[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4053 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4053

 To amend the Internal Revenue Code of 1986 to simplify the individual 
   income tax by repealing the adjusted gross income limitations on 
itemized deductions and the personal exemption deduction, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 11, 1998

 Mr. Neal of Massachusetts (for himself and Mr. Rangel) 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 simplify the individual 
   income tax by repealing the adjusted gross income limitations on 
itemized deductions and the personal exemption deduction, and for other 
                               purposes.

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

SECTION 1. REPEAL OF OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.

    (a) In General.--Section 68 of the Internal Revenue Code of 1986 is 
hereby repealed.
    (b) Technical Amendments.--
            (1) Subparagraph (A) of section 1(f)(6) of such Code is 
        amended by striking ``section 68(b)(2)''.
            (2) Paragraph (1) of section 56(b) of such Code is amended 
        by striking subparagraph (F).
            (3) Subparagraph (B) of section 773(a)(3) of such Code is 
        amended by striking clause (i) and by redesignating clauses 
        (ii), (iii), and (iv) as clauses (i), (ii), and (iii), 
        respectively.
            (4) The table of sections for part I of subchapter B of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 68.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.

SEC. 2. REPEAL OF PHASEOUT OF PERSONAL EXEMPTIONS.

    (a) In General.--Subsection (d) of section 151 of the Internal 
Revenue Code of 1986 (relating to exemption amount) is amended by 
striking paragraph (3).
    (b) Technical Amendments.--
            (1) Paragraph (6) of section 1(f) of such Code is amended--
                    (A) by striking ``section 151(d)(4)'' in 
                subparagraph (A) and inserting ``section 151(d)(3)'', 
                and
                    (B) by striking ``section 151(d)(4)(A)'' in 
                subparagraph (B) and inserting ``section 151(d)(3)''.
            (2) Paragraph (4) of section 151(d) of such Code is amended 
        to read as follows:
            ``(3) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 1989, the dollar amount 
        contained in paragraph (1) shall be increased by an amount 
        equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, by substituting `calendar year 
                1988' for `calendar year 1992' in subparagraph (B) 
                thereof.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.

SEC. 3. ADDITIONAL INCOME TAX.

    (a) In General.--Section 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
    ``(i) Additional Income Tax.--
            ``(1) In general.--If the adjusted gross income of an 
        individual exceeds $75,000 (twice such dollar amount in the 
        case of a joint return), the tax imposed by this section 
        (determined after the application of subsection (h) and without 
        regard to this subsection) shall be increased by an amount 
        equal to 1.59 percent of such excess.
            ``(2) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 1999, the $75,000 
        amount contained in paragraph (1) shall be increased by an 
        amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under subsection (f)(3) for the calendar year in which 
                the taxable year begins, by substituting `calendar year 
                1998' for `calendar year 1992' in subparagraph (B) 
                thereof.
        If any increase under the preceding sentence is not a multiple 
        of $50, such increase shall be rounded to the nearest multiple 
        of $50.
            ``(3) Tax not to apply to estates and trusts.--This 
        subsection shall not apply to an estate or trust.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1998.
    (c) Section 15 Not To Apply.--The amendment made by this section 
shall not be treated as a change in a rate of tax for purposes of 
section 15 of such Code.
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