[Congressional Record Volume 141, Number 58 (Wednesday, March 29, 1995)]
[House]
[Page H3978]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                               AMENDMENTS

  Under clause 6 of rule XXIII, proposed amendments were submitted as 
follows:

                               H.R. 1215

                        Offered By: Mr. Goodling

       Amendment No. 3: In section 23 of the Internal Revenue Code 
     of 1986 (relating to family tax credit), as proposed to be 
     added by section 101 of the bill--
       (1) strike ``$200,000'' each place it appears and insert 
     ``$95,000'',
       (2) strike ``100 times'' in subsection (b)(2) of such 
     section 23 and insert ``50 times'',
       (3) strike subsection (d) of such section 23 (relating to 
     inflation adjustment), and
       (4) redesignate subsection (e) as subsection (d).

                               H.R. 1215

                        Offered By: Mr. Sanders

       Amendment No. 4: Strike sections 103 and 104 of the bill 
     and insert after section 102 the following new subtitle (and 
     conform the table of contents accordingly):

               Subtitle B--Middle Class Flexible Savings

     SEC. 111. HIGHER MAXIMUM IRA DEDUCTION AND INCOME PHASEOUT 
                   LIMITS; INFLATION ADJUSTMENT OF MAXIMUM IRA 
                   DEDUCTION AND PHASE-OUT LIMITS.

       (a) Higher Maximum IRA Deduction.--
       (1) In general.--The following provisions of the Internal 
     Revenue Code of 1986 are each amended by striking ``$2,000'' 
     and inserting ``$3,000'':
       (A) Subsections (b)(1)(A) and (c)(2) of section 219.
       (B) Subsections (a)(1), (b), and (j) of section 408.
       (2) Conforming amendment.--Sections 219(c)(2) and 408(d)(5) 
     are each amended by striking ``$2,250'' and inserting 
     ``$3,500''.
       (b) Higher Income Phaseout Limits.--
       (1) Subparagraph (B) of section 219(g)(3) is amended--
       (A) by striking ``$40,000'' and inserting ``$60,000'', and
       (B) by striking ``$25,000'' and inserting ``$40,000''.
       (2) Clause (ii) of section 219(g)(2)(A) is amended to read 
     as follows:
       ``(ii) $15,000.''
       (c) Inflation Adjustment of Maximum IRA Deduction and 
     Income Phaseout Limits.--Section 219 is amended by inserting 
     after subsection (f) the following new subsection:
       ``(g) Inflation Adjustment of Maximum Deduction and Income 
     Phaseout Limits.--
       ``(1) In general.--In the case of any taxable year 
     beginning in a calendar year after 1995, each applicable 
     dollar amount shall be increased by an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment under section 1(f)(3) 
     for the calendar year in which the taxable year begins, 
     determined by substituting `calendar year 1994' for `calendar 
     year 1992' in subparagraph (B) thereof.
       ``(2) Applicable dollar amount.--For purposes of paragraph 
     (1), the term `applicable dollar amount' means--
       ``(A) the $3,000 amount in subsections (b)(1)(A), (c)(2), 
     and (c)(3) of this section and in subsections (a)(1), (b) and 
     (j) of section 408,
       ``(B) the $3,500 amount in subsection (c)(2) of this 
     section and in section 408(d)(5),
       ``(C) the $60,000 and $40,000 amounts in subsection 
     (g)(3)(B), and
       ``(D) the $15,000 amount in subsection (g)(2)(A)(ii).
       ``(3) Rounding.--If any amount as adjusted under paragraph 
     (1) is not a multiple of $50, such amount shall be rounded to 
     the nearest multiple of $50.''
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1994.

     SEC. 112. IRA FOR NONWORKING SPOUSE WITH YOUNG CHILDREN 
                   COMPUTED ON BASIS OF COMPENSATION OF BOTH 
                   SPOUSES.

       ``(a) In General.--Subsection (c) of section 219 (relating 
     to special rules for certain married individuals) is amended 
     by adding at the end thereof the following new paragraph:
       ``(3) Higher limit for spouse with young children.--
       ``(A) In general.--In the case of a qualifying spouse, the 
     amount allowable as a deduction under paragraph (1) shall not 
     exceed the lesser of--
       ``(i) $3,000, or
       ``(ii) the sum of--
       ``(I) the compensation includible in such individual's 
     gross income for the taxable year, plus
       ``(II) the compensation includible in the gross income of 
     such individual's spouse for the taxable year reduced by the 
     amount allowable as a deduction under subsection (a) to such 
     spouse for such taxable year.
       ``(B) Qualifying spouse.--For purposes of subparagraph (A), 
     the term `qualifying spouse' means any spouse of an 
     individual if--
       ``(i) such individual and spouse file a joint return for 
     the taxable year,
       ``(ii) such spouse has less than $1,000 of compensation 
     (determined without regard to section 911) for the taxable 
     year, and
       ``(iii) such spouse has a child (as defined in section 
     151(c)(3)) who has not attained age 6 
      [[Page H3976]] as of the close of such taxable year and who 
     is a dependent (as defined in section 152) of the taxpayer 
     for such year.''
       ``(b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1994.

     SEC. 113. PENALTY-FREE WITHDRAWALS FROM CERTAIN PLANS TO PAY 
                   EDUCATIONAL EXPENSES, MEDICAL EXPENSES, 
                   BUSINESS START-UP EXPENSES, AND FIRST-TIME 
                   HOMEBUYER EXPENSES.

       ``(a) Educational Expenses and Business Startup Expenses.--
       (1) In general.--Paragraph (2) of section 72(t) (relating 
     to exceptions to 10-percent additional tax on early 
     distributions from qualified retirement plans) is amended by 
     adding at the end thereof the following new subparagraph:
       ``(D) Distributions from certain plans for educational 
     expenses and business start-up expenses.--
       ``(i) In general.--Distributions to an individual from an 
     individual retirement plan, or from amounts attributable to 
     employer contributions made pursuant to elective deferrals 
     described in subparagraph (A) or (C) of section 402(g)(3) or 
     section 501(c)(18)(D)(iii) to the extent such distributions 
     do not exceed the sum of--
       ``(I) the qualified higher education expenses (as defined 
     in paragraph (6)) of the taxpayer for the taxable year, and
       ``(II) the start-up expenditures (as defined in section 
     195(c)) of the taxpayer for the taxable year.
       ``(ii) Adjusted gross income limit.--Clause (i) shall apply 
     to distributions from an individual retirement plan only if 
     the adjusted gross income of the distributee for the taxable 
     year in which the distribution occurs does not exceed--
       ``(I) $60,000 in the case of an unmarried individual,
       ``(II) $80,000 in the case of a joint return, and
       ``(III) $40,000 in the case of a married individual filing 
     a separate return.''
       (2) Qualified higher education expenses defined.--Section 
     72(t) is amended by adding at the end thereof the following 
     new paragraph:
       ``(6) Qualified higher education expenses.--For purposes of 
     paragraph (2)(D)--
       ``(A) In general.--The term `qualified higher education 
     expenses' means tuition, fees, books, supplies, and equipment 
     required for the enrollment or attendance of--
       ``(i) the taxpayer,
       ``(ii) the taxpayer's spouse, or
       ``(iii) a child (as defined in section 151(c)(3)) of the 
     taxpayer,

     at an eligible educational institution (as defined in section 
     135(c)(3)).
       ``(B) Coordination with savings bond provisions.--The 
     amount of qualified higher education expenses for any taxable 
     year shall be
      reduced by any amount excludable from gross income under 
     section 135.''
       (b) Catastrophic Illness Expenses.--Subparagraph (A) of 
     section 72(t)(3) is amended to read as follows:
       ``(A) Certain exceptions not to apply to individual 
     retirement plans.--
       ``(i) In general.--Except as provided in clause (ii), 
     subparagraphs (A)(v), (B), and (C) of paragraph (2) shall not 
     apply to distributions from an individual retirement plan.
       ``(ii) Distributions for medical expenses from certain 
     individual retirement plans.--Subparagraph (B) of paragraph 
     (2) shall apply to distributions from an individual retirment 
     plan if the adjusted gross income of the distributee for the 
     taxable year in which the distribution occurs does not exceed 
     the applicable limitation under paragraph (2)(D).''
       (c) Penalty-Free Distributions for Certain Unemployed 
     Individuals.--Paragraph (2) of section 72(t) (as amended by 
     the preceding provisions of this section) is amended further 
     by adding at the end the following new subparagraph:
       ``(E) Distributions to unemployed individuals.--A 
     distribution from an individual retirement plan to an 
     individual after separation from employment, if--
       ``(i) such individual has received unemployment 
     compensation for 12 consecutive weeks under any Federal or 
     State unemployment compensation law by reason of such 
     separation, and
       ``(ii) such distributions are made during any taxable year 
     during which such unemployment compensation is paid or the 
     succeeding taxable year.''
       (d) Expenses for First-Time Homebuyers.--
       (1) In general.--Paragraph (2) of section 72(t) (as amended 
     by the preceding provisions of this section) is amended 
     further by adding at the end the following new subparagraph:
       ``(F) Distributions from individual retirement plans for 
     first-time homebuyers.--
       ``(i) In general.--Distributions to an individual from an 
     individual retirement plan which are qualified first-time 
     homebuyer distributions (as defined in paragraph (7)).
       ``(ii) Adjusted gross income limit.--Clause (i) shall apply 
     to distributions from an individual retirement plan only if 
     the adjusted gross income of the distributee for the taxable 
     year in which the distribution occurs does not exceed--
       ``(I) $60,000 in the case of an unmarried individual,
       ``(II) $80,000 in the case of a joint return, and
       ``(III) $40,000 in the case of a married individual filing 
     a separate return.''
       (2) Definition.--Section 72(t) (as amended by the preceding 
     provisions of this section) is amended further by adding at 
     the end the following new paragraph:
       ``(7) Qualified first-time homebuyer distributions.--For 
     purposes of paragraph (2)(F)(i)--
       ``(A) In general.--The term `qualified first-time homebuyer 
     distribution' means any
      payment or distribution received by an individual to the 
     extent such payment or distribution is used by the 
     individual before the close of the 60th day after the day 
     on which such payment or distribution is received to pay 
     qualified acquisition costs with respect to a principal 
     residence of a first-time homebuyer who is such individual 
     or such individual's spouse.
       ``(B) Qualified acquisition costs.--For purposes of this 
     paragraph, the term `qualified acquisition costs' means the 
     costs of acquiring, constructing, or reconstructing a 
     residence. Such term includes any usual or reasonable 
     settlement, financing, or other closing costs.
       ``(C) First-time homebuyer; other definitions.--For 
     purposes of this paragraph--
       ``(i) First-time homebuyer.--The term `first-time 
     homebuyer' means any individual if such individual (and if 
     married, such individual's spouse) had no present ownership 
     interest in a principal residence during the 10-year period 
     ending on the date of acquisition of the principal residence 
     to which this paragraph applies.
       ``(ii) Principal residence.--The term `principal residence' 
     has the same meaning as when used in section 1034.
       `(iii) Date of acquisition.--The term `date of acquisition' 
     means the date--
       ``(I) on which a binding contract to acquire the principal 
     residence to which subparagraph (A) applies is entered into, 
     or
       ``(II) on which construction or reconstruction of such a 
     principal residence is commenced.
       ``(D) Special rule where delay in acquisition.--If any 
     distribution from any individual retirement plan fails to 
     meet the requirements of subparagraph (A) solely by reason of 
     a delay or cancellation of the purchase or construction of 
     the residence, the amount of the distribution may be 
     contributed to an individual retirement plan as provided in 
     section 408(d)(3)(A)(i) (determined by substituting `120 
     days' for `60 days' in such section), except that--
       ``(i) section 408(d)(3)(B) shall not be applied to such 
     contribution, and
       ``(ii) such amount shall not be taken into account in 
     determining whether section 408(d)(3)(A)(i) applies to any 
     other amount.''
       (e) Conforming Amendments.--
       (1) Section 401(k)(2)(B)(i) is amended by striking ``or'' 
     at the end of subclause (III), by striking ``and'' at the end 
     of subclause (IV) and inserting ``or'', and by inserting 
     after subclause (IV) the following new subclause:
       ``(V) the date on which distributions for qualified higher 
     education expenses (as defined in section 72(t)(6)) or start-
     up expenses (as defined in section 195(c)) or qualified 
     first-time homebuyer distributions (as defined in section 
     72(t)(7)(A)) are made, and''.
       (2) Section 403(b)(11) is amended by striking ``or'' at the 
     end of subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, or'', and by inserting 
     after subparagraph (B) the following new subparagraph:
       ``(C) for the payment of qualified higher education 
     expenses (as defined in section 72(t)(6)), start-up expenses 
     (as defined in section 195(c)), or qualified acquisition 
     costs (as defined in section 72(t)(7)) with respect to a 
     principal residence (as so defined) of a first-time homebuyer 
     (as so defined).''
       (f) Effective Date.--The amendments made by this section 
     shall apply to payments and distributions after the date of 
     the enactment of this Act.
       After the title heading for title I of the bill insert the 
     following (and conform the table of contents accordingly):

    Subtitle A--Family Tax Credit; Credit to Reduce Marriage Penalty

       At the end of title III of the bill insert the following 
     new subtitle:

   Subtitle F--Minimum Tax on Foreign and Foreign-Owned Corporations

     SEC. 361. MINIMUM TAX ON FOREIGN AND FOREIGN-OWNED 
                   CORPORATIONS.

       (a) In General.--Subchapter A of chapter 1 (relating to 
     determination of tax liability) is amended by adding at the 
     end thereof the following new part:

     ``Part VIII--Minimum Tax on Certain Foreign and Foreign-Owned 
                              Corporations
``Sec. 59B. Minimum tax on certain foreign and foreign-owned 
              corporations.
     ``SEC. 59B. MINIMUM TAX ON CERTAIN FOREIGN AND FOREIGN-OWNED 
                   CORPORATIONS.

       ``(a) Imposition of Tax.--In the case of a corporation to 
     which this section applies, there is hereby imposed (in 
     addition to any other tax imposed by this subtitle) a tax 
     equal to the excess (if any) of--
       ``(1) 35 percent of the product of--
       ``(A) 9 percent, and
       ``(B) an amount equal to 75 percent of the gross receipts 
     of the taxpayer from the sale or leasing of property 
     manufactured by the taxpayer or by any foreign person that is 
     a related party of the taxpayer, over
       ``(2) the aggregate tax imposed under sections 11, 55, and 
     1201 for such year.
       [[Page H3977]] ``(b) Taxpayers to Which Section Applies.--
     This section shall apply to a corporation for the taxable 
     year if--
       ``(1) such corporation is--
       ``(A) a domestic corporation which is 25-percent foreign-
     owned, or
       ``(B) a foreign corporation engaged in a trade or business 
     within the United States, and
       ``(2) the gross receipts from the sale or leasing of 
     property manufactured by the such corporation or by any 
     foreign person that is a related party of such corporation 
     are greater than the lesser of--
       ``(A) $2,000,000, or
       ``(B) an amount equal to 10 percent of the total gross 
     receipts of such corporation.
       ``(c) Definitions.--For purposes of this section, the term 
     `25-percent foreign-owned', `foreign person', and `related 
     party' have the respective meanings given such terms by 
     section 6038A(c).''
       (b) Clerical Amendment.--The table of parts for such 
     subchapter A is amended by adding at the end thereof the 
     following new item:

``Part VIII. Minimum tax on certain foreign and foreign-owned 
              corporations.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1994.

                               H.R. 1215

                       Offered By: Mr. Traficant

       Amendment No. 5; At the end of title III of the bill insert 
     the following new subtitle (and conform the table of contents 
     accordingly):

                   Subtitle F--Investment for America

     SEC. 361. REINSTATEMENT OF 10-PERCENT DOMESTIC INVESTMENT TAX 
                   CREDIT.

       (a) Allowance of Credit.--Section 46 (relating to amount of 
     investment credit) is amended by striking ``and'' at the end 
     of paragraph (2), by striking the period at the end of 
     paragraph (3) and inserting ``, and'', and by adding at the 
     end thereof the following new paragraph:
       ``(4) the domestic investment credit.''
       (b) Amount of Credit.--Section 48 is amended by adding at 
     the end thereof the following new subsection:
       ``(c) Domestic Investment Credit.--
       ``(1) In general.--For purposes of section 46, the domestic 
     investment credit for any taxable year is an amount equal to 
     10 percent of the qualified investment for such taxable year.
       ``(2) Qualified investment.--
       ``(A) In general.--For purposes of paragraph (1), the 
     qualified investment for any taxable year is the aggregate 
     of--
       ``(i) the applicable percentage of the basis of each new 
     domestic section 38 property placed in service by the 
     taxpayer during such taxable year, plus
       ``(ii) the applicable percentage of the cost of each used 
     domestic section 38 property placed in service by the 
     taxpayer during such taxable year.
       ``(B) Applicable percentage.--For purposes of subparagraph 
     (A), the applicable percentage for any property shall be 
     determined under paragraphs (2) and (7) of section 46(c) (as 
     in effect on the day before the date of the enactment of the 
     Revenue Reconciliation Act of 1990).
       ``(C) Certain rules made applicable.--The provisions of 
     subsections (b) and (c) of section 48 (as in effect on the 
     day before the date of the enactment of the Revenue 
     Reconciliation Act of 1990) shall apply for purposes of this 
     paragraph.
       ``(3) Domestic section 38 property.--For purposes of this 
     subsection, the term `domestic section 38 property' means any 
     section 38 property if--
       ``(A) the property was completed in the United States, and
       ``(B) more than 50 percent of the basis of the property is 
     attributable to value added within the United States.

     For purposes of the preceding sentence, the term `United 
     States' includes the Commonwealth of Puerto Rico and the 
     possessions of the United States.
       ``(4) Section 38 property.--For purposes of this 
     subsection, the term `section 38 property' means--
       ``(A) tangible personal property (other than an air 
     conditioning or heating unit), or
       ``(B) other tangible property (not including a building and 
     its structural components) but only if such property--
       ``(i) is used as an integral part of manufacturing, 
     production, or extraction or of furnishing transportation, 
     communications, electrical energy, gas, water, or sewage 
     disposal services, or
       ``(ii) constitutes a research facility used in connection 
     with any of the activities referred to in clause (i), or
       ``(iii) constitutes a facility used in connection with any 
     of the activities referred to in clause (i) for the bulk 
     storage of fungible commodities (including commodities in a 
     liquid or gaseous state), or
       ``(C) elevators and escalators, but only if--
       ``(i) the construction, reconstruction, or erection of the 
     elevator or escalator is completed by the taxpayer, or
       ``(ii) the original use of such elevator or escalator 
     commences with the taxpayer, or
       ``(D) single purpose agricultural or horticultural 
     structures; or
       ``(E) a storage facility (not including a building and its 
     structural components) used in connection with the 
     distribution of petroleum or any primary product of 
     petroleum.

     Such term includes only property to which section 168 applies 
     without regard to any useful life and any other property with 
     respect to which depreciation (or amortization in lieu of 
     depreciation) is allowable and having a useful life 
     (determined as of the time such property is placed in 
     service) of 3 years or more.
       ``(5) Coordination with other credits.--This subsection 
     shall not apply to any property to which the energy credit or 
     rehabilitation credit would apply unless the taxpayer elects 
     to waive the application of such credits to such property.
       ``(6) Certain progress expenditure rules made applicable.--
     Rules similar to rules of subsection (c)(4) and (d) of 
     section 46 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of this subsection.''
       (c) Technical Amendments.--
       (1) Subparagraph (C) of section 49(a)(1) is amended by 
     striking ``and'' at the end of clause (ii), by striking the 
     period at the end of clause (iii) and inserting ``, and'', 
     and by adding at the end thereof the following new clause:
       ``(iv) the basis of any new domestic section 38 property 
     and the cost of any used domestic section 38 property.''
       (2) Subparagraph (E) of section 50(a)(2) is amended by 
     inserting ``or 48(c)(6)'' before the period at the end 
     thereof.
       (3) Paragraph (5) of section 50(a) is amended by adding at 
     the end thereof the following new subparagraph:
       ``(D) Special rules for certain property.--In the case of 
     any domestic section 38 property which is 3-year property 
     (within the meaning of section 168(e))--
       ``(i) the percentage set forth in clause (ii) of the table 
     contained in paragraph (1)(B) shall be 66 percent,
       ``(ii) the percentage set forth in clause (iii) of such 
     table shall be 33 percent, and
       ``(iii) clauses (iv) and (v) of such table shall not 
     apply.''
       (4)(A) The section heading for section 48 is amended to 
     read as follows:
     ``SEC. 48. OTHER CREDITS.''

       (B) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 is amended by striking the item 
     relating to section 48 and inserting the following:

``Sec. 48. Other credits.''

       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 1994, under rules 
     similar to the rules of section 48(m) of the Internal Revenue 
     Code of 1986 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).

     SEC. 362. CREDIT FOR PURCHASES OF DOMESTIC DURABLE GOODS.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 (relating to nonrefundable personal credits) is 
     amended by inserting after section 25B the following new 
     section:

     ``SEC. 25C. PURCHASES OF DOMESTIC DURABLE GOODS.

       ``(a) General Rule.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year an amount equal to 7 percent of 
     the aggregate amount paid during the taxable year for the 
     purchase of domestic durable goods.
       ``(b) Domestic Durable Goods.--For purposes of this 
     section--
       ``(1) In general.--The term `domestic durable good' means 
     any durable good if--
       ``(A) the property was completed in the United States, and
       ``(B) more than 50 percent of the basis of the property is 
     attributable to value added within the United States.
       ``(2) United states.--The term `United States' includes the 
     Commonwealth of Puerto Rico and the possessions of the United 
     States.
       ``(c) Limitation.--The amount of the credit allowed under 
     subsection (a) for any taxable year shall not exceed 
     $1,000.''
       (b) Conforming Amendment.--The table of sections for such 
     subpart A is amended by inserting after the item relating to 
     section 25B the following new item:

``Sec. 25C. Purchases of domestic durable goods.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1994.

     SEC. 363. CREDIT FOR CERTAIN COSTS INCURRED IN PURCHASING AN 
                   AMERICAN-MADE PASSENGER VEHICLE.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 (relating to nonrefundable personal credits) is 
     amended by inserting after section 25C the following new 
     section:
     ``SEC. 25D. CERTAIN COSTS INCURRED IN PURCHASING AN AMERICAN-
                   MADE PASSENGER VEHICLE.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year an amount equal to the qualified 
     payments made by the taxpayer during such year.
       ``(b) Qualified Payments.--For purposes of this section, 
     the term `qualified payments' means any payment of--
       ``(1) any State or local sales tax imposed on the purchase 
     by the taxpayer of any qualified automobile, and
       [[Page H3978]] ``(2) any interest on any loan which is 
     secured by a qualified automobile and which was incurred by 
     the taxpayer to purchase such automobile.
       ``(c) Qualified Automobile.--For purposes of this section, 
     the term `qualified automobile' means any automobile (as 
     defined in section 4064(b))--
       ``(1) which is purchased after December 31, 1994,
       ``(2) which is domestically produced,
       ``(3) the original use of which begins with the taxpayer, 
     and
       ``(4) substantially all of the use of which is for 
     personal, nonbusiness purposes.

     For purposes of the preceding sentence, an automobile is 
     domestically produced if more than 50 percent of the 
     automobile is produced in the United States and its final 
     assembly occurs in the United States.
       ``(d) Denial of Double Benefit.--No deduction or credit 
     shall be allowed under any other provision of this title for 
     any payment for which a credit is allowable under this 
     section.''
       (b) Clerical Amendment.--The table of sections for such 
     subpart A is amended by inserting after the item relating to 
     section 25C the following new item:

``Sec. 25D. Certain costs incurred in purchasing an American-made 
              passenger vehicle.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after December 31, 1994.

     SEC. 364. PLACEMENT OF MADE IN AMERICA LABELS ON PRODUCTS.

       (a) Requirements for Use of Labels.--No product may bear a 
     label which states or suggests that the product was made in 
     America unless--
       (1) the product has been registered with the Department of 
     Commerce under subsection (b); and
       (2) the Secretary of Commerce has determined that--
       (A) 60 percent of the product was manufactured in the 
     United States; and
       (B) final assembly of the product took place in the United 
     States.
       (b) Registry of American-Made Products.--Not later than 12 
     months after the Secretary has promulgated regulations 
     regarding the registration of products with the Department of 
     Commerce under this section, a person shall register with the 
     Department of Commerce any product on which there is or will 
     be affixed a label which states or suggests that the product 
     was made in America.
       (c) Penalties for Fraudulent Use of Labels.--
       (1) Civil fine.--Any person who, with an intent to defraud 
     or mislead, places on a product a label which states or 
     suggests that the product was ``made in America'' in 
     violation of this section may be assessed a civil penalty by 
     the Secretary of not more than $100,000. The Secretary may 
     issue an order assessing such civil penalty only after notice 
     and an opportunity for an agency hearing on the record. The 
     validity of such order may not be reviewed in an action to 
     collect such civil penalty.
       (2) Injunctive relief.--The Secretary may bring an action 
     to enjoin the violation of, or to compel compliance with, 
     this section, whenever the Secretary believes that such a 
     violation has occurred or is about to occur.
       (d) Regulations.--Not later than 12 months after the date 
     of the enactment of this Act, the Secretary shall promulgate 
     regulations establishing procedures under which a person 
     shall register a product under this section.
       (e) Definitions.--For purposes of this section:
       (1) Label.--The term ``label'' means any written, printed, 
     or graphic matter on, or attached to, a product or any of its 
     containers or wrappers.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce.

                               H.R. 1215

                       Offered By: Mr. Traficant
       Amendment No. 6: Strike subtitles A and B of title III of 
     the bill (other than section 322) and insert the following 
     (and conform the table of contents accordingly):
   Subtitle A--Reduction of Tax on Capital Gain If Proceeds Used To 
                    Purchase Public Debt Obligations

     SEC. 301. REDUCTION OF TAX ON CAPITAL GAIN IF PROCEEDS USED 
                   TO PURCHASE PUBLIC DEBT OBLIGATIONS.

       (a) In General.--Subsection (h) of section 1 (relating to 
     maximum capital gains rate) is amended to read as follows:
       ``(h) Maximum Capital Gains Rate.--
       ``(1) In general.--If a taxpayer has a net capital gain for 
     any taxable year, then the tax imposed by this section shall 
     not exceed the sum of--
       ``(A) a tax computed at the rates and in the same manner as 
     if this subsection had not been enacted on the greater of--
       ``(i) taxable income reduced by the amount of the net 
     capital gain, or
Vol. 141         WASHINGTON, WEDNESDAY, MARCH 29, 1995           No. 58
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                                 Senate


              (Legislative day of Monday, March 27, 1995)