-
tion 1 of such Code is amended by inserting
‘‘RATE REDUCTIONS;’’ before ‘‘ADJUSTMENTS’’.
(D) Subparagraph (B) of section 1(g)(7)
of such Code is amended—
(i) by striking ‘‘15 percent’’ in clause
(ii)(II) and inserting ‘‘the applicable first
bracket percentage’’, and
(ii) by adding at the end the following
flush sentence:
‘‘For purposes of clause (ii), the applicable first
bracket percentage is the percentage applicable
to the lowest income bracket in the table con-
tained in subsection (c).’’
(E) 
Section 
1(h) 
of 
such 
Code 
is
amended—
(i) by striking ‘‘28 percent’’ both
places 
it 
appears 
in 
paragraphs
(1)(A)(ii)(I) and (1)(B)(i) and inserting
‘‘23 percent’’, and
(ii) by striking paragraph (13).
(F) Section 3402(p)(1)(B) of such Code is
amended by striking ‘‘7, 15, 28, or 31 percent’’
and inserting ‘‘7 percent, a percentage applica-
ble to any income bracket in the table contained
in section 1(c) other than the highest 2 brack-
ets,’’.
(G) Section 3402(p)(2) of such Code is
amended by striking ‘‘15 percent’’ and inserting
‘‘the applicable first bracket percentage (as de-
fined in section 1(g)(7))’’.
(H) Section 3402(q)(1) of such Code is
amended by striking ‘‘28 percent of such pay-
ment.’’ and inserting ‘‘the applicable percentage
of such payment. For purposes of the preceding
sentence, the applicable percentage is the per-
centage applicable to the next to the lowest in-
come bracket in the table contained in section
1(c).’’
(c) INFLATION ADJUSTMENT CONFORMING AMEND-
MENTS.—
(1) Subsection (f) of section 1 of such Code is
amended—
(A) by striking ‘‘1993’’ in paragraph (1)
and inserting ‘‘1999’’, and
(B) by striking ‘‘1992’’ in paragraph
(3)(B) and inserting ‘‘1998’’.
(2) The following provisions of such Code 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) of
such Code is amended by striking ‘‘1987’’ and in-
serting ‘‘1998’’.
(d) 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, 1998.
(2) AMENDMENTS
TO
WITHHOLDING
PROVI-
SIONS.—The amendments made by subparagraphs
(F), (G), and (H) of subsection (b)(2) shall apply to
amounts paid after the date of the enactment of this
Act.
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