[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2414 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2414

    To amend the Internal Revenue Code of 1986 to eliminate certain 
      particularly unfair tax provisions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 1, 1999

Mr. Tancredo (for himself, Mr. Schaffer, Mr. Burton of Indiana, and Mr. 
 Barr of Georgia) introduced the following bill; which was referred to 
 the Committee on Ways and Means, and in addition to the Committee on 
Commerce, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to eliminate certain 
      particularly unfair tax provisions, 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. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Top Ten Terrible 
Tax Act of 1999''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--

Sec. 1. Short title.
Sec. 2. Repeal over 10 years of estate and gift taxes.
Sec. 3. Repeal of universal service charge.
Sec. 4. Repeal of excise tax on telephone and other communications 
                            services.
Sec. 5. Repeal of marriage penalty in individual income tax rates and 
                            standard deduction.
Sec. 6. Repeal over 10 years of capital gains tax on individuals.
Sec. 7. Repeal of excise tax on vaccines.
Sec. 8. Repeal of excise tax on sport fishing equipment.
Sec. 9. Repeal of 1993 income tax increase on social security benefits.
Sec. 10. Repeal of double taxation on interest and dividends.
Sec. 11. Repeal of 1993 increases in motor fuel taxes.

SEC. 2. REPEAL OVER 10 YEARS OF ESTATE AND GIFT TAXES.

    (a) Repeal of Estate and Gift Taxes.--Subtitle B (relating to 
estate and gift taxes) is repealed effective with respect to estates of 
decedents dying, and gifts made, after December 31, 2009.
    (b) Phaseout of Tax.--Subsection (c) of section 2001 (relating to 
imposition and rate of tax) is amended by adding at the end the 
following new paragraph:
            ``(3) Phaseout of tax.--In the case of estates of decedents 
        dying, and gifts made, during any calendar year after 1999 and 
        before 2010--
                    ``(A) In general.--The tentative tax under this 
                subsection shall be determined by using a table 
                prescribed by the Secretary (in lieu of using the table 
                contained in paragraph (1)) which is the same as such 
                table; except that--
                            ``(i) each of the rates of tax shall be 
                        reduced (but not below zero) by the number of 
                        percentage points determined under subparagraph 
                        (B), and
                            ``(ii) the amounts setting forth the tax 
                        shall be adjusted to the extent necessary to 
                        reflect the adjustments under clause (i).
                    ``(B) Percentage points of reduction.--

                                                          The number of
``For calendar year:                              percentage points is:
    2000..........................................                   5 
    2001..........................................                  10 
    2002..........................................                  15 
    2003..........................................                  20 
    2004..........................................                  25 
    2005..........................................                  30 
    2006..........................................                  35 
    2007..........................................                  40 
    2008..........................................                  45 
    2009..........................................                  50.
                    ``(C) Coordination with paragraph (2).--Paragraph 
                (2) shall be applied by reducing the 55 percent 
                percentage contained therein by the number of 
                percentage points determined for such calendar year 
                under subparagraph (B).
                    ``(D) Coordination with credit for state death 
                taxes.--Rules similar to the rules of subparagraph (A) 
                shall apply to the table contained in section 2011(b) 
                except that the number of percentage points referred to 
                in subparagraph (A)(i) shall be determined under the 
                following table:

                                                          The number of
``For calendar year:                              percentage points is:
    2000..........................................              1\1/2\ 
    2001..........................................                   3 
    2002..........................................              4\1/2\ 
    2003..........................................                   6 
    2004..........................................              7\1/2\ 
    2005..........................................                   9 
    2006..........................................             10\1/2\ 
    2007..........................................                  12 
    2008..........................................             13\1/2\ 
    2009..........................................                15.''
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, and gifts made, after December 31, 
1999.

SEC. 3. REPEAL OF UNIVERSAL SERVICE CHARGE.

    (a) In General.--Section 254(h) of the Communications Act of 1934 
(47 U.S.C. 254(h)) is amended--
            (1) in paragraph (1), by striking subparagraph (B);
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``elementary and secondary 
                        school classrooms,''; and
                            (ii) by striking ``, and libraries''; and
                    (B) in subparagraph (B), by striking ``public 
                institutional telecommunications users'' and inserting 
                ``health care providers'';
            (3) in paragraph (3), by striking ``public institutional 
        telecommunications user'' and inserting ``health care 
        provider'';
            (4) in paragraph (4), by striking ``, is a school'' and all 
        that follows through ``Act''; and
            (5) in paragraph (5)--
                    (A) by striking subparagraphs (A) and (C); and
                    (B) by redesignating subparagraph (B) as 
                subparagraph (A).
    (b) Universal Service Principles.--Section 254(b)(6) of the 
Communications Act of 1934 (47 U.S.C. 254(b)(6)) is amended--
            (1) in the paragraph heading, by striking ``schools, health 
        care, and libraries'' and inserting ``health care''; and
            (2) by striking ``Elementary and secondary schools and 
        classrooms, health care providers, and libraries'' and 
        inserting ``Health care providers''.
    (c) Special Services.--Section 254(c)(3) of the Communications Act 
of 1934 (47 U.S.C. 254(c)(3)) is amended by striking ``schools, 
libraries, and''.

SEC. 4. REPEAL OF EXCISE TAX ON TELEPHONE AND OTHER COMMUNICATIONS 
              SERVICES.

    (a) In General.--Chapter 33 (relating to facilities and services) 
is amended by striking subchapter B.
    (b) Conforming Amendments.--
            (1) Section 4293 is amended by striking ``chapter 32 (other 
        than the taxes imposed by sections 4064 and 4121) and 
        subchapter B of chapter 33,'' and inserting ``and chapter 32 
        (other than the taxes imposed by sections 4064 and 4121),''.
            (2)(A) Paragraph (1) of section 6302(e) is amended by 
        striking ``section 4251 or''.
            (B) Paragraph (2) of section 6302(e) is amended--
                    (i) by striking ``imposed by--'' and all that 
                follows through ``with respect to'' and inserting 
                ``imposed by section 4261 or 4271 with respect to'', 
                and
                    (ii) by striking ``bills rendered or''.
            (C) The subsection heading for section 6302(e) is amended 
        by striking ``Communications Services and''.
            (3) Section 6415 is amended by striking ``4251, 4261, or 
        4271'' each place it appears and inserting ``4261 or 4271''.
            (4) Paragraph (2) of section 7871(a) is amended by 
        inserting ``or'' at the end of subparagraph (B), by striking 
        subparagraph (C), and by redesignating subparagraph (D) as 
        subparagraph (C).
            (5) The table of subchapters for chapter 33 is amended by 
        striking the item relating to subchapter B.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid pursuant to bills first rendered more than 90 
days after the date of the enactment of this Act.

SEC. 5. REPEAL OF MARRIAGE PENALTY IN INDIVIDUAL INCOME TAX RATES AND 
              STANDARD DEDUCTION.

    (a) Rates.--Section 1 (relating to tax imposed) is amended by 
striking subsections (a) through (e) and inserting the following:
    ``(a) Married Individuals Filing Joint Returns and Surviving 
Spouses.--There is hereby imposed on the taxable income of--
            ``(1) every married individual (as defined in section 7703) 
        who makes a single return jointly with his spouse under section 
        6013, and
            ``(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table:

``If taxable income is:             The tax is:
    Not over $51,500...............
                                        15% of taxable income.
    Over $51,500 but not over 
        $124,900.
                                        $7,725, plus 28% of the excess 
                                                over $51,500.
    Over $124,900 but not over 
        $260,500.
                                        $28,277, plus 31% of the excess 
                                                over $124,900.
    Over $260,500 but not over 
        $566,300.
                                        $70,313, plus 36% of the excess 
                                                over $260,500.
    Over $566,300..................
                                        $180,401, plus 39.6% of the 
                                                excess over $566,300.
    ``(b) Heads of Households.--There is hereby imposed on the taxable 
income of every head of a household (as defined in section 2(b)) a tax 
determined in accordance with the following table:

``If taxable income is:             The tax is:
    Not over $34,550...............
                                        15% of taxable income.
    Over $34,550 but not over 
        $89,150.
                                        $5,182.50, plus 28% of the 
                                                excess over $34,550.
    Over $89,150 but not over 
        $144,400.
                                        $20,470.50, plus 31% of the 
                                                excess over $89,150.
    Over $144,400 but not over 
        $283,150.
                                        $37,598, plus 36% of the excess 
                                                over $144,400.
    Over $283,150..................
                                        $87,548, plus 39.6% of the 
                                                excess over $283,150.
    ``(c) Other Individuals.--There is hereby imposed on the taxable 
income of every individual (other than an individual to whom subsection 
(a) or (b) applies) a tax determined in accordance with the following 
table:

``If taxable income is:             The tax is:
    Not over $25,750...............
                                        15% of taxable income.
    Over $25,750 but not over 
        $62,450.
                                        $3,862.50, plus 28% of the 
                                                excess over $25,750.
    Over $62,450 but not over 
        $130,250.
                                        $14,138.50, plus 31% of the 
                                                excess over $62,450.
    Over $130,250 but not over 
        $283,150.
                                        $35,156.50, plus 36% of the 
                                                excess over $130,250.
    Over $283,150..................
                                        $90,200.50, plus 39.6% of the 
                                                excess over $283,150.
    ``(d) Estates and Trusts.--There is hereby imposed on the taxable 
income of--
            ``(1) every estate, and
            ``(2) every trust,
taxable under this subsection a tax determined in accordance with the 
following table:

``If taxable income is:             The tax is:
    Not over $1,750................
                                        15% of taxable income.
    Over $1,750 but not over $4,050
                                        $262.50, plus 28% of the excess 
                                                over $1,750.
    Over $4,050 but not over $6,200
                                        $906.50, plus 31% of the excess 
                                                over $4,050.
    Over $6,200 but not over $8,450
                                        $1,573, plus 36% of the excess 
                                                over $6,200.
    Over $8,450....................
                                        $2,383, plus 39.6% of the 
                                                excess over $8,450.''.
    (b) Standard Deduction.--
            (1) In general.--Paragraph (2) of section 63(c) (relating 
        to standard deduction) is amended to read as follows:
            ``(2) Basic standard deduction.--For purposes of paragraph 
        (1), the basic standard deduction is--
                    ``(A) $8,600 in the case of--
                            ``(i) a joint return, or
                            ``(ii) a surviving spouse (as defined in 
                        section 2(a)),
                    ``(B) $6,350 in the case of a head of household (as 
                defined in section 2(b)), or
                    ``(C) $4,300 in any other case.''
            (2) Technical amendments.--
                    (A) Paragraph (4) of section 63(c) is amended to 
                read as follows:
            ``(4) Adjustments for inflation.--In the case of any 
        taxable year beginning in a calendar year after 1999, each 
        dollar amount contained in paragraph (2) or (5) or subsection 
        (f) 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.''
                    (B) Subparagraph (A) of section 63(c)(5) is amended 
                by striking ``$500'' and inserting ``$700''.
                    (C) Subsection (f) of section 63 is amended by 
                striking ``$600'' each place it appears and inserting 
                ``$850'' and by striking ``$750'' in paragraph (3) and 
                inserting ``$1,050''.
                    (D) Subparagraph (B) of section 1(f)(6) is amended 
                by striking ``subsection (c)(4) of section 63 (as it 
                applies to subsections (c)(5)(A) and (f) of such 
                section)'' and inserting ``section 63(c)(4)''.
    (c) Conforming Amendments Related to Inflation Adjustment of Income 
Tax Brackets.--
            (1) Subsection (f) of section 1 is amended--
                    (A) by striking ``1993'' in paragraph (1) and 
                inserting ``1999'',
                    (B) by striking ``1992'' in paragraph (3)(B) and 
                inserting ``1998'', and
                    (C) by striking paragraph (7).
            (2) The following provisions are each amended by striking 
        ``1992'' and inserting ``1998'' each place it appears:
                    (A) Section 25A(h).
                    (B) Section 32(j)(1)(B).
                    (C) Section 41(e)(5)(C).
                    (D) Section 59(j)(2)(B).
                    (E) Section 63(c)(4)(B).
                    (F) Section 68(b)(2)(B).
                    (G) Section 135(b)(2)(B)(ii).
                    (H) Section 151(d)(4).
                    (I) Section 220(g)(2).
                    (J) Section 221(g)(1)(B).
                    (K) Section 512(d)(2)(B).
                    (L) Section 513(h)(2)(C)(ii).
                    (M) Section 685(c)(3)(B).
                    (N) Section 877(a)(2).
                    (O) Section 911(b)(2)(D)(ii)(II).
                    (P) Section 2032A(a)(3)(B).
                    (Q) Section 2503(b)(2)(B).
                    (R) Section 2631(c)(1)(B).
                    (S) Section 4001(e)(1)(B).
                    (T) Section 4261(e)(4)(A)(ii).
                    (U) Section 6039F(d).
                    (V) Section 6323(i)(4)(B).
                    (W) Section 6601(j)(3)(B).
                    (X) Section 7430(c)(1).
            (3) Subclause (II) of section 42(h)(6)(G)(i) is amended by 
        striking ``1987'' and inserting ``1998''.
            (4) Subparagraph (B) of section 132(f)(6) is amended by 
        inserting before the period ``, determined by substituting 
        `calendar year 1992' for `calendar year 1998' in subparagraph 
        (B) thereof''.
            (5) Sections 468B(b)(1), 511(b)(1), 641(a), 641(d)(2)(A), 
        and 685(d) are each amended by striking ``section 1(e)'' each 
        place it appears and inserting ``section 1(d)''.
            (6) Sections 1(f)(2) and 904(b)(3)(E)(ii) are each amended 
        by striking ``(d), or (e)'' and inserting ``or (d)''.
            (7) Paragraph (1) of section 1(f) is amended by striking 
        ``(d), and (e)'' and inserting ``and (d)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.
    (e) Section 15 Not To Apply.--No amendment made by this section 
shall be treated as a change in a rate of tax for purposes of section 
15 of the Internal Revenue Code of 1986.

SEC. 6. REPEAL OVER 10 YEARS OF CAPITAL GAINS TAX ON INDIVIDUALS.

    (a) In General.--Part I of subchapter P of chapter 1 (relating to 
treatment of capital gains) is amended by adding at the end the 
following new section:

``SEC. 1203. EXCLUSION OF CERTAIN AMOUNTS OF NET CAPITAL GAIN OF 
              INDIVIDUALS.

    ``(a) General Rule.--In the case of an individual, gross income 
shall not include an amount equal to the applicable percentage of the 
net capital gain of the taxpayer for the taxable year.
    ``(b) Applicable Percentage.--For purposes of subsection (a), the 
term `applicable percentage' means the percentage determined under the 
following table:

``For taxable years beginning         
    in calendar year--              The applicable percentage is--
    2000..........................................               10    
    2001..........................................               20    
    2002..........................................               30    
    2003..........................................               40    
    2004..........................................               50    
    2005..........................................               60    
    2006..........................................               70    
    2007..........................................               80    
    2009..........................................               90    
    2010 and thereafter...........................           100.''    
    (b) Conforming Amendments.--
            (1) Section 1222 is amended by adding at the end the 
        following new sentence:
``Determinations under this section shall be made before the 
application of section 1203.''
            (2) The table of sections for part I of subchapter P of 
        chapter 1 is amended by adding at the end the following new 
        item:

                              ``Sec. 1203. Exclusion of certain amounts 
                                        of net capital gain of 
                                        individuals.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.

SEC. 7. REPEAL OF EXCISE TAX ON VACCINES.

    (a) In General.--Subchapter C of chapter 32 (relating to certain 
vaccines) is hereby repealed.
    (b) Conforming Amendments.--
            (1) Subsection (a) of section 4121 is amended by striking 
        ``In the case of the tax imposed by section 4131, paragraphs 
        (3), (4), and (5) shall not apply and paragraph (2) shall apply 
        only if the use of the exported vaccine meets such requirements 
        as the Secretary may by regulations prescribe.''.
            (2) Paragraph (2) of section 6416(b) is amended by striking 
        the last sentence.
            (3) The table of subchapters for chapter 32 is amended by 
        striking the item relating to subchapter C.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2000.

SEC. 8. REPEAL OF EXCISE TAX ON SPORT FISHING EQUIPMENT.

    (a) In General.--Subchapter D of chapter 32 (relating to 
recreational equipment) is amended to read as follows:

                    ``Subchapter D--Bows and Arrows

                              ``Sec. 4161. Imposition of tax.

``SEC. 4161. IMPOSITION OF TAX.

    ``(a) Bows.--
            ``(1) In general.--There is hereby imposed on the sale by 
        the manufacturer, producer, or importer of any bow which has a 
        draw weight of 10 pounds or more, a tax equal to 11 percent of 
        the price for which so sold.
            ``(2) Parts and accessories.--There is hereby imposed upon 
        the sale by the manufacturer, producer, or importer--
                    ``(A) of any part of accessory suitable for 
                inclusion in or attachment to a bow described in 
                paragraph (1), and
                    ``(B) of any quiver suitable for use with arrows 
                described in subsection (b), a tax equivalent to 11 
                percent of the price for which so sold.
    ``(b) Arrows.--There is hereby imposed on the sale by the 
manufacturer, producer, or importer of any shaft, point, nock, or vane 
of a type used in the manufacture of any arrow which after its 
assembly--
            ``(1) measures 18 inches overall or more in length, or
            ``(2) measures less than 18 inches overall in length but is 
        suitable for use with a bow described in subsection (a)(1), a 
        tax equal to 12.4 percent of the price for which so sold.
    ``(c) Treatment of Certain Resales.--
            ``(1) In general.--If--
                    ``(A) the manufacturer, producer, or importer sells 
                any article taxable under section 4161(a) to any 
                person,
                    ``(B) the constructive sale price rules of section 
                4216(b) do not apply to such sale, and
                    ``(C) such person (or any other person) sells such 
                article to a related person with respect to the 
                manufacturer, producer, or importer,
        then such related person shall be liable for tax under section 
        4161 in the same manner as if such related person were the 
        manufacturer of the article.
            ``(2) Credit for tax previously paid.--If--
                    ``(A) tax is imposed on the sale of any article by 
                reason of paragraph (1), and
                    ``(B) the related person establishes the amount of 
                the tax which was paid on the sale described in 
                paragraph (1)(A), the amount of the tax so paid shall 
                be allowed as a credit against the tax imposed by 
                reason of paragraph (1).
            ``(3) Related person.--For purposes of this subsection, the 
        term `related person' has the meaning given such term by 
        section 465(b)(3)(C).
            ``(4) Regulations.--Except to the extent provided in 
        regulations, rules similar to the rules of this subsection 
        shall also apply in cases (not described in paragraph (1)) in 
        which intermediaries or other devices are used for purposes of 
        reducing the amount of the tax imposed by section 4161(a).''
    (b) Clerical Amendment.--The item relating to subchapter D in the 
table of subchapters for chapter 32 is amended to read as follows:

                              ``Subchapter D. Bows and arrows.''
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2000.

SEC. 9. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL SECURITY BENEFITS.

    (a) In General.--Paragraph (2) of section 86(a) (relating to social 
security and tier 1 railroad retirement benefits) is amended by adding 
at the end the following new sentence:
        ``This paragraph shall not apply to any taxable year beginning 
        after December 31, 1999.''
    (b) Conforming Amendments.--
            (1) Paragraph (3) of section 871(a) is amended by striking 
        ``85 percent'' in subparagraph (A) and inserting ``50 
        percent''.
            (2)(A) Subparagraph (A) of section 121(e)(1) of the Social 
        Security Amendments of 1983 (Public Law 98-21) is amended--
                    (i) by striking ``(A) There'' and inserting 
                ``There'';
                    (ii) by striking ``(i)'' immediately following 
                ``amounts equivalent to''; and
                    (iii) by striking ``, less (ii)'' and all that 
                follows and inserting a period.
            (B) Paragraph (1) of section 121(e) of such Act is amended 
        by striking subparagraph (B).
            (C) Paragraph (3) of section 121(e) of such Act is amended 
        by striking subparagraph (B) and by redesignating subparagraph 
        (C) as subparagraph (B).
            (D) Paragraph (2) of section 121(e) of such Act is amended 
        in the first sentence by striking ``paragraph (1)(A)'' and 
        inserting ``paragraph (1)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.

SEC. 10. REPEAL OF DOUBLE TAXATION ON INTEREST AND DIVIDENDS.

    (a) In General.--Part III of subchapter B of chapter 1 (relating to 
amounts specifically excluded from gross income) is amended by 
inserting after section 115 the following new section:

``SEC. 116. EXCLUSION OF DIVIDENDS AND INTEREST RECEIVED BY 
              INDIVIDUALS.

    ``(a) Exclusion From Gross Income.--Gross income does not include 
dividends and interest received during the taxable year by an 
individual.
    ``(b) Certain Dividends Excluded.--Subsection (a) shall not apply 
to any dividend from a corporation which, for the taxable year of the 
corporation in which the distribution is made, or for the next 
preceding taxable year of the corporation, is a corporation exempt from 
tax under section 501 (relating to certain charitable, etc., 
organization) or section 521 (relating to farmers' cooperative 
associations).
    ``(c) Special Rules.--For purposes of this section--
            ``(1) Exclusion not to apply to capital gain dividends from 
        regulated investment companies and real estate investment 
        trusts.--

                                ``For treatment of capital gain 
dividends, see sections 854(a) and 857(c).
            ``(2) Certain nonresident aliens ineligible for 
        exclusion.--In the case of a nonresident alien individual, 
        subsection (a) shall apply only--
                    ``(A) in determining the tax imposed for the 
                taxable year pursuant to section 871(b)(1) and only in 
                respect of dividends and interest which are effectively 
                connected with the conduct of a trade or business 
                within the United States, or
                    ``(B) in determining the tax imposed for the 
                taxable year pursuant to section 877(b).
            ``(3) Dividends from employee stock ownership plans.--
        Subsection (a) shall not apply to any dividend described in 
        section 404(k).''.
    (b) Conforming Amendments.--
            (1)(A) Subparagraph (A) of section 135(c)(4) is amended by 
        inserting ``116,'' before ``137''.
            (B) Subsection (d) of section 135 is amended by 
        redesignating paragraph (4) as paragraph (5) and by inserting 
        after paragraph (3) the following new paragraph:
            ``(4) Coordination with section 116.--This section shall be 
        applied before section 116.''.
            (2) Paragraph (2) of section 265(a) is amended by inserting 
        before the period ``, or to purchase or carry obligations or 
        shares, or to make deposits, to the extent the interest thereon 
        is excludable from gross income under section 116''.
            (3) Subsection (c) of section 584 is amended by adding at 
        the end thereof the following new flush sentence:
``The proportionate share of each participant in the amount of 
dividends or interest received by the common trust fund and to which 
section 116 applies shall be considered for purposes of such section as 
having been received by such participant.''.
            (4) Subsection (a) of section 643 is amended by 
        redesignating paragraph (7) as paragraph (8) and by inserting 
        after paragraph (6) the following new paragraph:
            ``(7) Dividends or interest.--There shall be included the 
        amount of any dividends or interest excluded from gross income 
        pursuant to section 116.''.
            (5) Section 854(a) is amended by inserting ``section 116 
        (relating to exclusion of dividends and interest received by 
        individuals) and'' after ``For purposes of''.
            (6) Section 857(c) is amended to read as follows:
    ``(c) Restrictions Applicable to Dividends Received From Real 
Estate Investment Trusts.--
            ``(1) Treatment for section 116.--For purposes of section 
        116 (relating to exclusion of dividends and interest received 
        by individuals), a capital gain dividend (as defined in 
        subsection (b)(3)(C)) received from a real estate investment 
        trust which meets the requirements of this part shall not be 
        considered as a dividend.
            ``(2) Treatment for section 243.--For purposes of section 
        243 (relating to deductions for dividends received by 
        corporations), a dividend received from a real estate 
        investment trust which meets the requirements of this part 
        shall not be considered as a dividend.''.
            (7) The table of sections for part III of subchapter B of 
        chapter 1 is amended by inserting after the item relating to 
        section 115 the following new item:

                              ``Sec. 116. Exclusion of dividends and 
                                        interest received by 
                                        individuals.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.

SEC. 11. REPEAL OF 1993 INCREASES IN MOTOR FUEL TAXES.

    (a) Highway Gasoline.--Clause (i) of section 4081(a)(2)(A) is 
amended by striking ``18.3 cents'' and inserting ``14 cents''.
    (b) Aviation Gasoline.--Clause (ii) of section 4081(a)(2)(A) is 
amended by striking ``19.3 cents'' and inserting ``15 cents''.
    (c) Diesel Fuel and Kerosene.--Clause (iii) of section 
4081(a)(2)(A) is amended by striking ``24.3 cents'' and inserting ``20 
cents''.
    (d) Aviation Fuel.--Paragraph (1) of section 4091(b) is amended by 
striking ``21.8 cents'' and inserting ``17.5 cents''.
    (e) Fuel Used on Inland Waterways.--
            (1) Paragraph (1) of section 4042(b) is amended by adding 
        ``and'' at the end of subparagraph (A), by striking ``, and'' 
        at the end of subparagraph (B) and inserting a period, and by 
        striking subparagraph (C).
            (2) Paragraph (2) of section 4042(b) is amended by striking 
        subparagraph (C).
    (f) Technical Amendments.--
            (1) Clause (ii) of section 4041(a)(1)(C) is amended by 
        striking subclauses (I), (II), and (III) and inserting the 
        following new subclauses:
                                    ``(I) 4.3 cents per gallon before 
                                the date of the enactment of the Top 
                                Ten Terrible Tax Act of 1999 and before 
                                January 1, 2000, and
                                    ``(II) zero after Decenber 31, 
                                1999.''
            (2) Subclause (I) of section 4041(a)(1)(C)(iii) is amended 
        by striking ``7.3 cents'' and inserting ``3 cents'' and by 
        striking ``4.3 cents per gallon'' and inserting ``zero''.
            (3) Subsection (a) of section 4041 is amended by striking 
        paragraph (3).
            (4) Paragraph (3) of section 4041(c) is amended to read as 
        follows:
            ``(3) Termination.--The rate of the taxes imposed by 
        paragraph (1) shall be zero after September 30, 2007.''
            (5) Clauses (i) and (ii) of section 4041(m)(1)(A) are 
        amended to read as follows:
                            ``(i) 7 cents per gallon on and after the 
                        date of the enactment of the Top Ten Terrible 
                        Tax Act of 1999 and before October 1, 2005, and
                            ``(ii) zero after September 30, 2005, 
                        and''.
            (6) Subsection (c) of section 4081 is amended by striking 
        paragraph (6) and by redesignating paragraphs (7) and (8) as 
        paragraphs (6) and (7), respectively.
            (7) Paragraphs (1) and (2) of section 4081(d) are amended 
        to read as follows:
            ``(1) In general.--The rates of tax specified in clauses 
        (i) and (iii) of subsection (a)(2)(A) shall be zero after 
        September 30, 2005.
            ``(2) Aviation gasoline.--The rate of tax specified in 
        subsection (a)(2)(A)(ii) shall be zero after September 30, 
        2007.
            (8) Subparagraph (A) of section 4091(b)(3) is amended to 
        read as follows:
                    ``(A) The rate of tax specified in paragraph (1) 
                shall be zero after September 30, 2007.''
            (9) Subsection (c) of section 4091 is amended--
                    (A) by striking ``13.4 cents'' each place it 
                appears in paragraph (1) and inserting ``9.1 cents'',
                    (B) by striking ``14 cents'' in paragraph (1) and 
                inserting ``9.7 cents'',
                    (C) by striking paragraph (4), and
                    (D) by redesignating paragraph (5) as paragraph 
                (4).
            (10) Subsection (b) of section 4092 is amended by striking 
        ``attributable to'' and all that follows through ``section 
        4041(c)(4)).'' and inserting ``attributable to the Leaking 
        Underground Storage Tank Trust Fund financing rate imposed by 
        such section. For purposes of the preceding sentence, the term 
        `commercial aviation' means any use of an aircraft other than 
        in noncommercial aviation (as defined in section 4041(c)(4)).''
            (11) Subparagraph (B) of section 6421(f)(2) is amended by 
        striking ``and,'' and all that follows to the period.
            (12) Subsection (f) of section 6421 is hereby repealed.
            (13) Subparagraph (A) of section 6427(b)(2) is amended by 
        striking ``7.4 cents'' and inserting ``3.1 cents''.
            (14) Paragraph (3) of section 6427(l) is amended to read as 
        follows:
            ``(3) Refund of certain taxes on fuel used in diesel-
        powered trains.--For purposes of this subsection, the term 
        `nontaxable use' includes fuel used in a diesel-powered 
        train.''
            (15) Paragraph (4) of section 6427(l) is amended by 
        striking ``attributable to'' and all that follows through the 
        period and inserting ``attributable to the Leaking Underground 
        Storage Tank Trust Fund financing rate imposed by such 
        section.''
            (16) Paragraph (2) of section 9502(f) is amended by 
        striking ``is the excess of'' and all that follows and 
        inserting ``is the rate of tax determined under such section.''
    (g) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2000.
    (h) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before January 1, 2000, tax has been imposed 
                under section 4081 or 4091 of the Internal Revenue Code 
                of 1986 on any liquid, and
                    (B) on such date such liquid is held by a dealer 
                and has not been used and is intended for sale,
        there shall be credited or refunded (without interest) to the 
        person who paid such tax (hereafter in this subsection referred 
        to as the ``taxpayer'') an amount equal to the excess of the 
        tax paid by the taxpayer over the amount of such tax which 
        would be imposed on such liquid had the taxable event occurred 
        on such date.
            (2) Time for filing claims.--No credit or refund shall be 
        allowed or made under this subsection unless--
                    (A) claim therefor is filed with the Secretary of 
                the Treasury before July 1, 2000, based on a request 
                submitted to the taxpayer before April 1, 2000, by the 
                dealer who held the liquid on such date of enactment, 
                and
                    (B) the taxpayer has repaid or agreed to repay the 
                amount so claimed to such dealer or has obtained the 
                written consent of such dealer to the allowance of the 
                credit or the making of the refund.
            (3) Exception for fuel held in retail stocks.--No credit or 
        refund shall be allowed under this subsection with respect to 
        any liquid in retail stocks held at the place where intended to 
        be sold at retail.
            (4) Definitions.--For purposes of this subsection, the 
        terms ``dealer'' and ``held by a dealer'' have the respective 
        meanings given to such terms by section 6412 of such Code.
            (5) Certain rules to apply.--Rules similar to the rules of 
        subsections (b) and (c) of section 6412 of such Code shall 
        apply for purposes of this subsection.
                                 <all>