[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 275 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 275
To amend the Internal Revenue Code of 1986 to repeal the adjusted gross
income limitations on itemized deductions, the personal exemption
deduction, and the child tax credit and to repeal the alternative
minimum tax on individuals.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 30, 2001
Mr. Sam Johnson of Texas (for himself, Mr. Crane, Mr. Goss, Mr. Armey,
and Mr. Terry) 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 repeal the adjusted gross
income limitations on itemized deductions, the personal exemption
deduction, and the child tax credit and to repeal the alternative
minimum tax on individuals.
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 ``Family Values Tax
Relief Act of 2001''.
(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.
SEC. 2. REPEAL OF OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.
(a) In General.--Section 68 (relating to overall limitation on
itemized deductions) is hereby repealed.
(b) Technical Amendments.--
(1) Subparagraph (A) of section 1(f)(6) is amended by
striking ``section 68(b)(2)''.
(2) Paragraph (1) of section 56(b) is amended by striking
subparagraph (F).
(3) Subparagraph (B) of section 773(a)(3) 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 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, 2000.
SEC. 3. REPEAL OF PHASEOUT OF PERSONAL EXEMPTIONS.
(a) In General.--Subsection (d) of section 151 (relating to
exemption amount) is amended by striking paragraph (3).
(b) Technical Amendments.--
(1) Paragraph (6) of section 1(f) 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) 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, 2000.
SEC. 4. REPEAL OF ADJUSTED GROSS INCOME LIMITATION IN CHILD TAX CREDIT.
(a) In General.--Section 24 (relating to child tax credit) is
amended by striking subsection (b) and by redesignating subsections (c)
through (f) as subsections (b) through (e), respectively.
(b) Conforming Amendment.--Clause (ii) of section 32(n)(1)(B) is
amended by striking ``section 24(d)'' and inserting ``section 24(c)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2000.
SEC. 5. REPEAL OF ALTERNATIVE MINIMUM TAX ON INDIVIDUALS.
(a) In General.--Subsection (a) of section 55 (relating to
alternative minimum tax imposed) is amended by adding at the end the
following new flush sentence:
``Except in the case of a corporation, no tax shall be imposed by this
section for any taxable year beginning after December 31, 2000, and the
tentative minimum tax of any taxpayer other than a corporation shall be
zero for purposes of this title.''
(b) Conforming Amendments.--
(1) Subparagraph (B) of section 1(g)(7) is amended by
adding ``and'' at the end of clause (i), by striking ``, and''
at the end of clause (ii) and inserting a period, and by
striking clause (iii).
(2) Section 2(d) is amended by striking ``sections 1 and
55'' and inserting ``section 1''.
(3) Section 5(a) is amended by striking paragraph (4).
(4) Subsection (c) of section 24, as redesignated by
section 4, is amended by striking paragraph (2) and by
redesignating paragraph (3) as paragraph (2).
(5)(A) Subsection (a) of section 26 is amended to read as
follows:
``(a) Limitation Based on Amount of Tax.--The aggregate amount of
credits allowed by this subpart for the taxable year shall not exceed
the taxpayer's regular tax liability for the taxable year.''
(B) Subsection (c) of section 26 is amended by inserting
before the period ``; except that such amount shall be treated
as being zero in the case of a taxpayer other than a
corporation.''
(6) Paragraph (6) of section 29(b) is amended to read as
follows:
``(6) Application with other credits.--The credit allowed
by subsection (a) for any taxable year shall not exceed the
regular tax for the taxable year reduced by the sum of the
credits allowable under subpart A and section 27. In the case
of a corporation, the limitation under the preceding sentence
shall be reduced (but not below zero) by the tentative minimum
tax for the taxable year.''.
(7) Paragraph (3) of section 30(b) is amended to read as
follows:
``(3) Application with other credits.--The credit allowed
by subsection (a) for any taxable year shall not exceed the
regular tax for the taxable year reduced by the sum of the
credits allowable under subpart A and sections 27 and 29. In
the case of a corporation, the limitation under the preceding
sentence shall be reduced (but not below zero) by the tentative
minimum tax for the taxable year.''.
(8) Section 32 is amended by striking subsection (h).
(9) Subsection (d) of section 53(d) is amended to read as
follows:
``(d) Definitions.--For purposes of this section--
``(1) Net minimum tax.--The term `net minimum tax' means
the tax imposed by section 55 increased by the amount of the
credit not allowed under section 29 (relating to credit for
producing fuel from a nonconventional source) solely by reason
of the application of the last sentence of section 29(b)(6), or
not allowed under section 30 solely by reason of the
application of the last sentence of section 30(b)(3).
``(2) Tentative minimum tax.--The term `tentative minimum
tax' has the meaning given to such term by section 55(b);
except that such tax shall be treated as being zero in the case
of a taxpayer other than a corporation.''.
(10)(A) Subsection (b) of section 55 (relating to
alternative minimum tax imposed) is amended to read as follows:
``(b) Tentative Minimum Tax.--For purposes of this part--
``(1) Amount of tentative tax.--The tentative minimum tax
for the taxable year is--
``(A) 20 percent of so much of the alternative
minimum taxable income for the taxable year as exceeds
the exemption amount, reduced by
``(B) the alternative minimum tax foreign tax
credit for the taxable year.
``(2) Alternative minimum taxable income.--The term
`alternative minimum taxable income' means the taxable income
of the taxpayer for the taxable year--
``(A) determined with the adjustments provided in
section 56, and
``(B) increased by the amount of the items of tax
preference described in section 57.
If a taxpayer is subject to the regular tax, such taxpayer
shall be subject to the tax imposed by this section (and, if
the regular tax is determined by reference to an amount other
than taxable income, such amount shall be treated as the
taxable income of such taxpayer for purposes of the preceding
sentence).''.
(B) Subsection (d) of section 55 is amended to read as
follows:
``(d) Exemption Amount.--For purposes of this section--
``(1) In general.--The term `exemption amount' means
$40,000.
``(2) Phase-out of exemption amount.--The exemption amount
of any taxpayer shall be reduced (but not below zero) by an
amount equal to 25 percent of the amount by which the
alternative minimum taxable income of the taxpayer exceeds
$150,000.''.
(11)(A) Paragraph (6) of section 56(a) is amended to read
as follows:
``(6) Adjusted basis.--The adjusted basis of any property
to which paragraph (1) or (5) applies (or with respect to which
there are any expenditures to which paragraph (2) applies)
shall be determined on the basis of the treatment prescribed in
paragraph (1), (2), or (5), whichever applies.''.
(B) Section 56 is amended by striking subsection (b).
(C) Subsection (c) of section 56 is amended by striking so
much of the subsection as precedes paragraph (1), by
redesignating paragraphs (1), (2), and (3) as paragraphs (8),
(9), and (10), respectively, and moving them to the end of
subsection (a).
(D) Paragraph (8) of section 56(a), as redesignated by
subparagraph (C), is amended by striking ``subsection (g)'' and
inserting ``subsection (c)''.
(E) Section 56 is amended by striking subsection (e) and by
redesignating subsections (d) and (g) as subsections (b) and
(c), respectively.
(12)(A) Section 58 is hereby repealed.
(B) Clause (i) of section 56(b)(2)(A) (as redesignated by
paragraph (11)(E)), is amended by inserting ``, in the case of
taxable years beginning before January 1, 2001,'' before
``section 58''.
(C) Subsection (h) of section 59 is amended--
(i) by striking ``, 465, and 1366(d)'' and
inserting ``and 465'', and
(ii) by striking ``56, 57, and 58'' and inserting
``56 and 57''.
(13)(A) Subparagraph (C) of section 59(a)(1) is amended by
striking ``subparagraph (A)(i) or (B)(i) of section 55(b)(1)
(whichever applies)'' and inserting ``section 55(b)(1)(A)''.
(B) Paragraph (3) of section 59(a) is amended to read as
follows:
``(3) Pre-credit tentative minimum tax.--For purposes of
this subsection, the term `pre-credit tentative minimum tax'
means the amount determined under section 55(b)(1)(A).''.
(C) Section 59 is amended by striking subsection (c).
(D) Section 59 is amended by striking subsection (j).
(14) Paragraph (7) of section 382(l) is amended by striking
``section 56(d)'' and inserting ``section 56(b)''.
(15) Paragraph (2) of section 641(c) is amended by striking
subparagraph (B) and by redesignating subparagraphs (C) and (D)
as subparagraphs (B) and (C), respectively.
(16) Subsections (b) and (c) of section 666 are each
amended by striking ``(other than the tax imposed by section
55)''.
(17) Subsections (c)(5) and (d)(3)(B) of section 772 are
each amended by striking ``56, 57, and 58'' and inserting ``56
and 57''.
(18) Sections 847 and 848(i) are each amended by striking
``section 56(g)'' and inserting ``section 56(c)''.
(19) Sections 871(b)(1) and 877(b) are each amended by
striking ``or 55''.
(20) Subsection (a) of section 897 is amended to read as
follows:
``(a) General Rule.--For purposes of this title, gain or loss of a
nonresident alien individual or a foreign corporation from the
disposition of a United States real property interest shall be taken
into account--
``(1) in the case of a nonresident alien individual, under
section 871(b)(1), or
``(2) in the case of a foreign corporation, under section
882(a)(1),
as if the taxpayer were engaged in a trade or business within the
United States during the taxable year and as if such gain or loss were
effectively connected with such trade or business.''.
(21) Paragraph (1) of section 962(a) is amended by striking
``sections 1 and 55'' and inserting ``section 1''.
(22) Paragraph (1) of section 1397E(c) is amended to read
as follows:
``(1) the regular tax liability (as defined in section
26(b), over''.
(23) The last sentence of section 1563(a) is amended by
striking ``section 55(d)(3)'' and inserting ``section
55(d)(2)''.
(24) Subparagraph (B) of section 6015(d)(2) is amended by
striking ``or 55''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2000.
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