Amends the Internal Revenue Code to establish, on a permanent basis, a zero percent tax rate for the net capital gains of individuals and corporations for purposes of the regular and alternative minimum tax. Eliminates the terminating date in the Jobs and Growth Tax Relief Reconciliation Act of 2003 (i.e., December 31, 2008) for provisions that reduce the capital gains tax rate for individuals.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6358 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 6358
To amend the Internal Revenue Code of 1986 to provide for a zero
percent capital gains rate for individuals and corporations.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 29, 2010
Mr. Mack introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for a zero
percent capital gains rate for individuals and corporations.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ZERO PERCENT CAPITAL GAINS RATE FOR INDIVIDUALS AND
CORPORATIONS.
(a) Zero Percent Capital Gains Rate for Individuals.--
(1) In general.--Paragraph (1) of section 1(h) of the
Internal Revenue Code of 1986 is amended by striking
subparagraph (C), by redesignating subparagraphs (D) and (E)
and subparagraphs (C) and (D), respectively, and by amending
subparagraph (B) to read as follows:
``(B) 0 percent of the adjusted net capital gain
(or, if less, taxable income);''.
(2) Alternative minimum tax.--Paragraph (3) of section
55(b) is amended by striking subparagraph (C), by redesignating
subparagraph (D) as subparagraph (C), and by amending
subparagraph (B) to read as follows:
``(B) 0 percent of the adjusted net capital gain
(or, if less, taxable excess), plus''.
(3) Repeal of sunset of reduction in capital gains rates
for individuals.--Section 303 of the Jobs and Growth Tax Relief
Reconciliation Act of 2003 shall not apply to section 301 of
such Act.
(b) Zero Percent Capital Gains Rate for Corporations.--
(1) In general.--Section 1201 of the Internal Revenue Code
of 1986 is amended by redesignating subsection (b) as
subsection (c), and by striking subsection (a) and inserting
the following new subsections:
``(a) General Rule.--If for any taxable year a corporation has a
net capital gain, then, in lieu of the tax imposed by sections 11, 511,
821(a) or (c), and 831(a), there is hereby imposed a tax (if such tax
is less than the tax imposed by such sections) which shall consist of
the sum of--
``(1) a tax computed on the taxable income reduced by the
amount of the net capital gain, at the rates and in the manner
as if this subsection had not been enacted,
``(2) 0 percent of the adjusted net capital gain (or, if
less, taxable income),
``(3) 25 percent of the excess (if any) of--
``(A) the unrecaptured section 1250 gain (or, if
less, the net capital gain (determined without regard
to subsection (b)(2)), over
``(B) the excess (if any) of--
``(i) the sum of the amount on which tax is
determined under paragraph (1) plus the net
capital gain, over
``(ii) taxable income, plus
``(4) 28 percent of the amount of taxable income in excess
of the sum of the amounts on which tax is determined under the
preceding paragraphs of this subsection.
``(b) Definitions and Special Rules.--For purposes of this
section--
``(1) In general.--The terms `adjusted net capital gain'
and `unrecaptured section 1250 gain' shall have the respective
meanings given such terms in section 1(h).
``(2) Dividends taxed at net capital gain.--Except as
otherwise provided in this section, the term `net capital gain'
has the meaning given such term in section 1(h)(11).''.
(2) Alternative minimum tax.--Section 55(b) of such Code is
amended by adding at the end the following new paragraph:
``(4) Maximum rate of tax on net capital gain of
corporations.--The amount determined under paragraph (1)(B)(i)
shall not exceed the sum of--
``(A) the amount determined under such paragraph
computed at the rates and in the same manner as if this
paragraph had not been enacted on the taxable excess
reduced by the net capital gain, plus
``(B) the amount determined under section 1201.''.
(3) Technical amendments.--
(A) Section 1202(a) of such Code is amended by
striking ``50 percent'' and inserting ``100 percent''.
(B) Section 1445(e)(1) of such Code is amended by
striking ``35 percent (or, to the extent provided in
regulations, 15 percent)'' and inserting ``0 percent''.
(C) Section 1445(e)(2) of such Code is amended by
striking ``35 percent'' and inserting ``0 percent''.
(D) Section 7518(g)(6)(A) of such Code is amended
by striking ``15 percent (34 percent in the case of a
corporation)'' and inserting ``0 percent''.
(E) Section 607(h)(6)(A) of the Merchant Marine
Act, 1936, is amended by striking ``15 percent (34
percent in the case of a corporation)'' and inserting
``0 percent''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2010.
(2) Withholding.--The amendments made by subparagraphs (A)
and (B) of subsection (b)(3) shall apply to dispositions and
distributions after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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