A bill to amend the Internal Revenue Code of 1986 to repeal the 1993 Federal income tax rate increases on trusts established for the benefit of individuals with disabilities

4 Pages·1999·0.16 MB·English

by  United States. Congress. House

Cf'^SLibrary
C2-07-13
7500SecurityBlvd.
Baltimore, Marytend21244
106thcongress H.R.861
1stSession
To amend the Internal Revenue Codeof1986 to repeal the 1993 Federal
incometaxrateincreasesontrustsestablishedforthebenefitofindivid-
ualswithdisabilities.
IN THE HOUSE OF REPRESENTATIVES
February25,1999
Mr.GOODE(forhimself,Mr.PiCKETT,Mr. ScOTT,Mr. SiSlSKY,Mr.GOOD-
LATTE,Mr.Boucher,Mr.Wolf,andMr.Condit)introducedthefol-
lowingbill;wliichwasreferredtotheCommitteeonWaj-sandMeans
A
BILL
To amend the Internal Revenue Code of 1986 to repeal
the 1993 Federal mcome tax rate increases on trusts
establishedforthebenefitofindi\idualswithdisabihties.
1 BeitenactedhytheSenateandHouseofRepresenta-
2 tivesofthe UnitedStatesofAmericainCongressassembled,
3 SECTION1.SHORTTITLE.
4 ThisActmaybecitedasthe"PersonsWithDisabil-
5 itiesTrustsTaxRateRestorationAct".
—
2
1 SEC.2.REPEALOF1993RATEINCREASESONTRUSTSFOR
2 INDIVroUALS WHO ARE DISABLED OR FOR
3 COLLEGEEDUCATIONS.
—
4 (a)InGeneral. Section 1(e) oftheInternalReve-
5 nueCodeof1986 (relatingtotaximposedonestatesand
6 trusts)isamendedtoreadasfollows:
—
7 "(e)EstatesandTrusts.
—
8 "(1)InGENERAL. Exceptasprovidedinpara-
9 graph (2),thereisherebyimposedonthetaxablein-
10 comeof
11 "(A) everyestate,and
12 "(B)everytrust,
13 taxableunderthissubsectionataxdeterminedinac-
14 cordaneewiththefollowingtable:
"Iftaxableincomeis: Thetaxis:
Notover$1,500 15%oftaxableincome.
Over$1,500butnotover$3,500.. $225, plus 28% ofthe excessover
$1,500.
Over$3,500butnotover$5,500.. $785, plus 31% ofthe excess over
$3,500.
Over$5,500butnotover$7,500.. $1,405,plus36% oftheexcessover
$5,500.
Over$7,500 $2,125,plus39.6%.oftheexcessover
$7,500.
—
15 "(2) Specialruleforcertaintrusts.
—
16 "(A) In GENT:ral. There is hereby im-
17 posedonthetaxableincomeofaneligibletrust
18 taxable under this subsection a tax determined
19 inaccordancewiththefollowingtable:
"Iftaxableincomeis: Thetaxis:
Notover$3,300 15%oftaxableincome.
m
>HR861
Ci'lSLibrary
C2-07-i3
7500SecurityBlvd.
Bsltimors, Maryterci21244
"Iftaxableincomeis: Thetaxis:
Over$3,300butnotover$9,900.. $495, plus 28% ofthe excess over
$3,300.
Over$9,900 $2,343,plus31%oftheexcessover
$9,900.
—
1 "(B) Eligible trust. For purposes of
2 subparagraph (A), the term 'ehgible trust'
3 means a trust which is estabhshed exclusively
4 for the purpose of providing reasonable
5 amounts forthe support and maintenance of 1
6 or more beneficiaries each ofwhom is an indi-
7 vidual who is mentally iU or has a disability
8 (within the meaning of section 3(2) of the
9 Americans With Disabilities Act of 1990 (42
10 U.S.C. 12102(2)) atthetimethetrustisestab-
11 lished. A trust shall not fail to meet the re-
12 quirements of this subparagraph merely be-
13 causethe corpus ofthetrustmayreverttothe
14 grantor or a member of the grantor's family
15 uponthedeathofthebeneficiar5^"
—
16 (b) Effectr^ Date. The amendment made by
17 this section shall apply to taxable years beginning after
18 thedateoftheenactmentofthisAct.
O
m
•HR861
CHSLIBRflRV