[Congressional Record Volume 144, Number 71 (Thursday, June 4, 1998)]
[House]
[Page H4134]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 MAKING IN ORDER AT ANY TIME CONSIDERATION OF H.R. 3989, USER FEE AND 
                        TAX INCREASE ACT OF 1998

  Mr. SOLOMON. Mr. Speaker, after consultation with the minority, I ask 
unanimous consent that it be in order at any time to consider the bill 
(H.R. 3989) to provide for the enactment of user fees proposed by the 
President in his budget submission under section 1105(a) of title 31, 
United States Code, for fiscal year 1999; that the bill be considered 
as read for amendment; that the amendment I have placed at the desk be 
considered as adopted; and that the previous question be considered as 
ordered on the bill, as amended, to final passage without intervening 
motion except: (1) one hour of debate on the bill, as amended, equally 
divided and controlled by the gentleman from New York (Mr. Solomon) and 
the minority leader or his designee; and (2) one motion to recommit, 
with or without instructions.
  The SPEAKER pro tempore. The Clerk will report the amendment.
  The Clerk read as follows:
       At the end of the bill add the following title:

                        TITLE IV--TAX INCREASES

     SEC. 401. TAX INCREASES.

       It is the sense of the House of Representatives that the 
     following tax increases proposed by the President should be 
     enacted as soon as possible:
       (1) Accounting provisions.--
       (A) Repeal lower of cost or market inventory accounting 
     method.
       (B) Repeal nonaccrual experience method of accounting and 
     make certain trade receivables ineligible for mark-to-market 
     treatment.
       (2) Financial products and institutions.--
       (A) Defer interest deduction on certain convertible debt.
       (B) Extend pro rata disallowance of tax-exempt interest 
     expense that applies to banks to all financial 
     intermediaries.
       (3) Corporate tax provisions.--
       (A) Eliminate dividends received deduction for certain 
     preferred stock.
       (B) Repeal tax-free conversion of large C corporations into 
     S corporations.
       (C) Restrict special net operating loss carryback rules for 
     specified liability losses.
       (D) Clarify the meaning of ``subject to'' liabilities under 
     section 357(c).
       (4) Insurance provisions.--
       (A) Increase the proration percentage for property and 
     casualty insurance companies.
       (B) Capitalize net premiums for credit life insurance 
     contracts.
       (C) Modify corporate-owned life insurance rules.
       (D) Modify reserve rules for annuity contracts.
       (E) Tax certain exchanges of insurance contracts and 
     reallocations of assets within variable insurance contracts.
       (F) Modify computation of ``investment in the contract'' 
     for mortality and expense charges on certain insurance 
     contracts.
       (5) Estate and gift tax provisions.--
       (A) Eliminate nonbusiness valuation discounts.
       (B) Modify treatment of gifts of ``present interests'' in a 
     trust (repeal ``Crummey'' case rule).
       (C) Eliminate gift tax exemption for personal residence 
     trusts.
       (D) Include qualified terminable interest property trust 
     assets in surviving spouse's estate.
       (6) Foreign tax provisions.--
       (A) Replace sales source rules with activity-based rule.
       (B) Modify rules relating to foreign oil and gas extraction 
     income.
       (C) Apply ``80/20'' company rules on a group-wide basis.
       (D) Prescribe regulations regarding foreign built-in 
     losses.
       (E) Prescribe regulations regarding use of hybrids.
       (F) Modify foreign office material participation exception 
     applicable to certain inventory sales.
       (G) Modify controlled foreign corporation exception from 
     United States tax on transportation income.
       (7) Administrative provisions.--
       (A) Increase penalties for failure to file correct 
     information returns.
       (B) Modify definition of substantial understatement penalty 
     for large corporations.
       (C) Repeal exemption for withholding on gambling.
       (D) Modify deposit requirement for FUTA.
       (E) Clarify and expand math error procedures.
       (8) Real estate investment company provisions.--
       (A) Freeze grandfathered status of stapled or paired-share 
     REITs.
       (B) Restrict impermissible businesses indirectly conducted 
     by REITs.
       (C) Modify treatment of closely held REITs.
       (9) Earned income tax compliance provisions.--
       (A) Simplify foster child definition under the earned 
     income credit.
       (B) Modify definition of qualifying child for purposes of 
     the earned income credit where more than one taxpayer 
     satisfies the requirements with respect to the same child.
       (10) Other revenue-increase provisions.--
       (A) Repeal percentage depletion for certain nonfuel 
     minerals mined on Federal and formerly Federal lands.
       (B) Modify depreciation method for tax-exempt use property.
       (C) Impose excise tax on purchase of structured 
     settlements.
       (D) Reinstate Oil Spill Liability Trust Fund excise tax and 
     increase Trust Fund ceiling to $5,000,000,000 (through 
     September 30, 2008).
       (11) Reinstate hazardous substance superfund excise tax and 
     environmental income tax.--
       (A) Reinstate Superfund corporate environmental income tax.
       (B) Reinstate Superfund excise taxes (through September 30, 
     2008).

  Mr. SOLOMON (during the reading). Mr. Speaker, I ask unanimous 
consent that the amendment be considered as read and printed in the 
Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  The SPEAKER pro tempore. Is there objection to the original request 
of the gentleman from New York?
  There was no objection.




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