[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 256 Engrossed in House (EH)]


                 In the House of Representatives, U.S.,

                              July 22 (legislative day, July 21), 1999.
    Resolved, That upon adoption of this resolution it shall be in order without 
intervention of any point of order to consider in the House the bill (H.R. 2488) 
to amend the Internal Revenue Code of 1986 to reduce individual income tax 
rates, to provide marriage penalty relief, to reduce taxes on savings and 
investments, to provide estate and gift tax relief, to provide incentives for 
education savings and health care, and for other purposes. The bill shall be 
considered as read for amendment. The amendment recommended by the Committee on 
Ways and Means now printed in the bill, modified by the amendments printed in 
section 3 of this resolution, shall be considered as adopted. The previous 
question shall be considered as ordered on the bill, as amended, and on any 
further amendment thereto to final passage without intervening motion except: 
(1) two hours of debate on the bill, as amended, equally divided and controlled 
by the chairman and ranking minority member of the Committee on Ways and Means; 
(2) the further amendment in the nature of a substitute printed in part B of 
House Report 106-246, if offered by Representative Rangel of New York or his 
designee, which shall be in order without intervention of any point of order, 
shall be considered as read, and shall be separately debatable for one hour 
equally divided and controlled by the proponent and an opponent; and (3) one 
motion to recommit with or without instructions.
    Sec. 2. During consideration of H.R. 2488, notwithstanding the operation of 
the previous question, the Chairman of the Committee of the Whole may postpone 
further consideration of the bill until the following legislative day, when 
consideration shall resume at a time designated by the Speaker.
    Sec. 3. The amendments specified in section 1 of this resolution are as 
follows:
    Page 10, strike the table after line 18 and insert the following:

                ``For taxable years beginning
                                                         The applicable
                  in calendar year--
                                                        percentage is--
                    2001 through 2003......................        1.0 
                    2004...................................        2.5 
                    2005 through 2007......................        5.0 
                    2008...................................        7.5 
                    2009 and thereafter....................      10.0. 
        In the case of taxable years beginning in calendar year 2001, 
        the rounding referred to in the preceding sentence shall be to 
        the next highest tenth.
            ``(9) Post-2001 rate reductions contingent on no increase 
        in interest on total united states debt.--
                    ``(A) In general.--In the case of taxable years 
                beginning after December 31, 2001, paragraph (8) shall 
                apply only to taxable years beginning after the first 
                debt reduction calendar year.
                    ``(B) Delay of further rate reductions if increase 
                in interest on total united states debt.--For each 
                calendar year after 2000 which is not a debt reduction 
                calendar year, the table in paragraph (8) shall be 
                applied for each subsequent calendar year by 
                substituting the calendar year which is 1 year later. 
                The preceding sentence shall cease to apply after the 
                earliest calendar year with respect to which the 
                applicable percentage under paragraph (8) is 10 percent 
                (after the application of the preceding sentence).
                    ``(C) Debt reduction calendar year.--For purposes 
                of this paragraph, the term `debt reduction calendar 
                year' means any calendar year after 2000 if, for the 
                12-month period ending on July 31 of such calendar 
                year, the interest expense on the total United States 
                debt is not greater than such interest expense for the 
                12-month period ending on July 31 of the preceding 
                calendar year.
                    ``(D) Total united states debt.--For purposes of 
                this paragraph, the term `total United States debt' 
                means obligations which are subject to the public debt 
                limit in section 3101 of title 31, United States 
                Code.''.

    Page 16, line 24, strike ``2007'' and insert ``2008''.

    Page 17, line 7, strike ``2002'' and insert ``2004''.

    Page 17, line 8, strike ``2008'' and insert ``2009''.

    Page 17, strike the table after line 13 and insert the following 
new table:

        ``For taxable years beginning
                                                         The applicable
          in calendar year--
                                                        percentage is--
            2005...........................................      80    
            2006...........................................      70    
            2007...........................................      60    
            2008...........................................  50.''.    

    Page 18, lines 18 and 19, strike ``2007'' and insert ``2008''.

    Page 20, strike lines 1 through 6 and insert the following:

                    ``(A) in the case of any taxable year beginning in 
                2001 or 2002, $50 ($100 in the case of a joint return);
                    ``(B) in the case of any taxable year beginning in 
                2003 or 2004, $100 ($200 in the case of a joint 
                return); and
                    ``(C) in the case of any taxable year beginning 
                after 2004, $200 ($400 in the case of a joint return).

    Page 38, strike line 24 and all that follows through page 40, line 
17, and insert the following:
            ``(2) a tax of 30 percent of the net capital gain (or, if 
        less, taxable income).
    ``(b) Cross References.--For computation of the alternative tax--
            ``(1) in the case of life insurance companies, see section 
        801(a)(2);
            ``(2) in the case of regulated investment companies and 
        their shareholders, see section 852(b)(3)(A) and (D); and
            ``(3) in the case of real estate investment trusts, see 
        section 857(b)(3)(A).''.
    (b) Technical Amendments.--
            (1) Paragraphs (1) and (2) of section 1445(e) are each 
        amended by striking ``35 percent'' and inserting ``30 
        percent''.
            (2)(A) The second sentence of section 7518(g)(6)(A) is 
        amended by striking ``34 percent'' and inserting ``30 
        percent''.
            (B) The second sentence of section 607(h)(6)(A) of the 
        Merchant Marine Act, 1936, is amended by striking ``34 
        percent'' and inserting ``30 percent''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2004.
            (2) Withholding.--The amendment made by subsection (b)(1) 
        shall apply to amounts paid after December 31, 2004.

    Page 41, strike line 16 and all that follows through the end of the 
page and insert the following:
            ``(2) Corporations for taxable years beginning after 
        2004.--In the case of a corporation for any taxable year 
        beginning after 2004 and before 2009, the limitation under 
        paragraph (1) shall be increased by the applicable percentage 
        (determined in accordance with the following table) of the 
        tentative minimum tax for the taxable year.

        ``For taxable years beginning
                                                         The applicable
          in calendar year--
                                                        percentage is--
            2005...........................................      20    
            2006...........................................      30    
            2007...........................................      40    
            2008...........................................     50.    

    Page 42, line 17, strike ``2002'' and insert ``2004''.

    Page 42, line 24, strike ``2007'' and insert ``2008''.

    Page 85, strike line 20 and all that follows through page 88, line 
7, and insert the following new section:

SEC. 611. ADDITIONAL REDUCTIONS OF ESTATE AND GIFT TAX RATES.

    (a) Maximum Rate of Tax Reduced to 50 Percent.--
            (1) In general.--The table contained in section 2001(c)(1) 
        is amended by striking the 2 highest brackets and inserting the 
        following:

    ``Over $2,500,000..............
                                        $1,025,800, plus 50% of the 
                                                excess over 
                                                $2,500,000.''.
            (2) Phase-in of reduced rate.--Subsection (c) of section 
        2001 is amended by adding at the end the following new 
        paragraph:
            ``(3) Phase-in of reduced rate.--In the case of decedents 
        dying, and gifts made, during 2001, the last item in the table 
        contained in paragraph (1) shall be applied by substituting 
        `53%' for `50%'.''.
    (b) Repeal of Phaseout of Graduated Rates.--Subsection (c) of 
section 2001 is amended by striking paragraph (2) and redesignating 
paragraph (3), as added by subsection (a), as paragraph (2).
    (c) Additional Reductions of Rates of Tax.--Subsection (c) of 
section 2001, as so amended, is amended by adding at the end the 
following new paragraph:
            ``(3) Phasedown of tax.--In the case of estates of 
        decedents dying, and gifts made, during any calendar year after 
        2004 and before 2009--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), 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 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:
                    2003...................................        1.0 
                    2004...................................        2.0 
                    2005...................................        3.0 
                    2006...................................        4.0 
                    2007...................................        5.5 
                    2008...................................        7.5.
                    ``(C) Coordination with income tax rates.--The 
                reductions under subparagraph (A)--
                            ``(i) shall not reduce any rate under 
                        paragraph (1) below the lowest rate in section 
                        1(c); and
                            ``(ii) shall not reduce the highest rate 
                        under paragraph (1) below the highest rate in 
                        section 1(c).
                    ``(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 Secretary shall prescribe percentage 
                point reductions which maintain the proportionate 
                relationship (as in effect before any reduction under 
                this paragraph) between the credit under section 2011 
                and the tax rates under subsection (c).''.
    (d) Effective Dates.--
            (1) Subsections (a) and (b).--The amendments made by 
        subsections (a) and (b) shall apply to estates of decedents 
        dying, and gifts made, after December 31, 2000.
            (2) Subsection (c).--The amendment made by subsection (c) 
        shall apply to estates of decedents dying, and gifts made, 
        after December 31, 2004.

    Page 278, strike line 1 and all that follows through page 282, line 
6.

    Page 334, strike line 6 and all that follows through page 336, line 
13.

    Page 345, strike line 10 and all that follows through page 349, 
line 15.
    Page 358, after line 2, insert the following new section:

SEC. 1264. TREATMENT OF MULTIEMPLOYER PLANS UNDER SECTION 415.

    (a) In General.--Paragraph (11) of section 415(b) (relating to 
limitation for defined benefit plans) is amended to read as follows:
            ``(11) Special limitation rule for governmental and 
        multiemployer plans.--In the case of a governmental plan (as 
        defined in section 414(d)) or a multiemployer plan (as defined 
        in section 414(f)), subparagraph (B) of paragraph (1) shall not 
        apply.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to years beginning after December 31, 2000.

    At the end of the bill insert the following new titles:

                TITLE XVII--COMMITMENT TO DEBT REDUCTION

SEC. 1701. COMMITMENT TO DEBT REDUCTION.

    (a) Findings.--The Congress finds that--
            (1) the national debt of the United States held by the 
        public is $3.619 trillion as of fiscal year 1999;
            (2) the Federal budget is projected to produce a surplus 
        each year in the next 10 fiscal years; and
            (3) refunding taxes and reducing the national debt held by 
        the public will assure continued economic growth and financial 
        freedom for future generations.
    (b) Sense of the Congress.--It is the sense of the Congress that 
the national debt held by the public shall be reduced from $3.619 
trillion to a level below $1.61 trillion by fiscal year 2009.

                    TITLE XVIII--BUDGETARY TREATMENT

SEC. 1801. EXCLUSION OF EFFECTS OF THIS ACT FROM PAYGO SCORECARD.

    Upon the enactment of this Act, the Director of the Office of 
Management and Budget shall not make any estimate of changes in direct 
spending outlays and receipts under section 252(d) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 resulting from the 
enactment of this Act.

    Conform the section numbering and the table of contents 
accordingly.
            Attest:

                                                                 Clerk.