[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2084 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2084

   To amend the Internal Revenue Code of 1986 to provide for maximum 
   capital gains tax rates of 15, 22, and 30 percent for individuals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 26, 1997

Mr. Davis of Illinois 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 provide for maximum 
   capital gains tax rates of 15, 22, and 30 percent for individuals.

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

SECTION 1. MAXIMUM CAPITAL GAINS RATES OF 15, 22, AND 30 PERCENT FOR 
              INDIVIDUALS.

    (a) In General.--Subsection (h) of section 1 is amended to read as 
follows:
    ``(h) Minimum Capital Gains Rate.--
            ``(1) In general.--If a taxpayer has a net capital gain for 
        any taxable year, then the tax imposed by this section 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 
                the greater of--
                            ``(i) taxable income reduced by the amount 
                        of the net capital gain, or
                            ``(ii) the amount of taxable income taxed 
                        at a rate below 22 percent, plus
                    ``(B) a tax of the applicable percent of the amount 
                of taxable income in excess of the amount determined 
                under subparagraph (A).
        For purposes of the preceding sentence, 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 for the taxable year under section 
        163(d)(4)(B)(iii).
            ``(2) Applicable percent.--For purposes of paragraph (1), 
        the term `applicable percent' means--
                    ``(A) with respect to the excess of--
                            ``(i) so much of the net capital gain as 
                        does not exceed $20,000, over
                            ``(ii) the amount of net capital gain (if 
                        any) taken into account under paragraph 
                        (1)(A)(ii),
                15 percent,
                    ``(B) with respect to so much of the net capital 
                gain as exceeds $20,000 but does not exceed $40,000, 22 
                percent, and
                    ``(C) with respect to so much of the net capital 
                gain as exceeds $40,000, 30 percent.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of the enactment of this Act.
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