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Code · BILL · 113th Congress · H.R. 1 (Introduced in House) — To amend the Internal Revenue Code of 1986 to provide for comprehensive tax reform. · Sec. 1003

Sec. 1003. Conforming amendments related to simplification of individual income tax rates

2,936 words·~13 min read·/bill/113/hr/1/ih/section-1003

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Section 25B(b)(3)(B) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting and inserting calendar year 2005 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting . calendar year 2005 for calendar year 2012 in clause
(ii)thereof Subclause
(II)of section 36B(b)(3)(A)(ii) is amended by striking consumer price index and inserting C-CPI-U (as defined in section 1(c)) . Section 41(e)(5)(C) is amended to read as follows: The cost-of-living adjustment for any calendar year is the cost-of-living adjustment for such calendar year determined under section 1(c)(2)(A), by substituting calendar year 1987 for calendar year 2012 in clause
(ii)thereof. If the base period of any taxpayer does not end in 1983 or 1984, clause
(i)shall be applied by substituting the calendar year in which such base period ends for 1987. . Section 125(i)(2) is amended— by striking section 1(f)(3) for the calendar year in which the taxable year begins by substituting in subparagraph
(B)and inserting calendar year 2012 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for the calendar year in which the taxable year begins , and by striking $50 both places it appears in the last sentence and inserting $100 . Section 137(f) is amended— by striking section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting in paragraph
(2)and inserting calendar year 2001 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting , and calendar year 2001 for calendar year 2012 in clause
(ii)thereof in the last sentence thereof— by striking $10 the first place it appears and inserting $100 , and by striking nearest multiple of $10 and inserting next lowest multiple of $100 . Section 162(o)(3) is amended by inserting as in effect before enactment of the after Tax Reform Act of 2014 section 1(f)(5) . Section 220(g)(2) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins by substituting and inserting calendar year 1997 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting . calendar year 1997 for calendar year 2012 in clause
(ii)thereof Section 223(g)(1) is amended by striking all that follows subparagraph
(A)and inserting the following: the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined— by substituting for calendar year 2012 in clause
(ii)thereof— except as provided in clause (ii), calendar year 1997 , and in the case of each dollar amount in subsection (c)(2)(A), calendar year 2003 , and by substituting March 31 for August 31 in paragraphs (5)(B) and (6)(B) of section 1(c). The Secretary shall publish the dollar amounts as adjusted under this subsection for taxable years beginning in any calendar year no later than June 1 of the preceding calendar year. . Section 430(c)(7)(D)(vii)(II) is amended by striking section 1(f)(3) for the calendar year, determined by substituting and inserting calendar year 2009 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for the calendar year, determined by substituting . calendar year 2009 for calendar year 2012 in clause
(ii)thereof Section 512(d)(2)(B) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins, by substituting and inserting calendar year 1994 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting . calendar year 1994 for calendar year 2012 in clause
(ii)thereof Section 513(h)(2)(C)(ii) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins by substituting and inserting calendar year 1987 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting . calendar year 1987 for calendar year 2012 in clause
(ii)thereof Section 877A(a)(3)(B)(i)(II) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins, by substituting and inserting calendar year 2007 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting . calendar year 2007 for calendar year 2012 in clause
(ii)thereof Section 911(b)(2)(D)(ii)(II) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting and inserting 2004 for 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting . calendar year 2004 for calendar year 2012 in clause
(ii)thereof Section 1274A(d)(2) is amended to read as follows: In the case of any debt instrument arising out of a sale or exchange during any calendar year after 2014, each adjusted dollar amount shall be increased by an amount equal to— such adjusted dollar amount, multiplied by the cost-of-living adjustment determined under section 1(c)(2)(A) for such calendar year, determined by substituting calendar year 2013 for calendar year 2012 in clause
(ii)thereof. For purposes of this paragraph, the term adjusted dollar amount means the dollar amounts in subsections
(b)and (c), in each case as in effect for calendar year 2014. Any increase under subparagraph
(A)shall be rounded to the nearest multiple of $100. . Section 2010(c)(3)(B)(ii) is amended by striking section 1(f)(3) for such calendar year by substituting and inserting calendar year 2010 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for such calendar year, determined by substituting . calendar year 2010 for calendar year 2012 in clause
(ii)thereof Section 2032A(a)(3)(B) is amended by striking section 1(f)(3) for such calendar year by substituting and inserting calendar year 1997 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for such calendar year, determined by substituting . calendar year 1997 for calendar year 2012 in clause
(ii)thereof Section 2503(b)(2)(B) is amended by striking section 1(f)(3) for such calendar year by substituting and inserting calendar year 1997 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for the calendar year, determined by substituting . calendar year 1997 for calendar year 2012 in clause
(ii)thereof Section 4161(b)(2)(C)(i)(II) is amended by striking section 1(f)(3) for such calendar year, determined by substituting and inserting 2004 for 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for such calendar year, determined by substituting . calendar year 2004 for calendar year 2012 in clause
(ii)thereof Section 4261(e)(4)(A)(ii) is amended by striking section 1(f)(3) for such calendar year by substituting the year before the last nonindexed year for and inserting calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for such calendar year, determined by substituting the year before the last nonindexed year for . calendar year 2012 in clause
(ii)thereof Section 4980I(b)(3)(C)(v)(II) is amended by striking section 1(f)(3) and inserting section 1(c)(2)(A) , by striking subparagraph
(B)and inserting clause
(ii), and by striking 1992 and inserting 2012 . Section 5000A(c)(3)(D)(ii) is amended— by striking section 1(f)(3) and inserting section 1(c)(2)(A) , by striking subparagraph
(B)and inserting clause
(ii), and by striking 1992 and inserting 2012 . Section 6039F(d) is amended by striking section 1(f)(3), except that subparagraph
(B)thereof and inserting section 1(c)(2)(A), except that clause
(ii)thereof . Section 6323(i)(4)(B) is amended by striking section 1(f)(3) for the calendar year, determined by substituting and inserting calendar year 1996 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for the calendar year, determined by substituting . calendar year 1996 for calendar year 2012 in clause
(ii)thereof Section 6334(g)(1)(B) is amended by striking section 1(f)(3) for such calendar year, by substituting and inserting calendar year 1998 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for such calendar year, determined by substituting . calendar year 1999 for calendar year 2012 in clause
(ii)thereof Section 6721(f)(1) is amended— by striking section 1(f)(3) and inserting section 1(c)(2)(A) , by striking subparagraph
(B)and inserting clause
(ii), and by striking 1992 and inserting 2012 . Section 6722(f)(1) is amended— by striking section 1(f)(3) and inserting section 1(c)(2)(A) , by striking subparagraph
(B)and inserting clause
(ii), and by striking 1992 and inserting 2012 . Section 7430(c)(1) is amended by striking section 1(f)(3) for such calendar year, by substituting in the flush text at the end and inserting calendar year 1995 for calendar year 1992 in subparagraph
(B)thereof section 1(c)(2)(A) for such calendar year, determined by substituting . calendar year 1995 for calendar year 2012 in clause
(ii)thereof Section 7872(g)(5) is amended to read as follows: In the case of any loan made during any calendar year after 2014 to which paragraph
(1)applies, the adjusted dollar amount shall be increased by an amount equal to— such adjusted dollar amount, multiplied by the cost-of-living adjustment determined under section 1(c)(2)(A) for such calendar year, determined by substituting calendar year 2013 for calendar year 2012 in clause
(ii)thereof. For purposes of this paragraph, the term adjusted dollar amount means the dollar amount in paragraph
(2)as in effect for calendar year 2014. Any increase under subparagraph
(A)shall be rounded to the nearest multiple of $100. . Section 163(d)(4)(B) is amended by striking section 1(h)(11)(B) and inserting section 169(e) . Section 172(d)(2)(B) is amended by inserting the deduction allowable under section 169 and before the exclusion . Section 301(f)(4) is amended by striking section 1(h)(11) and inserting section 169(e) . Section 306(a)(1)(D) is amended by striking section 1(h)(11) and inserting section 169(e) . The last sentence of section 453A(c)(3) is amended by striking capital gain and all that follows and inserting capital gain, the deduction under section 169 shall be taken into account. . Sections 531 and 541 are each amended by striking 20 percent and inserting 21 percent . Section 584(c) is amended by striking and to which section 1(h)(11) applies in the last sentence and inserting which is qualified dividend income (as defined in section 169(e)) in the hands of such common trust fund . Section 641(c)(2)(C) (prior to redesignation by title II) is amended by adding at the end the following new clause: The deduction allowed by section 169. . The first sentence of section 642(c)(4) is amended by striking consists of and all that follows and inserting consists of long-term capital gain or gain described in section 1202(a), proper adjustments shall be made for any deduction allowable to the trust or estate under section 169 and for any exclusion allowable under section 1202. . The last sentence of section 643(a)(3) is amended to read as follows: The deduction under section 169 and the exclusion under section 1202 shall not be taken into account. . Section 691(c)(4) is amended by striking 1(h) and inserting 169 . Section 702(a)(5) is amended by striking section 1(h)(11) and inserting section 169 . Section 854 is amended— by striking section 1(h)(11) (relating to maximum rate of tax on dividends) in subsection
(a)and inserting section 169 (relating to adjusted net capital gain) , by striking in the heading of subsection (b)(1)(B) and inserting Maximum rate under section 1(h) , and Determination of adjusted net capital gain by striking section 1(h)(11)(B) in subsection (b)(4) and inserting section 169(e) . Section 857(c)(2) is amended— by striking section 1(h)(11)(B) in subparagraph
(D)and inserting section 169(e) , and by striking in the heading and inserting Section 1(h)(11) . Section 169(e) Section 904(b) is amended— by amending paragraph
(2)to read as follows: For purposes of this section, taxable income from sources outside the United States shall include gain from the sale or exchange of capital assets (including gain so treated under section 1231) only to the extent of the lesser of— capital gain net income from sources without the United States, or capital gain net income. , and by striking paragraph (3). Section 1260(a) is amended by striking long-term capital gain the first place such term appears and all that follows and inserting long-term capital gain, such gain shall be treated as ordinary income to the extent such gain exceeds the net underlying long-term capital gain. . Section 1411(c)(1)(B) is amended by inserting (other than section 169) after this subtitle . Section 4985(a)(1) is amended by striking the rate of tax specified in section 1(h)(1)(C) and inserting 21 percent . Section 7518(g)(6)(A) is amended by striking all that follows clause
(i)and inserting the following: by increasing the tax imposed by chapter 1 by the product of the amount of such withdrawal, multiplied by— in the case of a taxpayer other than a corporation, 60 percent of the highest rate of tax specified in section 1, and in the case of a corporation, the highest rate of tax specified in section 11. . Section 53511(f) of title 46, United States Code, is amended by— by amending paragraph (1)(B) to read as follows: increasing the tax imposed by chapter 1 of such Code by the product of the amount of such withdrawal, multiplied by— in the case of a taxpayer other than a corporation, the highest rate of tax specified in section 1 (60 percent of such highest rate in the case of so much of such withdrawal as is made from the capital gain account), and in the case of a corporation, the highest rate of tax specified in section 11. , and by striking paragraph
(2)and by redesignating paragraphs
(3)and
(4)as paragraphs
(2)and (3), respectively. The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 168 the following new item: Sec. 169. Adjusted net capital gain. . Section 25B(b)(2) is amended by striking In the case of— and all that follows through any taxpayer not described in paragraph
(1)or subparagraph (A), and inserting In the case of any taxpayer not described in paragraph (1), . Section 36B(b)(3)(B)(ii)(I)(aa) is amended to read as follows: who is described in section 1(b)(1)(B) and who does not have any dependents for the taxable year, . Section 486B(b)(1) is amended— by striking maximum rate in effect and inserting highest rate specified , and by striking section 1(e) and inserting section 1 . Section 511(b)(1) is amended to read as follows: There is hereby imposed for each taxable year on the unrelated business taxable income of every trust described in paragraph
(2)a tax computed as provided in section 1. In making such computation for purposes of this section, the terms taxable income and modified adjusted gross income as used in section 1 shall both be read as unrelated business taxable income as defined in section 512. . Section 641(a) is amended by striking section 1(e) shall apply to the taxable income and inserting section 1 shall apply to the income . Section 641(c)(2)(A) is amended to read as follows: The dollar amount in effect under section 1(b)(2)(C) shall be treated as being zero. . Section 646(b) is amended to read as follows: Except as provided in subsection (f)(1)(B)(ii), there is hereby imposed on the taxable income of an electing Settlement Trust a tax at the rate specified in section 1(a)(1). Such tax shall be in lieu of the income tax otherwise imposed by this chapter on such income. . Section 685(c) is amended by striking Section 1(e) and inserting Section 1 . Section 1398(c) is amended by striking paragraphs
(1)and (2), by redesignating paragraph
(3)as paragraph (2), and by inserting before paragraph
(2)as so redesignated the following new paragraph: Except as otherwise provided in this section or part I of subchapter A, the taxable income and modified adjusted gross income of the estate shall be computed in the same manner as for an individual. The tax shall be computed under section 1 and shall be paid by the trustee. . Section 3402(p)(1)(B) is amended by striking any percentage applicable to any of the 3 lowest income brackets in the table under section 1(c), and inserting 10 percent, 25 percent, 35 percent, . Section 3402(q)(1) is amended by striking the third lowest rate of tax applicable under section 1(c) and inserting the highest rate of tax specified in section 1 . Section 3402(r)(3) is amended by striking the amount of tax which would be imposed by section 1(c) (determined without regard to any rate of tax in excess of the fourth lowest rate of tax applicable under section 1(c)) on an amount of taxable income equal to and inserting an amount equal to the product of the highest rate of tax specified in section 1 multiplied by . Section 3406(a)(1) is amended by striking the fourth lowest rate of tax applicable under section 1(c) and inserting the highest rate of tax specified in section 1 . Section 6103(e)(1)(A)(iii) is amended by striking section 1(g) and inserting section 1(d) . If an employer elects under Treasury Regulation section 31.3402(g)–1 to determine the amount to be deducted and withheld from any supplemental wage payment by using a flat percentage rate, the rate to be used in determining such amount shall not be less than 35 percent. The American Jobs Creation Act of 2004 is amended by striking section 904. Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2014. The provisions of, and amendments made by, subsection
(d)shall apply to payments made after December 31, 2014.
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