[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1074 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1074

  To amend the Internal Revenue Code of 1986 to reduce the corporate 
 income tax rate to 10 percent and to lower the rate of tax on capital 
                   gains and dividends to 10 percent.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 14, 2011

  Mr. Tipton 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 reduce the corporate 
 income tax rate to 10 percent and to lower the rate of tax on capital 
                   gains and dividends to 10 percent.

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

SECTION 1. CORPORATE INCOME TAX RATE REDUCED TO 10 PERCENT.

    (a) In General.--Paragraph (1) of section 11(b) of the Internal 
Revenue Code of 1986 is amended by striking ``shall be the sum of--'' 
and all that follows through the period at the end and inserting 
``shall be 10 percent of taxable income.''.
    (b) Personal Service Corporations.--Paragraph (2) of section 11(b) 
of such Code is amended by striking ``35 percent'' and inserting ``10 
percent''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

SEC. 2. TEN PERCENT CAPITAL GAINS RATE FOR INDIVIDUALS AND 
              CORPORATIONS.

    (a) Ten Percent Capital Gains Rate for Individuals.--
            (1) In general.--Subparagraph (C) of section 1(h)(1) of the 
        Internal Revenue Code of 1986 is amended by striking ``15 
        percent'' and inserting ``10 percent''.
            (2) Alternative minimum tax.--Subparagraph (C) of section 
        55(b)(3) of such Code is amended by striking ``15 percent'' and 
        inserting ``10 percent''.
            (3) Repeal of sunset of reduction in capital gains rates 
        for individuals.--Section 303 of the Jobs and Growth Tax Relief 
        Reconciliation Act of 2003 shall not apply to section 301 of 
        such Act.
    (b) Ten Percent Capital Gains Rate for Corporations.--
            (1) In general.--Subsection (a) of section 1201 of such 
        Code is amended by striking ``35 percent'' each place it 
        appears and inserting ``10 percent''.
            (2) Alternative minimum tax.--Section 55(b) of such Code is 
        amended by adding at the end the following new paragraph:
            ``(4) Maximum rate of tax on net capital gain of 
        corporations.--The amount determined under paragraph (1)(B)(i) 
        shall not exceed the sum of--
                    ``(A) the amount determined under such paragraph 
                computed at the rates and in the same manner as if this 
                paragraph had not been enacted on the taxable excess 
                reduced by the net capital gain, plus
                    ``(B) the amount determined under section 1201.''.
            (3) Technical amendments.--
                    (A) Section 1445(e)(1) of such Code is amended by 
                striking ``35 percent (or, to the extent provided in 
                regulations, 15 percent)'' and inserting ``10 
                percent''.
                    (B) Section 1445(e)(2) of such Code is amended by 
                striking ``35 percent'' and inserting ``10 percent''.
                    (C) Section 7518(g)(6)(A) of such Code is amended 
                by striking ``15 percent (34 percent in the case of a 
                corporation)'' and inserting ``10 percent''.
                    (D) Section 607(h)(6)(A) of the Merchant Marine 
                Act, 1936 is amended by striking ``15 percent (34 
                percent in the case of a corporation)'' and inserting 
                ``10 percent''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        ending after the date of the enactment of this Act.
            (2) Withholding.--The amendments made by subparagraphs (A) 
        and (B) of subsection (b)(3) shall take apply to dispositions 
        and distributions after the date of the enactment of this Act.
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