[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 340 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 340

To amend the Internal Revenue Code of 1986 to repeal the withholding of 
  income taxes and to require individuals to pay estimated taxes on a 
                             monthly basis.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 1997

 Mr. Stearns 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 repeal the withholding of 
  income taxes and to require individuals to pay estimated taxes on a 
                             monthly basis.

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

SECTION 1. REPEAL OF INCOME TAX WITHHOLDING.

    (a) In General.--Chapter 24 of the Internal Revenue Code of 1986 
(relating to withholding from wages) is amended by adding at the end 
the following new section:

``SEC. 3407. TERMINATION.

    ``No tax shall be imposed by this chapter on any amount paid after 
December 31, 1997.''
    (b) Clerical Amendment.--The table of sections for such chapter 24 
is amended by adding at the end the following new item:

                              ``Sec. 3407. Termination.''

SEC. 2. MONTHLY PAYMENTS OF ESTIMATED TAXES.

    (a) In General.--Subsection (c) of section 6654 of the Internal 
Revenue Code of 1986 (relating to estimated income tax for individuals) 
is amended to read as follows:
    ``(c) Number of Required Installments; Due Dates.--For purposes of 
this section--
            ``(1) Payable monthly.--There shall be 12 required 
        installments for each taxable year, one for each calendar 
        month.
            ``(2) Time for payment of installments.--The due date for 
        each required installment shall be the 15th day of the 
        following month.''
    (b) Conforming Amendments.--
            (1) Subparagraph (A) of section 6654(d)(1) of such Code is 
        amended by striking ``25 percent'' and inserting ``8.25 
        percent''.
            (2) Clause (ii) of section 6654(d)(2)(C) of such Code is 
        amended to read as follows:
                            ``(ii) Applicable percentage.--The 
                        applicable percentage is--
                                    ``(I) 7.5 percent for the 1st 
                                required installment, and
                                    ``(II) for each installment 
                                thereafter during the taxable year, the 
                                sum of 7.5 percentage points and the 
                                applicable percentage of the prior 
                                installment.''
            (3) Section 6654 of such Code is amended by striking 
        subsection (j) and by redesignating subsections (k) and (l) as 
        subsections (j) and (k), respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.
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