[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1490 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1490

To amend the Internal Revenue Code of 1986 to reduce the capital gains 
tax on individuals and to index the basis of assets of individuals for 
               purposes of determining gains and losses.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 30, 1997

 Mr. Cooksey 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 reduce the capital gains 
tax on individuals and to index the basis of assets of individuals for 
               purposes of determining gains and losses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REPEAL OF RESTRICTIONS ON TAXPAYERS HAVING MEDICAL SAVINGS 
              ACCOUNTS.

    (a) Repeal of Numerical Limitations and Termination.--
            (1) In general.--Section 220 of the Internal Revenue Code 
        of 1986 (relating to medical savings accounts) is amended by 
        striking subsections (i) and (j).
            (2) Conforming amendment.--Section 220(c)(1) of such Code 
        is amended by striking subparagraph (D).
    (b) Repeal of Restrictions on Individuals Who May Have Medical 
Savings Accounts.--
            (1) In general.--Section 220(c)(1)(A) of the Internal 
        Revenue Code of 1986 (defining eligible individual) is amended 
        by inserting ``and'' at the end of clause (i), by striking , 
        ``and'' at the end of clause (ii) and inserting a period, and 
        by striking clause (iii).
            (2) Conforming amendments.--
                    (A) Section 220(b) of such Code is amended by 
                striking paragraph (4) and by redesignating paragraphs 
                (5) and (6) as paragraphs (4) and (5), respectively.
                    (B) Section 220(c) of such is amended--
                            (i) by striking subparagraph (C) of 
                        paragraph (1), and
                            (ii) by striking paragraph (4) and by 
                        redesignating paragraph (5) as paragraph (4).
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to months beginning 
        after the date of the enactment of this Act.
            (2) Compensation limit repeal.--The amendments made by 
        subsection (b)(2)(A) shall apply to taxable years beginning 
        after December 31, 1996.
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