[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 281 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 281

  To amend the Internal Revenue Code of 1986 to reinstate the tax on 
   interest received by foreigners on certain portfolio investments.


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                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

  Mr. Jacobs introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to reinstate the tax on 
   interest received by foreigners on certain portfolio investments.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, amend the Internal 
Revenue Code of 1986 to reinstate the tax on interest received by 
foreigners on certain portfolio investments.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That (a) the following 
provisions of the Internal Revenue Code of 1986 are hereby repealed:
            (1) Section 871(h) (relating to repeal of tax on interest 
        of nonresident alien individuals received from certain 
        portfolio debt investments).
            (2) Section 881(c) (relating to repeal of tax on interest 
        of foreign corporations received from certain portfolio debt 
        instruments).
            (3) Section 1441(c)(9) (relating to exception for interest 
        income from certain portfolio debt investments).
    (b)(1) Paragraph (1) of section 871(a) of such Code is amended by 
striking ``Except as provided in subsection (h), there'' and inserting 
``There''.
    (2) Subsection (a) of section 881 of such Code is amended by 
striking ``Except as provided in subsection (c), there'' and inserting 
``There''.
    (3) Paragraph (2) of section 864(c) of such Code is amended by 
striking ``section 871(a)(1), section 871(h), section 881(a), or 
section 881(c)'' and inserting ``section 871(a)(1) or 881(a)''.
    (4) Subsection (b) of section 2105 of such Code is amended--
            (A) by inserting ``and'' at the end of paragraph (1),
            (B) by striking ``and'' at the end of paragraph (2) and 
        inserting a period,
            (C) by striking paragraph (3), and
            (D) by striking ``and Certain Other Debt Obligations'' in 
        the subsection heading.
    (5) The last sentence of section 1442(a) of such Code is amended by 
striking ``, the references in section 1441(c)(9) to sections 871(h) 
and 871(h)(3) shall be treated as referring to sections 881(c) and 
881(c)(3)''.
    (c) The amendments made by this section shall apply to interest 
received after the date of the enactment of this Act with respect to 
obligations issued after such date.
                                 <all>