[House Report 105-580]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-580
_______________________________________________________________________


 
PROVIDING FOR CONSIDERATION OF H.R. 3097, THE TAX CODE TERMINATION ACT 
                                OF 1998

                                _______
                                

   June 16, 1998.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


Mr. Hastings of Washington, from the Committee on Rules, submitted the 
                               following

                              R E P O R T

                       [To accompany H. Res. 472]

    The Committee on Rules, having had under consideration 
House Resolution 472, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

               brief summary of provisions of resolution

    The resolution provides for consideration in the House of 
H.R. 3097, the ``Tax Code Termination Act of 1998'', under a 
closed rule. The rule provides that the amendment in the nature 
of a substitute printed in this report be considered as 
adopted.
    The rule further provides two hours of debate equally 
divided and controlled by the chairman and ranking minority 
member of the Committee on Ways and Means. Finally, the rule 
provides one motion to recommit with or without instructions.

 amendment in the nature of a substitute considered as adopted by the 
                                  rule

    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Tax Code Termination Act''.

SEC. 2. TERMINATION OF INTERNAL REVENUE CODE OF 1986.

  (a) In General.--No tax shall be imposed by the Internal 
Revenue Code of 1986--
          (1) for any taxable year beginning after December 31, 
        2002, and
          (2) in the case of any tax not imposed on the basis 
        of a taxable year, on any taxable event or for any 
        period after December 31, 2002.
  (b) Exception.--Subsection (a) shall not apply to taxes 
imposed by--
          (1) chapter 2 of such Code (relating to tax on self-
        employment income),
          (2) chapter 21 of such Code (relating to Federal 
        Insurance Contributions Act), and
          (3) chapter 22 of such Code (relating to Railroad 
        Retirement Tax Act).

SEC. 3. NEW FEDERAL TAX SYSTEM.

  (a) Structure.--The Congress hereby declares that any new 
Federal tax system should be a simple and fair system that--
          (1) applies a low rate to all Americans,
          (2) provides tax relief for working Americans,
          (3) protects the rights of taxpayers and reduces tax 
        collection abuses,
          (4) eliminates the bias against savings and 
        investment,
          (5) promotes economic growth and job creation, and
          (6) does not penalize marriage or families.
  (b) Timing of Implementation.--In order to ensure an easy 
transition and effective implementation, the Congress hereby 
declares that any new Federal tax system should be approved by 
Congress in its final form no later than July 4, 2002.

                                
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