I 
109TH CONGRESS 
2D SESSION 
H. R. 5473 
To repeal the increase in tax on unearned income of minor children enacted 
by the Tax Increase Prevention and Reconciliation Act of 2005. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 24, 2006 
Mr. PASCRELL introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To repeal the increase in tax on unearned income of minor 
children enacted by the Tax Increase Prevention and 
Reconciliation Act of 2005. 
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 ‘‘Student Savings Act 
of 2006’’. 
SEC. 2. REPEAL OF TAX INCREASE ON UNEARNED INCOME 
OF MINOR CHILDREN. 
Section 510 of the Tax Increase Prevention and Rec-
onciliation Act of 2005 (Public Law 109–222), and the 
amendments made by such section, is hereby repealed. 
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The Internal Revenue Code of 1986 shall be applied and 
administered as if such section and amendments had never 
been enacted. 
SEC. 3. IMPOSITION OF INDIVIDUAL INCOME TAX SUR-
CHARGE. 
(a) IMPOSITION OF TAX.—Section 1 of the Internal 
Revenue Code of 1986 (relating to imposition of tax on 
individuals) is amended by adding at the end the following 
new subsection: 
‘‘(j) ADDITIONAL INCOME TAX.— 
‘‘(1) IN GENERAL.—If the adjusted gross in-
come of the taxpayer exceeds the threshold amount, 
the tax imposed by this section (determined without 
regard to this subsection) shall be increased by an 
amount equal to the applicable percentage of so 
much of the adjusted gross income as exceeds the 
threshold amount. 
‘‘(2) THRESHOLD AMOUNTS.—For purposes of 
paragraph (1), the term ‘threshold amount’ means 
$1,000,000. 
‘‘(3) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the applicable percentage for a 
taxable year shall be the percentage which the Sec-
retary shall determine will (after the application of 
paragraph (1)) result in an increase in revenues to 
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the Treasury for the taxable year in an amount 
equal to the decrease in such revenues by reason of 
the enactment of section 2 of the Student Savings 
Act of 2006. 
‘‘(4) TAX
NOT
TO
APPLY
TO
ESTATES
AND 
TRUSTS.—This subsection shall not apply to an es-
tate or trust.’’. 
(b) COORDINATION WITH MINIMUM TAX.—Section 
55(c) of such Code (defining regular tax) is amended by 
redesignating paragraph (3) as paragraph (4) and by in-
serting after paragraph (2) the following new paragraph: 
‘‘(3) COORDINATION
WITH
MINIMUM
TAX.— 
Solely for purposes of this section, section 1(j) shall 
not apply in computing the regular tax.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
(d) SECTION 15 NOT TO APPLY.—The amendments 
made by this section shall not be treated as a change in 
a rate of tax for purposes of section 15 of the Internal 
Revenue Code of 1986. 
Æ 
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