[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 481 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 481

To amend the Internal Revenue Code of 1986 to provide for a 10-percent 
            income tax rate bracket, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 7, 2001

Mr. Graham (for himself and Mr. Corzine) 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 provide for a 10-percent 
            income tax rate bracket, and for other purposes.

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

SECTION 1. SHORT TITLE; ETC.

    (a) Short Title.--This Act may be cited as the ``Economic Insurance 
Tax Cut 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.
    (c) Section 15 Not To Apply.--No amendment made by this Act shall 
be treated as a change in a rate of tax for purposes of section 15 of 
the Internal Revenue Code of 1986.

SEC. 2. 10-PERCENT INCOME TAX RATE BRACKET FOR INDIVIDUALS.

    (a) Rates for 2001.--Section 1 (relating to tax imposed) is amended 
by striking subsections (a) through (d) 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 $19,000...............
                                        10% of taxable income.
    Over $19,000 but not over 
        $45,200.
                                        $1,900, plus 15% of the excess 
                                                over $19,000.
    Over $45,200 but not over 
        $109,250.
                                        $5,830, plus 28% of the excess 
                                                over $45,200.
    Over $109,250 but not over 
        $166,500.
                                        $23,764, plus 31% of the excess 
                                                over $109,250.
    Over $166,500 but not over 
        $297,350.
                                        $41,511.50, plus 36% of the 
                                                excess over $166,500.
    Over $297,350..................
                                        $88,617.50, plus 39.6% of the 
                                                excess over $297,350.
    ``(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 $14,250...............
                                        10% of taxable income.
    Over $14,250 but not over 
        $36,250.
                                        $1,425, plus 15% of the excess 
                                                over $14,250.
    Over $36,250 but not over 
        $93,650.
                                        $4,725, plus 28% of the excess 
                                                over $36,250.
    Over $93,650 but not over 
        $151,650.
                                        $20,797, plus 31% of the excess 
                                                over $93,650.
    Over $151,650 but not over 
        $297,350.
                                        $38,777, plus 36% of the excess 
                                                over $151,650.
    Over $297,350..................
                                        $91,229, plus 39.6% of the 
                                                excess over $297,350.
    ``(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 surviving spouse as defined in section 2(a) or 
the head of a household as defined in section 2(b)) who is not a 
married individual (as defined in section 7703) a tax determined in 
accordance with the following table:

``If taxable income is:             The tax is:
    Not over $9,500................
                                        10% of taxable income.
    Over $9,500 but not over 
        $27,050.
                                        $950, plus 15% of the excess 
                                                over $9,500.
    Over $27,050 but not over 
        $65,550.
                                        $3,582.50, plus 28% of the 
                                                excess over $27,050.
    Over $65,550 but not over 
        $136,750.
                                        $14,362.50, plus 31% of the 
                                                excess over $65,550.
    Over $136,750 but not over 
        $297,350.
                                        $36,434.50, plus 36% of the 
                                                excess over $136,750.
    Over $297,350..................
                                        $94,250.50, plus 39.6% of the 
                                                excess over $297,350.
    ``(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 $9,500................
                                        10% of taxable income.
    Over $9,500 but not over 
        $22,600.
                                        $950, plus 15% of the excess 
                                                over $9,500.
    Over $22,600 but not over 
        $54,625.
                                        $2,915, plus 28% of the excess 
                                                over $22,600.
    Over $54,625 but not over 
        $83,250.
                                        $11,882, plus 31% of the excess 
                                                over $54,625.
    Over $83,250 but not over 
        $148,675.
                                        $20,755.75, plus 36% of the 
                                                excess over $83,250.
    Over $148,675..................
                                        $44,308.75, plus 39.6% of the 
                                                excess over 
                                                $148,675.''.
    (b) Inflation Adjustment To Apply in Determining Rates for 2002.--
Subsection (f) of section 1 is amended--
            (1) by striking ``1993'' in paragraph (1) and inserting 
        ``2001'',
            (2) by striking ``1992'' in paragraph (3)(B) and inserting 
        ``2000'', and
            (3) by striking paragraph (7).
    (c) Conforming Amendments.--
            (1) The following provisions are each amended by striking 
        ``1992'' and inserting ``2000'' each place it appears:
                    (A) Section 25A(h).
                    (B) Section 32(j)(1)(B).
                    (C) Section 41(e)(5)(C).
                    (D) Section 42(h)(3)(H)(i)(II).
                    (E) Section 59(j)(2)(B).
                    (F) Section 63(c)(4)(B).
                    (G) Section 68(b)(2)(B).
                    (H) Section 132(f)(6)(A)(ii).
                    (I) Section 135(b)(2)(B)(ii).
                    (J) Section 146(d)(2)(B).
                    (K) Section 151(d)(4).
                    (L) Section 220(g)(2).
                    (M) Section 221(g)(1)(B).
                    (N) Section 512(d)(2)(B).
                    (O) Section 513(h)(2)(C)(ii).
                    (P) Section 685(c)(3)(B).
                    (Q) Section 877(a)(2).
                    (R) Section 911(b)(2)(D)(ii)(II).
                    (S) Section 2032A(a)(3)(B).
                    (T) Section 2503(b)(2)(B).
                    (U) Section 2631(c)(2).
                    (V) Section 4001(e)(1)(B).
                    (W) Section 4261(e)(4)(A)(ii).
                    (X) Section 6039F(d).
                    (Y) Section 6323(i)(4)(B).
                    (Z) Section 6334(g)(1)(B).
                    (AA) Section 6601(j)(3)(B).
                    (BB) Section 7430(c)(1).
            (2) Subclause (II) of section 42(h)(6)(G)(i) is amended by 
        striking ``1987'' and inserting ``2000''.
    (d) Additional Conforming Amendments.--
            (1) Section 1(g)(7)(B)(ii)(II) is amended by striking ``15 
        percent'' and inserting ``10 percent''.
            (2) Section 1(h) is amended by striking paragraph (13).
            (3) Section 3402(p)(1)(B) is amended by striking ``7, 15, 
        28, or 31 percent'' and inserting ``5, 10, 15, 28, or 31 
        percent''.
            (4) Section 3402(p)(2) is amended by striking ``15 
        percent'' and inserting ``10 percent''.
    (e) Determination of Withholding Tables.--Section 3402(a) (relating 
to requirement of withholding) is amended by adding at the following 
new paragraph:
            ``(3) Changes made by section 2 of the economic insurance 
        tax cut of 2001.--Notwithstanding the provisions of this 
        subsection, the Secretary shall modify the tables and 
        procedures under paragraph (1) through the reduction of the 
        amount of withholding required with respect to taxable years 
        beginning in calendar year 2001 to reflect the effective date 
        of the amendments made by section 2 of the Economic Insurance 
        Tax Cut of 2001, and such modification shall take effect on the 
        first day of the first month beginning after the date of the 
        enactment of such Act.''
    (f) 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, 2000.
            (2) Amendments to withholding provisions.--The amendments 
        made by paragraphs (3) and (4) of subsection (d) shall apply to 
        amounts paid after December 31, 2000.
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