[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2935 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2935

To amend the Internal Revenue Code of 1986 to increase the highest rate 
 of income tax imposed on individual taxpayers to 39.6 percent, and to 
  deposit the amounts received as a result of such increase into the 
                      social security trust funds.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 21, 2001

  Mr. Frank (for himself, Mr. Matsui, Mr. Larson of Connecticut, Mr. 
 Tierney, Mr. McDermott, Ms. Solis, Mr. Rodriguez, Ms. Jackson-Lee of 
    Texas, Mr. Obey, Ms. Schakowsky, Mr. Hinchey, Mr. McGovern, Mr. 
  Abercrombie, Ms. DeLauro, Mr. Delahunt, Mr. Bonior and Mr. LaFalce) 
 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 increase the highest rate 
 of income tax imposed on individual taxpayers to 39.6 percent, and to 
  deposit the amounts received as a result of such increase into the 
                      social security trust funds.

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

SECTION 1. INCREASE IN HIGHEST INDIVIDUAL INCOME TAX RATE; TRANSFERS OF 
              INCREASED REVENUE TO SOCIAL SECURITY TRUST FUNDS.

    (a) Increase in Rate.--The table contained in paragraph (2) of 
section 1(i) of the Internal Revenue Code of 1986 is amended in the 
column under the 39.6 percentage--
            (1) by striking ``38.6%'' and inserting ``39.6%'',
            (2) by striking ``37.6%'' and inserting ``39.6%'', and
            (3) by striking ``35.0%'' and inserting ``39.6%''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2001.
    (c) Section 15 Not To Apply.--The amendment made by subsection (a) 
shall not be treated as a change in the rate of a tax imposed by 
chapter 1 of the Internal Revenue Code of 1986 for purposes of section 
15 of such Code.
    (d) Transfers to Social Security Trust Funds.--
            (1) In general.--There are hereby appropriated to the 
        social security trust funds amounts equivalent to the aggregate 
        increase in revenues resulting from the amendment made by 
        subsection (a). Such amounts shall be allocated among such 
        trust funds in the same proportion as the taxes imposed by 
        chapters 2 and 21 of the Internal Revenue Code of 1986 are 
        allocated.
            (2) Transfers.--The amounts appropriated by paragraph (1) 
        shall be transferred from time to time (but not less frequently 
        than quarterly) from the general fund of the Treasury on the 
        basis of estimates made by the Secretary of the Treasury of the 
        amounts referred to in such paragraph. Proper adjustments shall 
        be made in the amounts subsequently transferred to the extent 
        prior estimates were in excess of or less than the amounts 
        required to be transferred.
            (3) Social security trust funds.--For purposes of this 
        subsection, the term ``social security trust funds'' means--
                    (A) the Federal Old-Age and Survivors Insurance 
                Trust Fund,
                    (B) the Federal Disability Insurance Trust Fund, 
                and
                    (C) the Federal Hospital Insurance Trust Fund.
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