[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1014 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1014

 To amend the Internal Revenue Code of 1986 to reduce the rate of the 
         individual income tax and the number of tax brackets.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 11, 1999

   Mr. Frist introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to reduce the rate of the 
         individual income tax and the number of tax brackets.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``10-20-30 Act''.

SEC. 2. MODIFICATION OF GENERAL TAX RATE.

    (a) General Rule.--Section 1 of the Internal Revenue Code of 1986 
(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 $60,000...............
                                        10% of taxable income.
    Over $60,000 but not over 
        $150,000.
                                        $6,000, plus 20% of the excess 
                                                over $60,000.
    Over $150,000..................
                                        $24,000, plus 30% of the excess 
                                                over $150,000.
    ``(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 $45,000...............
                                        10% of taxable income.
    Over $45,000 but not over 
        $136,000.
                                        $4,500, plus 20% of the excess 
                                                over $45,000.
    Over $136,000..................
                                        $22,700, plus 30% of the excess 
                                                over $136,000.
    ``(c) Unmarried Individuals (Other Than Surviving Spouses and Heads 
of Households).--There is hereby imposed on the taxable income of every 
individual (other than a married individual (as defined in section 
7703) filing a joint return or a separate return, a surviving spouse as 
defined in section 2(a), or a head of 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 $35,000...............
                                        10% of taxable income.
    Over $35,000 but not over 
        $125,000.
                                        $3,500, plus 20% of the excess 
                                                over $35,000.
    Over $125,000..................
                                        $21,500, plus 30% of the excess 
                                                over $125,000.
    ``(d) Married Individuals Filing Separate Returns.--There is hereby 
imposed on the taxable income of every married individual (as defined 
in section 7703) who does not make a single return jointly with his 
spouse under section 6013, a tax determined in accordance with the 
following table:

``If taxable income is:             The tax is:
    Not over $30,000...............
                                        10% of taxable income.
    Over $30,000 but not over 
        $75,000.
                                        $3,000, plus 20% of the excess 
                                                over $30,000.
    Over $75,000...................
                                        $12,000, plus 30% of the excess 
                                                over $75,000.
    ``(e) 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) Reduction in Alternative Minimum Tax Rate.--Section 
55(b)(1)(A)(i) of the Internal Revenue Code of 1986 (relating to 
tentative minimum tax for noncorporate taxpayers) is amended--
            (1) by striking ``26 percent'' in subclause (I) and 
        inserting ``18 percent'', and
            (2) by striking ``28 percent'' in subclause (II) and 
        inserting ``20 percent''.
    (c) Inflation Adjustment To Apply in Determining Rates for 2000.--
Section 1(f) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``1993'' in paragraph (1) and inserting 
        ``1999'',
            (2) by striking ``1992'' in paragraph (3)(B) and inserting 
        ``1998'', and
            (3) by striking paragraph (7).
    (d) Conforming Amendments.--
            (1) The following provisions of the Internal Revenue Code 
        of 1986 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).
            (2) Subclause (II) of section 42(h)(6)(G)(i) of such Code 
        is amended by striking ``1987'' and inserting ``1998''.
            (3) Clause (ii) of section 132(f)(6)(A) of such Code, as 
        amended by section 9010(b)(1) of the Transportation Equity Act 
        for the 21st Century, is amended by striking ``, by 
        substituting `calendar year 1998' for `calendar year 1992'.'' 
        and by inserting a period.
            (4) Subparagraph (A) of section 132(f)(6) of such Code, as 
        amended by section 9010(c)(2) of the Transportation Equity Act 
        for the 21st Century, is amended by striking clause (ii) and 
        all that follows through ``paragraph (2)(A).'' and inserting:
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins. 
                        In the case of any taxable year beginning in a 
                        calendar year after 2002, section 1(f)(3) shall 
                        be applied by substituting `calendar year 2001' 
                        for `calendar year 1998' for purposes of 
                        adjusting the dollar amount contained in 
                        paragraph (2)(A).''
            (5) Subparagraph (B) of section 6334(g)(1) of such Code is 
        amended by striking ``, by substituting `calendar year 1998' 
        for `calendar year 1992' in subparagraph (B) thereof''.
    (e) Additional Conforming Amendments.--
            (1) Section 1(g)(7)(B)(ii)(II) of the Internal Revenue Code 
        of 1986 is amended by striking ``15 percent'' and inserting 
        ``10 percent''.
            (2) Section 1(h) of such Code is amended by striking ``28 
        percent'' and inserting ``20 percent'' each place it appears.
            (3) Section 1(h) of such Code is amended by striking ``28-
        percent'' and inserting ``20-percent'' each place it appears.
            (4) Sections 531 and 541 of such Code are each amended by 
        striking ``39.6 percent'' and inserting ``30 percent''.
            (5) Section 3402(p)(1)(B) of such Code is amended by 
        striking ``15, 28, or 31'' and inserting ``10, 20, or 30''.
            (6) Section 3402(p)(2) of such Code is amended by striking 
        ``15 percent'' and inserting ``10 percent''.
            (7) Section 3402(q)(1) of such Code is amended by striking 
        ``28 percent'' and inserting ``20 percent''.
            (8) Section 3402(r)(3) of such Code is amended by striking 
        ``31 percent'' and inserting ``20 percent''.
            (9) Section 3406(a)(1) of such Code is amended by striking 
        ``31 percent'' and inserting ``20 percent''.
    (f) Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall apply to taxable 
        years beginning after December 31, 1999.
            (2) Withholding.--The amendments made by paragraphs (5) 
        through (9) of subsection (e) shall apply to amounts paid after 
        December 31, 1999.
            (3) Conforming amendment.--The amendment made by subsection 
        (d)(4) shall apply to taxable years beginning after December 
        31, 2001.
                                 <all>