To amend the Internal Revenue Code of 1986 to temporarily exclude long-term capital gain from the gross income of individuals.

January 29, 2003

Mr. ISAKSON introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to temporarily exclude long-term capital gain from the gross income of individuals.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Capital Reinvestment Act of 2003'.

SEC. 2. TEMPORARY EXCLUSION OF LONG-TERM CAPITAL GAIN FOR NONCORPORATE TAXPAYERS.

(a) IN GENERAL- Part I of subchapter P of chapter 1 of the Internal Revenue Code of 1986 (relating to treatment of capital gains) is amended by adding at the end the following new section:

`SEC. 1203. TEMPORARY EXCLUSION OF LONG-TERM CAPITAL GAIN.

`(a) IN GENERAL- In the case of a taxpayer other than a corporation, gross income shall not include any gain which is not otherwise treated as ordinary income and which, but for this section, would be long-term capital gain.

`(b) APPLICATION OF SECTION- This section shall apply to taxable years beginning in 2002, 2003, or 2004.

`(c) COORDINATION WITH SECTION 1202- Section 1202 shall not apply to taxable years to which this section applies.'

(b) CLERICAL AMENDMENT- The table of sections for such part I is amended by adding at the end the following new item:

`Sec. 1203. Temporary exclusion of long-term capital gain.'

(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

END