107th CONGRESS
1st Session
H. R. 2999
To amend the Internal Revenue Code of 1986 to modify the highest
marginal income tax rates and to increase the estate tax deduction for
family-owned business interests, to repeal certain sections of the Economic
Growth and Tax Relief Reconciliation Act of 2001 related to personal exemptions,
itemized deductions, and the estate tax, to establish a legislative task force
to determine when and whether certain critical national priorities have been
accomplished, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
October 2, 2001
Ms. SCHAKOWSKY (for herself, Ms. LEE, Mr. SANDERS, Mr. LAFALCE, Ms. WOOLSEY,
Mr. WAXMAN, Ms. SOLIS, Mr. DAVIS of Illinois, Mr. JACKSON of Illinois, Mr.
OWENS, Mr. HINCHEY, Mr. RUSH, Mr. KUCINICH, and Mrs. JONES of Ohio) introduced
the following bill; which was referred to the Committee on Ways and Means, and
in addition to the Committee on Rules, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to modify the highest
marginal income tax rates and to increase the estate tax deduction for
family-owned business interests, to repeal certain sections of the Economic
Growth and Tax Relief Reconciliation Act of 2001 related to personal exemptions,
itemized deductions, and the estate tax, to establish a legislative task force
to determine when and whether certain critical national priorities have been
accomplished, and for other purposes.
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 `First Things First Act'.
SEC. 2. PURPOSE.
The purpose of this Act is to delay the implementation of certain
amendments to the Internal Revenue Code of 1986 until a legislative task force
has certified the achievement of each of the following critical national
priorities:
(1) The provision of aid and relief to persons physically or
economically injured as a result of the terrorist acts against the United
States that occurred on September 11, 2001.
(2) The security of the Social Security and Medicare trust funds.
(3) The provision of a comprehensive prescription drug benefit to
Medicare beneficiaries.
(4) The provision of Federal funding for a major school modernization
effort and the hiring of 100,000 teachers.
(5) A significant reduction since 2001 in the number of United States
citizens who face worst case housing needs.
SEC. 3. MODIFICATION OF THE HIGHEST MARGINAL INCOME TAX RATES.
(a) IN GENERAL- Paragraph (2) of section 1(i) of the Internal Revenue Code
of 1986 (relating to reductions in rates after June 30, 2001) is amended by
striking the table and inserting the following:
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`In the case of taxable years beginning during calendar year: The corresponding percentages shall be substituted for the following percentages:
28% 31% 36% 39.6%
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2001 27.5% 30.5% 35.5% 39.1%
2002 and 2003 27.0% 30.5% 35.5% 39.6%
2004 and 2005 26.0% 30.5% 35.5% 39.6%
2006 and thereafter 25.0% 30.5% 35.5% 39.6%'.
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(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to
taxable years beginning after December 31, 2000.
SEC. 4. REPEAL OF PHASEOUT OF OVERALL LIMITATION ON ITEMIZED DEDUCTIONS AND
OF TERMINATION OF PHASEOUT OF PERSONAL EXEMPTIONS.
Sections 102 and 103 of the Economic Growth and Tax Relief Reconciliation
Act of 2001 (and the amendments made by such sections) are hereby repealed,
and the Internal Revenue Code of 1986 shall be applied and administered as if
such sections (and amendments) had never been enacted.
SEC. 5. REPEAL OF THE TERMINATION OF THE ESTATE AND GENERATION-SKIPPING
TRANSFER TAXES AND STEP-UP IN BASIS AT DEATH, AND RELATED REPEALS.
Subtitles A, B, C, D, and E of title V of the Economic Growth and Tax
Relief Reconciliation Act of 2001 (and the amendments made by such subtitles)
are hereby repealed, and the Internal Revenue Code of 1986 shall be applied
and administered as if such subtitles (and amendments) had never been
enacted.
SEC. 6. INCREASE IN THE ESTATE TAX DEDUCTION FOR FAMILY-OWNED BUSINESS
INTEREST.
(a) IN GENERAL- Paragraph (2) of section 2057(a) of the Internal Revenue
Code of 1986 (relating to maximum deduction) is amended by striking `$675,000'
and inserting `$4,000,000'.
(b) CONFORMING AMENDMENTS- Subparagraph (B) of section 2057(a)(3) of the
Internal Revenue Code of 1986 (relating to coordination with unified credit)
is amended by striking `$675,000' each place it appears in the text and
heading and inserting `$4,000,000'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
estates of decedents dying after the date of the enactment of this Act.
SEC. 7. NATIONAL PRIORITIES ASSESSMENT TASK FORCE.
(a) ESTABLISHMENT- There is established in the legislative branch a task
force to be known as the `National Priorities Assessment Task Force' (in this
section referred to as the `Task Force').
(b) DUTIES- The Task Force shall determine when and whether Congress has
achieved each of the following:
(1) The provision of aid and relief to persons physically or
economically injured as a result of the terrorist acts against the United
States that occurred on September 11, 2001.
(2) The security of the Social Security and Medicare trust funds.
(3) The provision of a comprehensive prescription drug benefit to
Medicare beneficiaries.
(4) The provision of Federal funding for a major school modernization
effort and the hiring of 100,000 teachers.
(5) A significant reduction since 2001 in the number of United States
citizens who face worst case housing needs.
(c) MEMBERSHIP- The Task Force shall be composed of 16 members as
follows:
(1) The chairperson and the ranking minority member of the Committee on
the Budget of the House of Representatives.
(2) The chairperson and the ranking minority member of the Committee on
Energy and Commerce of the House of Representatives.
(3) The chairperson and the ranking minority member of the Committee on
Education and the Workforce of the House of Representatives.
(4) The chairperson and the ranking minority member of the Committee on
Ways and Means of the House of Representatives.
(5) The chairperson and the ranking minority member of the Committee on
the Budget of the Senate.
(6) The chairperson and the ranking minority member of the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(7) The chairperson and the ranking minority member of the Committee on
Health, Education, Labor and Pensions of the Senate.
(8) The chairperson and the ranking minority member of the Committee on
Finance of the Senate.
(1) IN GENERAL- The Task Force shall transmit a final report to Congress
not later than 30 days after the date on which the Task Force makes the
determinations described in subsection (b). The final report shall contain a
detailed statement of the findings and conclusions on which the
determinations of the Task Force under subsection (b) are based.
(2) REQUIRED DETERMINATIONS- The Task Force shall not transmit a final
report under paragraph (1) until the Task Force has made the determinations
described in subsection (b).
(e) INTERIM REPORTS- The Task Force may submit to Congress interim reports
as the Task Force considers appropriate.
(1) PAY- Members of the Task Force shall serve without pay.
(2) QUORUM- 9 members of the Task Force shall constitute a quorum.
(3) CHAIRPERSON; VICE CHAIRPERSON- The Chairperson and Vice Chairperson
of the Task Force shall be elected by the members.
(4) MEETINGS- The Task Force shall meet at the call of the Chairperson
or a majority of its members.
(g) POWERS OF THE TASK FORCE-
(1) HEARINGS- The Task Force may, for the purpose of carrying out this
section, hold hearings, sit and act at times and places, take testimony, and
receive evidence as the Task Force considers appropriate.
(2) OBTAINING OFFICIAL DATA- The Task Force may secure directly from any
department or agency of the United States information necessary to enable it
to carry out this section. Upon request of the Chairperson of the Task
Force, the head of that department or agency shall furnish that information
to the Task Force.
(1) IN GENERAL- No funds may be provided to the Task Force.
(2) AVAILABILITY OF COMMITTEE FUNDS- Notwithstanding paragraph (1), any
committee described in subsection (c) may make funds available for the
activities of a member of the Task Force to carry out this section if such
member of the Task Force is also a member of such committee.
(i) TERMINATION- The Task Force shall terminate 30 days after transmitting
its final report under subsection (d).
END