[Congressional Record Volume 144, Number 111 (Friday, August 7, 1998)]
[Extensions of Remarks]
[Pages E1618-E1619]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    INTRODUCTION OF THE CAPITAL GAINS TAX SIMPLIFICATION ACT OF 1998

                                 ______
                                 

                         HON. WILLIAM J. COYNE

                            of pennsylvania

                    in the house of representatives

                        Thursday, August 6, 1998

  Mr. COYNE. Mr. Speaker, on April 1 of this year, several of my 
colleagues and I introduced H.R. 3623, the ``Capital Gains Tax 
Simplification Act of 1998,'' which would simplify the computation of 
capital gains taxes for all individual taxpayers. The bill would also 
provide modest capital gains tax reductions for millions of Americans.
  At the time of introduction, I stated that we would modify the 
legislation if the Joint Committee on Taxation (JCT) determined upon 
reviewing the bill that there would be a revenue loss. Since then, I 
have learned from the JCT that this bill as originally introduced would 
lose revenue. With this concern in mind, I have decided to modify and 
reintroduce this capital gains legislation. The bill would now raise 
$600 million over a ten-year period.
  Based upon revenue considerations, we have modified the Capital Gains 
Tax Simplification Act of 1998 in several areas, none of which would 
affect the basic goal of substantially simplifying the taxation of 
capital

[[Page E1619]]

gains for individual taxpayers. The principal modification would reduce 
the basic deduction from gross income for the net capital gains of 
individual taxpayers to 38 percent, rather than 40 percent in the 
original legislation. Another modification would change the taxation of 
collectibles so that any gain or loss from the sale or exchange of a 
collectible would be treated as a short-term capital gain or loss. 
Consistent with the treatment of capital gains under current law, the 
tax rates that apply to capital gain income for regular tax purposes 
would also apply for alternative minimum tax purposes.
  Under current law, the Schedule D has become very burdensome for 
ordinary taxpayers as they attempt to comply with the current capital 
gains tax law. The IRS estimates that a typical taxpayer with a capital 
gain will spend 5 hours and 20 minutes filling out his or her Schedule 
D. This is two hours more than in 1994. Moreover, the changes of making 
an error in filling out this complicated 54-line form have increased 
due to this additional complexity. In this respect, this bill's simple 
38 percent exclusion for capital gains would be substituted for the 
confusing array of capital gains tax rates under current law, and at no 
cost to the U.S. Treasury.
  Mr. Speaker, should the Ways and Means Committee decide to take up a 
tax bill this year, it is my hope that this legislation would be 
included as part of any ultimate package. We need to make the tax code 
less complex--and less burdensome--for the American taxpayer. The 
Capital Gains Tax Simplification Act of 1998 would go a long way toward 
achieving that goal.
  Several of my colleagues on the Ways and Means Committee, including 
Representatives Rangel, Stark, Matsui, Kennelly, McDermott, Lewis, Neal 
and Becerra, join me in introducing this legislation. I urge my other 
colleagues to join me in cosponsoring this capital gains simplification 
bill.

                          ____________________