[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2042 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2042

To amend the Internal Revenue Code of 1986 to eliminate the tax on the 
         net capital gain of taxpayers other than corporations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                 May 26 (Legislative day, May 25), 2001

 Mr. Knollenberg 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 eliminate the tax on the 
         net capital gain of taxpayers other than corporations.

    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 ``Job Creation Act of 2001''.

SEC. 2. EXCLUSION OF NET CAPITAL GAIN OF TAXPAYERS OTHER THAN 
              CORPORATIONS.

    (a) In General.--Part I of subchapter P of chapter 1 of the 
Internal Revenue Code of 1986 (relating to treatment of capital gains) 
is amended by adding at the end the following new section:

``SEC. 1203. EXCLUSION OF NET CAPITAL GAIN OF TAXPAYERS OTHER THAN 
              CORPORATIONS.

    ``In the case of a taxpayer other than a corporation, gross income 
shall not include an amount equal to the net capital gain of the 
taxpayer for the taxable year.''
    (b) Conforming Amendments.--
            (1) Section 1 of such Code is amended by striking 
        subsection (h).
            (2) Subsection (b) of section 55 of such Code is amended by 
        striking paragraph (3).
            (3) Section 1222 of such Code is amended by adding at the 
        end the following new sentence:
``Determinations under this section shall be made before the 
application of section 1203.''
            (4) The table of sections for part I of subchapter P of 
        chapter 1 of such Code is amended by adding at the end the 
        following new item:

                              ``Sec. 1203. Exclusion of net capital 
                                        gain of taxpayers other than 
                                        corporations.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.
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