In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Safe Teen and Novice Driver Uniform 
Protection Act of 2011'' or the ``STANDUP Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The National Highway Traffic Safety Administration has 
        reported that--
                    (A) motor vehicle crashes are the leading cause of 
                death of Americans between 15 and 20 years of age;
                    (B) between 1999 and 2009, more than 90,000 
                Americans were killed in motor vehicle crashes 
                involving drivers between 15 and 20 years of age, an 
                average of 155 deaths per week;
                    (C) drivers between 16 and 20 years of age have a 
                fatality rate that is 4 times higher than the rate for 
                drivers between 25 and 70 years of age; and
                    (D) teenage drivers who are 16 years of age have a 
                motor vehicle crash rate that is almost 10 times higher 
                than the crash rate for drivers between 30 and 60 years 
                of age.
            (2) The National Transportation Safety Board found that 
        during the most recent 10-year period--
                    (A) teen drivers comprised less than 7 percent of 
                the driving population and accounted for more than 13 
                percent of drivers involved in all deadly crashes; and
                    (B) more than 20 percent of all highway fatalities 
                occurred in crashes that involved teen drivers.
            (3) Analysis by the Children's Hospital of Philadelphia 
        Research Institute shows that--
                    (A) teenage drivers comprise approximately 40 
                percent of the fatalities in motor vehicle crashes in 
                which they are involved; and
                    (B) the other 60 percent of the fatalities in those 
                crashes are--
                            (i) passengers who were riding in the 
                        vehicle with the teen driver;
                            (ii) drivers and passengers in other 
                        vehicles involved in a crash with the teen 
                        driver's vehicle; and
                            (iii) pedestrians.
            (4) According to the Insurance Institute for Highway 
        Safety--
                    (A) the chance that a vehicle driven by a 16- or 
                17-year-old will be involved in an accident--
                            (i) doubles when there are 2 other teens in 
                        the vehicle; and
                            (ii) quadruples when there are 4 teens in 
                        the vehicle;
                    (B) States with strong nighttime driving 
                restrictions experience lower fatal crash rates among 
                drivers ages 15 to 17 years old; and
                    (C) a higher age requirement for licensing teen 
                drivers is correlated with a lower number of fatal 
                crashes per capita.
            (5) The National Highway Traffic Safety Administration has 
        found that distraction caused by cellular phones is significant 
        enough to degrade driver performance, and is particularly 
        dangerous for inexperienced drivers between 15 and 20 years of 
        age.
            (6) That National Transportation Safety Board has found 
        that although only 20 percent of driving by teenage drivers 
        occurs at night, more than 50 percent of the motor vehicle 
        crash fatalities involving teenage drivers occur at night.
            (7) According to a 2007 report from the Texas 
        Transportation Institute at Texas A&M University--
                    (A) teenage drivers in rural areas are less likely 
                to be aware of the risks and dangers associated with 
                driving, placing them at higher risk of involvement in 
                crashes;
                    (B) teen drivers are more likely than other 
                drivers--
                            (i) to drive with other teenage passengers;
                            (ii) to drive late at night;
                            (iii) to exceed the speed limit;
                            (iv) to use cell phones while driving; and
                            (v) to fail to use seat belts while 
                        driving.
            (8) The National Highway Traffic Safety Administration 
        reports that although 23 percent of the population of the 
        United States lives in rural areas, 57 percent of all traffic 
        fatalities occur on rural roads, underscoring the elevated 
        crash risk for teen drivers in rural areas.
            (9) The American Academy of Pediatrics has found evidence 
        that the area of the brain responsible for planning, impulse 
        control, and executive decisionmaking does not fully mature 
        until a person is between 20 and 25 years of age, placing teen 
        drivers at greater risk of being involved in an accident.
            (10) The Journal of the American Medical Association 
        reports that after Michigan and North Carolina adopted 
        comprehensive graduated driver licensing systems in 1997, 
        crashes involving 16-year-old drivers decreased by 25 percent 
        in Michigan and by 27 percent in North Carolina.
            (11) According to the Office of the Illinois Secretary of 
        State, teen driving deaths dropped by over 40 percent in 
        Illinois in the first full year following the 2007 
        implementation of a stronger graduated driver licensing law.
            (12) The National Transportation Safety Board reports that 
        over 40 States and the District of Columbia have implemented 
        some type of 3-stage graduated driver licensing system. 
        However, most States have not yet enacted all of the lifesaving 
        safety features of graduated driver licensing laws recommended 
        by the National Transportation Safety Board and supported by 
        research to protect the lives of teenage and novice drivers.
            (13) A 2010 national survey by the Insurance Institute of 
        Highway Safety indicates that--
                    (A) parents of teens favor graduated driver 
                licensing laws that are as strict or stricter than 
                those that currently exist in any State;
                    (B) \2/3\ of parents of teens believe that young 
                drivers should begin learning to drive at 16 years of 
                age or older;
                    (C) more than \1/2\ of parents of teens believe 
                that the minimum licensing age should be 17 years of 
                age or older;
                    (D) 90 percent of parents of teens support a 
                restriction on unsupervised nighttime driving;
                    (E) more than 75 percent of parents of teens 
                believe that the restriction on unsupervised nighttime 
                driving should begin at 10 p.m. or earlier;
                    (F) 89 percent of parents of teens support 
                restrictions on teen passengers; and
                    (G) more than 75 percent of parents of teens 
                believe that teen drivers should not be permitted to 
                more than 1 teen passenger in their vehicle.

SEC. 3. STATE GRADUATED DRIVER LICENSING LAWS.

    (a) Minimum Requirements.--
            (1) In general.--A State is in compliance with this section 
        if the State has a graduated driver licensing law that requires 
        novice drivers younger than 21 years of age to comply with the 
        2-stage licensing process described in paragraph (2) before 
        receiving an unrestricted driver's license.
            (2) Licensing process.--A State is in compliance with the 
        2-stage licensing process described in this paragraph if the 
        State's driver's license laws include--
                    (A) a learner's permit stage that--
                            (i) commences at 16 years of age or older;
                            (ii) is at least 6 months in duration;
                            (iii) prohibits the driver from using a 
                        cellular telephone or any communications device 
                        in a nonemergency situation; and
                            (iv) remains in effect until--
                                    (I) the commencement of the 
                                intermediate stage; or
                                    (II) the driver reaches 18 years of 
                                age;
                    (B) an intermediate stage that--
                            (i) commences immediately after the 
                        expiration of the learner's permit stage;
                            (ii) is at least 6 months in duration;
                            (iii) prohibits the driver from using a 
                        cellular telephone or any communications device 
                        in a nonemergency situation;
                            (iv) prohibits driving at night;
                            (v) prohibits the driver from operating a 
                        motor vehicle with more than 1 non-familial 
                        passenger younger than 21 years of age unless a 
                        licensed driver who is at least 21 years of age 
                        is in the motor vehicle; and
                            (vi) remains in effect until the driver 
                        reaches 18 years of age; and
                    (C) any other requirement that the Secretary of 
                Transportation may require, including--
                            (i) in the learner's permit stage--
                                    (I) at least 40 hours of behind-
                                the-wheel training with a licensed 
                                driver who is at least 21 years of age;
                                    (II) a driver training course; and
                                    (III) a requirement that any such 
                                driver be accompanied and supervised by 
                                a licensed driver who is at least 21 
                                years of age at all times while such 
                                driver is operating a motor vehicle; 
                                and
                            (ii) in the learner's permit or 
                        intermediate stage, a requirement that, in 
                        addition to any other penalties imposed by 
                        State law, the grant of an unrestricted 
                        driver's license be automatically delayed for 
                        any individual who, during the learner's permit 
                        or intermediate stage, is convicted of a 
                        driving-related offense, such as--
                                    (I) driving while intoxicated;
                                    (II) misrepresentation of his or 
                                her true age;
                                    (III) reckless driving;
                                    (IV) driving without wearing a seat 
                                belt;
                                    (V) speeding; or
                                    (VI) any other driving-related 
                                offense, as determined by the 
                                Secretary.
    (b) Rulemaking.--
            (1) In general.--The Secretary of Transportation shall 
        promulgate regulations necessary to implement this section in 
        accordance with the notice and comment provisions under section 
        553 of title 5, United States.
            (2) Exception.--A State that otherwise meets the minimum 
        requirements set forth in subsection (a) shall be deemed by the 
        Secretary to be in compliance with this section regardless of 
        whether a State law, which was enacted by the State before 
        January 1, 2011, establishes a class of license that permits 
        licensees younger than 18 years of age to drive a motor vehicle 
        in connection with work performed on or for the operation of a 
        farm owned by family members who are directly related to the 
        licensees.

SEC. 4. INCENTIVE GRANTS.

    (a) In General.--For each of the first 3 fiscal years beginning 
after the date of enactment of this Act, the Secretary of 
Transportation shall award a grant to any State that submits an 
application under subsection (b) if that State is in compliance with 
section 3(a) on or before the first day of that fiscal year.
    (b) Application.--
            (1) In general.--Any State desiring a grant under this 
        section shall submit an application to the Secretary of 
        Transportation at such time, in such manner, and containing 
        such information as the Secretary may require, including a 
        certification by the Governor of the State that the State is in 
        compliance with section 3(a).
            (2) Review.--The Secretary shall review each State 
        application and determine whether or not the State is in 
        compliance with section 3(a).
    (c) Grants.--Amounts appropriated to carry out this section for 
each fiscal year shall be apportioned to each State that is in 
compliance with section 3(a) in an amount determined by multiplying--
            (1) the amount appropriated to carry out this section for 
        such fiscal year; by
            (2) the ratio that the amount of funds apportioned to each 
        such State for such fiscal year under section 402 of title 23, 
        United States Code, bears to the total amount of funds 
        apportioned to all such States for such fiscal year under such 
        section.
    (d) Use of Funds.--Amounts received by a State from a grant awarded 
under this section may be used for--
            (1) enforcing a 2-stage licensing process that complies 
        with section 3(a)(2);
            (2) training for law enforcement personnel and other 
        relevant State agency personnel relating to the enforcement 
        described in paragraph (1);
            (3) publishing relevant educational materials that pertain 
        directly or indirectly to the State graduated driver licensing 
        law; and
            (4) carrying out other administrative activities that the 
        Secretary considers relevant to the State's 2-stage licensing 
        process.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated $25,000,000, out of the Highway Trust Fund (other than the 
Mass Transit Account), to carry out this section during each fiscal 
year described in subsection (a).

SEC. 5. WITHHOLDING OF FUNDS FOR NONCOMPLIANCE.

    (a) In General.--
            (1) Fourth fiscal year.--On the first day of the fourth 
        fiscal year beginning after the date of the enactment of this 
        Act, the Secretary shall withhold 3 percent of the amount 
        otherwise required to be apportioned to any State for such 
        fiscal year under each of the paragraphs (1), (3), and (4) of 
        section 104(b) of title 23, United States Code, if the State is 
        not in compliance with section 3(a) on the first day of such 
        fiscal year.
            (2) Fifth fiscal year.--On the first day of the fifth 
        fiscal year beginning after the date of the enactment of this 
        Act, the Secretary shall withhold 5 percent of the amount 
        otherwise required to be apportioned to any State for such 
        fiscal year under each of the paragraphs (1), (3), and (4) of 
        section 104(b) of title 23, United States Code, if that State 
        is not in compliance with section 3(a) on the first day of such 
        fiscal year.
            (3) Sixth and subsequent fiscal years.--On the first day of 
        each fiscal year after the fifth fiscal year beginning after 
        the date of the enactment of this Act, the Secretary shall 
        withhold 10 percent of the amount otherwise required to be 
        apportioned to any State for such fiscal year under each of the 
        paragraphs (1), (3), and (4) of section 104(b) of title 23, 
        United States Code, if that State is not in compliance with 
        section 3(a) on the first day of such fiscal year.
    (b) Period of Availability of Withheld Funds.--
            (1) Funds withheld before the end of the sixth fiscal 
        year.--Any amount withheld from any State under subsection (a) 
        on or before the last day of the sixth fiscal year beginning 
        after the date of the enactment of this Act, shall remain 
        available for distribution to the State under subsection (c) 
        until the end of the third fiscal year following the fiscal 
        year for which such amount is appropriated.
            (2) Funds withheld after the sixth fiscal year.--Any amount 
        withheld under subsection (a)(2) from any State after the end 
        of the sixth fiscal year beginning after the date of the 
        enactment of this Act, may not be distributed to the State.
    (c) Apportionment of Withheld Funds After Compliance.--
            (1) In general.--If, before the last day of the period for 
        which funds withheld under subsection (a) remain available to a 
        State under subsection (b), the State comes into compliance 
        with section 3(a), the Secretary of Transportation shall, on 
        the first day on which the Secretary determines the State has 
        come into compliance, distribute to the State any amounts 
        withheld under subsection (a) that remains available for 
        apportionment to the State.
            (2) Period of availability of subsequently apportioned 
        funds.--Any amount distributed under paragraph (1) shall remain 
        available for expenditure by the State until the end of the 
        third fiscal year following the year for which the funds are so 
        apportioned. Any amount not expended by the State by the end of 
        such period shall revert back to the Treasury of the United 
        States.
            (3) Effect of noncompliance.--If a State is not in 
        compliance with section 3(a) at the end of the period for which 
        any amount withheld under subsection (a) remains available for 
        distribution to the State under subsection (b), such amount 
        shall revert back to the Treasury of the United States.

A: Safe Teen and Novice Driver Uniform Protection Act of 2011 or STANDUP Act - Authorizes the Secretary of Transportation to award incentive grants to states with graduated driver licensing laws that require novice drivers younger than age 21 to comply with a two-stage licensing process before receiving an unrestricted driver's license.

Requires such laws, at a minimum, to include: (1) a learner's permit stage that commences at age 16 or older, lasts at least six months, prohibits driver use of a cellular phone or other communications device in nonemergency situations, and remains in effect until commencement of the intermediate stage or the driver attains age 18; (2) an intermediate stage in effect until the driver attains age 18 that commences immediately after expiration of the learner's permit stage, lasts at least six months, prohibits driver use of a cellular phone or other communications device in nonemergency situations, prohibits nighttime driving, prohibits more than one non-familial passenger under age 21 unless there is a licensed driver at least age 21 present in the vehicle; and (3) any other requirement that the Secretary may require.

Deems a state that meets such minimum requirements to be in compliance regardless of whether a state law, enacted before January 1, 2011, establishes a class of license that permits licensees younger than age 18 to drive a motor vehicle in connection with work performed on or for the operation of a farm owned by family members of the licensees.

Directs the Secretary to withhold a certain percentage of federal-aid highway funds from states that do not comply with the requirements of this Act.
****
Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Restore Fiscal Discipline and 
Safeguard Social Security Act of 2002''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) When Congress enacted the fiscal year 2002 budget 
        resolution, it did so based on the assurance that the 
        Government would balance the budget without relying on social 
        security surpluses for the remainder of the decade and beyond. 
        Congress was also assured that it would not have to act to 
        increase the statutory debt limit until 2008.
            (2) The Government is projected to run on-budget deficits 
        that will require it to spend the social security and medicare 
        trust fund surpluses for the rest of the decade, even before 
        additional spending for defense and homeland security is 
        counted, and after the economy recovers and returns to strong 
        growth.
            (3) The total debt is increasing because we have not kept 
        the commitment to save the social security and medicare trust 
        fund surpluses. The Secretary of the Treasury has formally 
        requested that Congress increase the statutory limit on the 
        public debt by $750 billion, from the current level of $5.95 
        trillion to $6.70 trillion. Congress will have to vote to raise 
        the debt limit because we have been borrowing those trust fund 
        surpluses to cover a deficit in the rest of the budget instead 
        of saving them.
            (4) A $750 billion increase in the debt limit would be the 
        second largest increase in history and is irresponsible in the 
        absence of a framework to protect taxpayers from even further 
        increases in the national debt.
            (5) Congress should authorize a limited increase in the 
        debt limit to prevent a financial default, but should also work 
        together with the President to develop a plan to restore fiscal 
        discipline before further increasing our debt.
            (6) Current law provides for enforcement of budget 
        resolutions:
                    (A) Legislation violating discretionary spending 
                totals set in a budget resolution or the suballocations 
                set by the Committee on Appropriations is subject to a 
                point of order under section 302(f) of the 
                Congressional Budget Act of 1974.
                    (B) Legislation reducing receipts below a budget 
                resolution's total is subject to a point of order under 
                section 311(a) of the Congressional Budget Act of 1974.
    (b) Purpose.--The purpose of this Act is--
            (1) to provide a responsible, measured increase in the debt 
        limit to ensure that the Government meets its current legal 
        obligations;
            (2) effective immediately thereafter, to limit strictly the 
        size of further increases in the debt limit until the enactment 
        of a plan to bring the budget into balance in five years 
        without reliance on the social security trust fund surplus, 
        such that any larger increase in the debt limit this fall would 
        require a plan to balance the budget in fiscal year 2007, but 
        if this deficit reduction should prove insufficient, the 
        restrictions are automatically reestablished by the next 
        regular semi-annual report of the Congressional Budget Office;
            (3) to require that the President submit a budget plan 
        before the end of this fiscal year to achieve balance, without 
        reliance on the social security trust fund surplus, by fiscal 
        year 2007;
            (4) as a backup and discipline for these debt limit 
        provisions, to establish points of order against any budget 
        resolution that does not within five years and in all 
        subsequent years eliminate any deficits projected by the 
        Congressional Budget Office, without reliance on the social 
        security trust fund surplus, using the enforcement provisions 
        in current law to require that all subsequent spending and tax 
legislation conform to the budget resolution's deficit-reduction plan; 
and
            (5) thereby to restore fiscal discipline and to preserve 
        social security for future retirees.

                    TITLE I--INCREASE IN DEBT LIMIT

SEC. 101. INCREASE IN DEBT LIMIT.

    (a) Increase in Statutory Debt Limit.--Section 3101(b) of title 31, 
United States Code, is amended by striking ``$5,950,000,000,000'' and 
inserting ``$6,100,000,000,000''.
    (b) Point of Order.--(1) Effective immediately, except as provided 
by paragraph (2) or (3), it shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment, or conference report that includes any provision that 
increases the limit on the public debt above the limit set forth in 
section 3101(b) of title 31, United States Code, as in effect 
immediately before the date of consideration of that measure by more 
than $100,000,000,000.
    (2) Except as provided by paragraph (3), any bill or joint 
resolution may carry an increase in such limit of more than 
$100,000,000,000 only if the concurrent resolution on the budget for 
the budget year has been adopted and--
            (A) sets forth or assumes a budget that is in on-budget 
        balance or surplus within 4 fiscal years after the budget year 
        and is in on-budget balance or surplus for every subsequent 
        fiscal year covered by that resolution; and
            (B) does not contain any reduction in social security 
        benefits.
    (3) Paragraphs (1) and (2) shall not apply in the House of 
Representatives or the Senate if the chairman of the Committee on the 
Budget of the House or of the Senate, as applicable, certifies, based 
on the report of the Congressional Budget Office pursuant to section 
202(e)(1) or (2) of the Congressional Budget Act of 1974, whichever 
report is the most recent, that the budget will be in on-budget balance 
or surplus within 4 fiscal years after the budget year and is in on-
budget balance or surplus for every subsequent fiscal year covered by 
that report. If legislation to extend the discretionary spending limits 
beyond fiscal year 2002 is enacted before the date of release of such 
report, the Congressional Budget Office shall assume such discretionary 
spending levels. Any such certification shall only have force and 
effect until the date of submission of the next report under either 
such section.

SEC. 102. PRESIDENTIAL PLAN TO BALANCE THE BUDGET.

    (a) Presidential Plan.--The President shall submit to the Congress 
by September 30, 2002, a proposal to bring the budget of the Government 
(excluding the receipts and disbursements of the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal Disability Insurance 
Trust Fund) into balance or surplus by fiscal year 2007.
    (b) Sense of Congress.--It is the sense of Congress that the plan 
described in subsection (a) should be based on the most recent economic 
and technical assumptions of the Congressional Budget Office.

          TITLE II--CIRCUIT BREAKER TO PROTECT SOCIAL SECURITY

SEC. 201. CIRCUIT BREAKER TO PROTECT SOCIAL SECURITY.

    (a) Circuit Breaker Points of Order.--(1) Effective January 1, 
2003, whenever the most recent report of the Congressional Budget 
Office pursuant to section 202(e)(1) of the Congressional Budget Act of 
1974 projects an on-budget deficit for any fiscal year, it shall not be 
in order in the House of Representatives or the Senate to consider any 
concurrent resolution on the budget that--
            (A) sets forth or assumes an on-budget deficit for any such 
        fiscal year that is larger than such Congressional Budget 
        Office projection for that fiscal year;
            (B) sets forth or assumes a budget that is not in on-budget 
        balance or surplus within 4 fiscal years after the budget year 
        and is not in on-budget balance or surplus for any subsequent 
        fiscal year covered by that resolution; or
            (C) contains any reduction in social security benefits.
    (2) Effective January 1, 2003, whenever the most recent report of 
the Congressional Budget Office pursuant to section 202(e)(1) of the 
Congressional Budget Act of 1974 projects both on-budget surpluses (or 
a balanced budget) and deficits for the fiscal years included in that 
report, it shall not be in order in the House of Representatives or the 
Senate to consider any concurrent resolution on the budget that--
            (A) sets forth or assumes an on-budget deficit for any 
        fiscal year for which such Congressional Budget Office 
        projection for that fiscal year is for an on-budget surplus or 
        balance; or
            (B) contains any reduction in social security benefits.
    (b) Suspension of Requirement During War or Low Economic Growth.--
            (1) Low growth.--If the most recent of the Department of 
        Commerce's advance, preliminary, or final reports of actual 
        real economic growth indicate that the rate of real economic 
        growth (as measured by real GDP) for each of the most recently 
        reported quarter and the immediately preceding quarter is less 
        than 1 percent, this section is suspended.
            (2) War.--If a declaration of war is in effect, this 
        section is suspended.

A: Restore Fiscal Discipline and Safeguard Social Security Act of 2002 - Amends Federal money and finance law to increase the statutory debt limit to $6.1 trillion.Makes it out of order for the House of Representatives or the Senate to consider any bill or amendment that increases the public debt limit above the new one established by this Act by more than $100 billion, except in specified circumstances.Directs the President to submit to Congress a proposal to bring the budget of the Government (excluding the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund) into balance or surplus by FY 2007.Makes it out of order for the House or the Senate, whenever the most recent CBO report projects an on-budget deficit for any fiscal year, to consider any concurrent resolution on the budget that: (1) sets forth or assumes an on-budget deficit for any such fiscal year larger than such projection; (2) sets forth or assumes a budget that is not in on-budget balance or surplus within four fiscal years, and is not in on-budget balance or surplus for any covered subsequent fiscal year; or (3) contains any reduction in social security benefits.Makes it out of order for the House or the Senate, whenever the most recent CBO report projects both on-budget surpluses (or a balanced budget) and deficits for the fiscal years concerned, to consider any concurrent resolution on the budget that: (1) sets forth or assumes an on-budget deficit for any fiscal year for which the CBO projection is for an on-budget surplus or balance; or (2) contains any reduction in social security benefits.Suspends such requirements during war or low economic growth.
****
Q: SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``Small Business/
Family Farm and Investment Fairness Act of 1997''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment 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 
provision of the Internal Revenue Code of 1986.

SEC. 2. PHASEOUT OF CAPITAL GAINS RATE FOR INDIVIDUALS.

    (a) In General.--Subsection (h) of section 1 (relating to maximum 
capital gains rate) is amended to read as follows:
    ``(h) Maximum Capital Gains Rate.--
            ``(1) In general.--If a taxpayer has a net capital gain for 
        any taxable year, the tax imposed by this section for such 
        taxable year shall not exceed the sum of--
                    ``(A) a tax computed at the rates and in the same 
                manner as if this subsection had not been enacted on 
                taxable income reduced by the net capital gain, plus
                    ``(B) a tax equal to the applicable percentage of 
                the net capital gain.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the term `applicable percentage' means the percentage 
        determined in accordance with the following table:
                                                         The applicable
For taxable years beginning in:                          percentage is:
    1997..........................................               14    
    1998..........................................               13    
    1999..........................................               12    
    2000..........................................               11    
    2001..........................................               10    
    2002..........................................                9    
    2003..........................................                8    
    2004..........................................                7    
    2005..........................................                6    
    2006..........................................                5    
    2007..........................................                4    
    2008..........................................                3    
    2009..........................................                2    
    2010..........................................                1    
    2011 or thereafter............................               0.    
            ``(3) Net capital gain taken into account as investment 
        income.--For purposes of this subsection, the net capital gain 
        for any taxable year shall be reduced (but not below zero) by 
        the amount which the taxpayer elects to take into account as 
        investment income under section 163(d)(4)(B)(iii).''
    (b) Minimum Tax.--
            (1) In general.--Subparagraph (A) of section 55(b)(1) is 
        amended by redesignating clauses (ii) and (iii) as clauses 
        (iii) and (iv), respectively, and by inserting after clause (i) 
        the following new clause:
                            ``(ii) Maximum rate of tax on net capital 
                        gain.--The amount determined under the first 
                        sentence of clause (i) shall not exceed the sum 
                        of--
                                    ``(I) the amount determined under 
                                such first sentence computed at the 
                                rates and in the same manner as if this 
                                clause had not been enacted on the 
                                taxable excess reduced by the net 
                                capital gain, plus
                                    ``(II) a tax equal to the 
                                applicable percentage (as defined in 
                                section 1(h)) of the lesser of the net 
                                capital gain or the taxable excess.''
            (2) Conforming amendment.--Clause (iii) of section 
        55(a)(1)(A) (as redesignated by paragraph (1)) is amended by 
        striking ``clause (i)'' and inserting ``this subparagraph''.
    (c) Conforming Amendments.--
            (1) Section 1202 (relating to 50-percent exclusion for gain 
        from certain small business stock) is hereby repealed.
            (2)(A) Subsection (a) of section 57 is amended by striking 
        paragraph (7).
            (B) Subclause (II) of section 53(d)(1)(B)(ii) is amended by 
        striking ``, (5), and (7)'' and inserting ``and (5)''.
            (3) Paragraph (1) of section 170(e) of such Code is 
        amended--
                    (A) by striking ``the amount of gain'' in the 
                material following subparagraph (B)(ii) and inserting 
                ``the appropriate percentage of the amount of gain'', 
                and
                    (B) by adding at the end the following new 
                sentence: ``For purposes of subparagraph (B), the term 
                `appropriate percentage' means the percentage equal to 
                the fraction the numerator of which is the applicable 
                percentage under section 1(h) or 1201(b) (whichever is 
                appropriate) over 28 percent (35 percent in the case of 
                a corporation).''
            (4) Paragraph (2) of section 172(d) is amended to read as 
        follows:
            ``(2) Capital gains and losses of taxpayers other than 
        corporations.--In the case of a taxpayer other than a 
        corporation, the amount deductible on account of losses from 
        sales or exchanges of capital assets shall not exceed the 
        amount includible on account of gains from sales or exchanges 
        of capital assets.''
            (5) Paragraph (4) of section 642(c) is amended by striking 
        the first sentence.
            (6) Paragraph (3) of section 643(a) is amended by striking 
        the last sentence.
            (7) Paragraph (4) of section 691(c) is amended by striking 
        ``1202,''.
            (8) The second sentence of section 871(a)(2) is amended by 
        striking ``such gains and losses shall be determined without 
        regard to section 1202 and''.
            (9) Subsection (a) of section 1044 is amended by striking 
        the last sentence.
            (10) Paragraph (1) of section 1445(e) is amended by 
        striking ``28 percent'' and inserting ``the applicable 
        percentage under section 1(h)''.
            (11) Section 6652 is amended by striking subsection (k) and 
        by redesignating subsections (l) and (m) as subsections (k) and 
        (l), respectively.
            (12)(A) The second sentence of section 7518(g)(6)(A) is 
        amended by striking ``28 percent'' and all that follows and 
        inserting ``the applicable percentage under the appropriate 
        such section.''.
            (B) The second sentence of section 607(h)(6)(A) of the 
        Merchant Marine Act, 1936 is amended by striking ``28 percent'' 
        and all that follows and inserting ``the applicable percentage 
        under the appropriate such section.''.
            (13) The table of sections for part I of subchapter P of 
        chapter 1 is amended by striking the item relating to section 
        1202.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 1996.
            (2) Withholding.--The amendment made by subsection (c)(10) 
        shall apply to amounts paid after the date of the enactment of 
        this Act.

SEC. 3. PHASEDOWN OF CAPITAL GAINS RATE FOR CORPORATIONS.

    (a) In General.--Section 1201 is amended to read as follows:

``SEC. 1201. ALTERNATIVE TAX FOR CORPORATIONS.

    ``(a) General Rule.--If for any taxable year a corporation has a 
net capital gain, then, in lieu of the tax imposed by sections 11, 511, 
and 831 (a) and (b) (whichever is applicable), there is hereby imposed 
a tax (if such tax is less than the tax imposed by such sections) which 
shall consist of the sum of--
            ``(1) a tax computed on the taxable income reduced by the 
        amount of the net capital gain, at the rates and in the manner 
        as if this subsection had not been enacted, plus
            ``(2) a tax equal to the applicable percentage of the net 
        capital gain.
    ``(b) Applicable Percentage.--For purposes of paragraph (1), the 
term `applicable percentage' means the percentage determined in 
accordance with the following table:
                                                         The applicable
For taxable years beginning in:                          percentage is:
    1997..........................................               28    
    1998..........................................               27    
    1999..........................................               26    
    2000..........................................               25    
    2001..........................................               24    
    2002..........................................               23    
    2003..........................................               22    
    2004..........................................               21    
    2005..........................................               20    
    2006..........................................               19    
    2007..........................................               18    
    2008..........................................               17    
    2009..........................................               16    
    2010..........................................               15    
    2011 or thereafter............................              14.    
    ``(c) Cross References.--

                                ``For computation of the alternative 
tax--
                                  ``(1) in the case of life insurance 
companies, see section 801(a)(2),
                                  ``(2) in the case of regulated 
investment companies and their shareholders, see section 852(b)(3) (A) 
and (D), and
                                  ``(3) in the case of real estate 
investment trusts, see section 857(b)(3)(A).''

    (b) Minimum Tax.--Subparagraph (B) of section 55(b)(1) is amended 
to read as follows:
                    ``(B) Corporations.--
                            ``(i) In general.--In the case of a 
                        corporation, the tentative minimum tax for the 
                        taxable year is--
                                    ``(I) 20 percent of so much of the 
                                alternative minimum taxable income for 
                                the taxable year as exceeds the 
                                exemption amount, reduced by
                                    ``(II) the alternative minimum tax 
                                foreign tax credit for the taxable 
                                year.
                            ``(ii) Maximum rate of tax on net capital 
                        gain.--If for any taxable year the applicable 
                        percentage under section 1201(b) is less than 
                        20 percent, the amount determined under 
                        subclause (I) of clause (i) for such taxable 
                        year shall not exceed the sum of--
                                    ``(I) the amount determined under 
                                such subclause computed at the rates 
                                and in the same manner as if this 
                                clause had not been enacted on the 
                                excess described in such subclause 
                                reduced by the net capital gain, plus
                                    ``(II) a tax equal to the 
                                applicable percentage (as defined in 
                                section 1201(b)) of the lesser of the 
                                net capital gain or such excess.''
    (c) Technical Amendments.--
            (1) Clause (iii) of section 852(b)(3)(D) is amended--
                    (A) by striking ``65 percent'' and inserting ``the 
                appropriate percentage'', and
                    (B) by adding at the end the following new 
                sentence: ``For purposes of this clause, the term 
                `appropriate percentage' means the percentage equal to 
                the excess of 100 percent over the applicable 
                percentage under section 1201(b).''
            (2) Subsection (e) of section 1445 is amended by striking 
        ``35 percent'' each place it appears and inserting ``the 
        applicable percentage under section 1201(b)''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        ending after December 31, 1996.
            (2) Withholding.--The amendment made by subsection (c)(2) 
        shall apply to amounts paid after the date of the enactment of 
        this Act.
    (e) Transitional Rule.--
            (1) In general.--In the case of any taxable year ending 
        after December 31, 1996, and beginning on or before such date, 
        paragraph (2) of section 1201(a) of the Internal Revenue Code 
        of 1986 (as amended by this section) shall be applied as if it 
        read as follows:
            ``(2) the sum of--
                    ``(A) a tax of 28 percent of the lesser of--
                            ``(i) the net capital gain for the taxable 
                        year, or
                            ``(ii) the net capital gain taking into 
                        account only gain or loss properly taken into 
                        account for the portion of the taxable year 
                        after December 31, 1996, plus
                    ``(B) a tax of 35 percent of the excess of--
                            ``(i) the net capital gain for the taxable 
                        year, over
                            ``(ii) the amount of net capital gain taken 
                        into account under subparagraph (A).''
            (2) Special rule for pass-thru entities.--
                    (A) In general.--In applying paragraph (1) with 
                respect to any pass-thru entity, the determination of 
                when gains and losses are properly taken into account 
                shall be made at the entity level.
                    (B) Pass-thru entity defined.--For purposes of 
                subparagraph (A), the term ``pass-thru entity'' means--
                            (i) a regulated investment company,
                            (ii) a real estate investment trust,
                            (iii) an S corporation,
                            (iv) a partnership,
                            (v) an estate or trust, and
                            (vi) a common trust fund.

SEC. 4. INCREASE IN UNIFIED ESTATE AND GIFT TAX CREDIT.

    (a) In General.--
            (1) Subsection (a) of section 2010 (relating to unified 
        credit against estate tax) is amended by striking ``$192,800'' 
        and inserting ``the applicable credit amount''.
            (2) Section 2010 is amended by redesignating subsection (c) 
        as subsection (d) and by inserting after subsection (b) the 
        following new subsection:
    ``(c) Applicable Credit Amount.--For purposes of this section, the 
applicable credit amount is the amount of the tentative tax which would 
be determined under the rate schedule set forth in section 2001(c) if 
the amount with respect to which such tentative tax is to be computed 
were $1,000,000.''
            (3) Paragraph (1) of section 6018(a) is amended by striking 
        ``$600,000'' and inserting ``$1,000,000''.
            (4) Paragraph (2) of section 2001(c) is amended by striking 
        ``$21,040,000'' and inserting ``the amount at which the average 
        tax rate under this section is 55 percent''.
            (5) Subparagraph (A) of section 2102(c)(3) is amended by 
        striking ``$192,800'' and inserting ``the applicable credit 
        amount under section 2010(c)''.
    (b) Unified Gift Tax Credit.--Paragraph (1) of section 2505(a) is 
amended by striking ``$192,800'' and inserting ``the applicable credit 
amount under section 2010(c)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to the estates of decedents dying, and gifts made, after the date 
of the enactment of this Act.

SEC. 5. INCREASE IN MAXIMUM BENEFIT UNDER SPECIAL ESTATE TAX VALUATION 
              RULES FOR CERTAIN FARM, ETC., REAL PROPERTY.

    (a) In General.--Paragraph (2) of section 2032A(a) (relating to 
limitation on aggregate reduction in fair market value) is amended by 
striking ``$750,000'' and inserting ``$1,000,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to decedents dying after the date of the enactment of this Act.

A:
Small Business-Family Farm and Investment Fairness Act of 1997 - Amends the Internal Revenue Code to:  (1) phaseout the capital gains tax for individuals; (2) phasedown the capital gains rate for corporations; (3) increase the unified estate and gift tax credit; and (5) increase the maximum benefit under the special estate tax valuation rules for certain real and farm property.
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