I 
108TH CONGRESS 
1ST SESSION 
H. R. 459
To amend the Internal Revenue Code of 1986 to provide economic stimulus. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 29, 2003
Mr. HAYWORTH (for himself, Mr. CRANE, Mr. CANNON, Mr. CARTER, Mr. 
ISSA, Mr. WAMP, Mr. WILSON of South Carolina, Mr. PITTS, Mr. SEN-
SENBRENNER, Mr. SOUDER, Mr. GOODE, Mr. MILLER of Florida, and 
Mr. SHAYS) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
economic stimulus.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Economic Growth Act of 2003’’. 
(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. 
SEC. 2. REDUCTION OF RATES OF TAX ON NET CAPITAL 
GAIN. 
(a) IN GENERAL.—Paragraph (1) of section 1(h) (re-
lating to maximum capital gains rate) is amended by strik-
ing ‘‘10 percent’’ and inserting ‘‘0 percent’’ and by strik-
ing ‘‘20 percent’’ and inserting ‘‘10 percent’’. 
(b) CONFORMING AMENDMENTS.—
(1) The following sections are each amended by 
striking ‘‘20 percent’’ and inserting ‘‘10 percent’’: 
(A) Section 55(b)(3)(C). 
(B) Section 1445(e)(1). 
(C) The second sentence of section 
7518(g)(6)(A). 
(D) The second sentence of section 
607(h)(6)(A) of the Merchant Marine Act, 
1936. 
(2) Section 311 of the Taxpayer Relief Act of 
1997 is amended by striking subsection (e). 
(3) Section 1(h) is amended—
(A) by striking paragraphs (2) and (9), 
(B) 
by 
redesignating 
paragraphs 
(3) 
through (8) as paragraphs (2) through (7), re-
spectively, and
(C) by redesignating paragraphs (10), 
(11), and (12) as paragraphs (8), (9), and (10), 
respectively. 
(4) Paragraph (3) of section 55(b) is amended 
by striking ‘‘In the case of taxable years beginning 
after December 31, 2000, rules similar to the rules 
of section 1(h)(2) shall apply for purposes of sub-
paragraphs (B) and (C).’’. 
(5) Paragraph (7) of section 57(a) is amended 
by striking the last sentence and by striking ‘‘42 
percent’’ and inserting ‘‘28 percent’’. 
(c) EFFECTIVE DATES.—
(1) IN
GENERAL.—Except as otherwise pro-
vided by this subsection, the amendments made by 
this section shall apply to taxable years beginning 
after December 31, 2002. 
(2) WITHHOLDING.—The amendment made by 
subsection (b)(1)(B) shall apply to amounts paid 
after the date of the enactment of this Act. 
SEC. 3. INCREASE ON AMOUNT OF CAPITAL LOSSES WHICH 
MAY OFFSET ORDINARY INCOME. 
(a) IN GENERAL.—Paragraph (1) of section 1211(b) 
(relating to limitation on capital losses for taxpayers other 
than corporations) is amended by striking ‘‘$3,000 
($1,500’’ and inserting ‘‘$10,000 (1⁄2 such amount’’.
(b) ADJUSTMENT FOR INFLATION.—Section 1211 of 
such Code (relating to limitation on capital losses) is 
amended by adding at the end the following new sub-
section: 
‘‘(c) ADJUSTMENT FOR INFLATION.—
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning in a calendar year after 2003, the 
$10,000 amount contained in subsection (b)(1) shall 
each be increased by an amount equal to—
‘‘(A) such amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins by sub-
stituting ‘calendar year 2002’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
‘‘(2) ROUNDING.—If any increase determined 
under paragraph (1) is not a multiple of $50, such 
increase shall be rounded to the next highest mul-
tiple of $50.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2002.
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