S.Amdt. 2660

1. Adds SEC. 405. MODIFICATION OF TAX RATES ON CAPITAL GAINS AND DIVIDENDS FOR INDIVIDUALS WITH $1,000,000 OR MORE OF TAXABLE INCOME at the end of title IV

   Adds a section

   In S. 2020 · Placed on Calendar Senate

   (d) Effective Date.--The amendments made by this section shall apply to amounts paid or accrued during the period beginning after December 31, 2006, and before January 1, 2008, and properly allocable to such period, with respect to mortgage insurance contracts issued after December 31, 2006.

   Inserted: SEC. 405. MODIFICATION OF TAX RATES ON CAPITAL GAINS AND DIVIDENDS FOR INDIVIDUALS WITH $1,000,000 OR MORE OF TAXABLE INCOME.

   Inserted: (a) Modification of Tax Rates on Capital Gains and Dividends for Individuals With $1,000,000 or More of Taxable Income.--

   Inserted: (1) In general.--Section 1(h) is amended by adding at the end the following new paragraph:

   Inserted: "(12) Modified rates for individuals with $1,000,000 or more of taxable income.--If a taxpayer has taxable income of $1,000,000 or more for any taxable year--

   Inserted: "(A) paragraph (11) (relating to dividends taxed as capital gain) shall not apply to any qualified dividend income of the taxpayer for the taxable year, and

   Inserted: "(B) paragraph (1)(C) shall be applied by substituting '20 percent' for '15 percent' with respect to the adjusted net capital gain of the taxpayer for the taxable year, determined by only taking into account gain or loss properly allocable to the portion of the taxable year after December 31, 2005."

   Inserted: (2) Application to minimum tax.--Section 55(b)(3) is amended by adding at the end the following new sentence: "In the case of a taxpayer with alternative minimum taxable income of $1,000,000 or more for any taxable year, the rules of section 1(h)(12) shall apply for purposes of this paragraph."

   Inserted: (3) Effective dates.--

   Inserted: (A) Capital gains.--Section 1(h)(12)(B) of the Internal Revenue Code of 1986 (as added by paragraph (1)) shall apply to taxable years beginning after December 31, 2005.

   Inserted: (B) Dividend rates.--Section 1(h)(12)(A) of such Code (as added by paragraph (1)) shall apply to dividends received after December 31, 2005.

   Inserted: (4) Application of jgtrra sunset.--The amendment made by this subsection shall be subject to section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 to the same extent and in the same manner as the provision of such Act to which such amendment relates.

   Inserted: (b) Dedication of Resulting Revenues.--

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   Inserted: (1) No child left behind trust fund.--Subchapter A of chapter 98 (relating to trust fund code) is amended by adding at the end the following new section:

   Inserted: "SEC. 9511. NO CHILD LEFT BEHIND TRUST FUND.

   Inserted: "(a) Creation of Trust Fund.--There is established in the Treasury of the United States a trust fund to be known as the 'No Child Left Behind Trust Fund', consisting of any amount appropriated or credited to the Trust Fund as provided in this section or section 9602(b).

   Inserted: "(b) Transfers to Trust Fund.--There are hereby appropriated to the No Child Left Behind Trust Fund the following amounts equivalent to the increased revenues received in the Treasury as the result of the amendment made by section 405(a) of the Tax Relief Act of 2005:

   Inserted: "(1) In the case of fiscal year 2006, $4,085,000,000.

   Inserted: "(2) In the case of fiscal year 2007, $4,543,000,000.

   Inserted: "(3) In the case of fiscal year 2008, $4,725,000,000.

   Inserted: "(c) Expenditures From Trust Fund.--Amounts in the No Child Left Behind Trust Fund shall be available for fiscal years beginning after 2005, as provided by appropriation Acts, to carry out programs under the Elementary and Secondary Education Act of 1965 in accordance with the provisions of, and amendments made by, the No Child Left Behind Act of 2001.".

   Inserted: (2) Military restoration trust fund.--Subchapter A of chapter 98 (relating to trust fund code), as amended by paragraph (1), is amended by adding at the end the following new section:

   Inserted: "SEC. 9512. MILITARY RESTORATION TRUST FUND.

   Inserted: "(a) Creation of Trust Fund.--There is established in the Treasury of the United States a trust fund to be known as the 'Military Restoration Trust Fund', consisting of any amount appropriated or credited to the Trust Fund as provided in this section or section 9602(b).

   Inserted: "(b) Transfers to Trust Fund.--There are hereby appropriated to the Military Restoration Trust Fund the following amounts equivalent to the increased revenues received in the Treasury as the result of the amendment made by section 405(a) of the Tax Relief Act of 2005:

   Inserted: "(1) In the case of fiscal year 2006, $4,085,000,000.

   Inserted: "(2) In the case of fiscal year 2007, $4,543,000,000.

   Inserted: "(3) In the case of fiscal year 2008, $4,725,000,000.

   Inserted: "(c) Expenditures From Trust Fund.--Amounts in the Military Restoration Trust Fund shall be available for fiscal years beginning after 2005, as provided by appropriation Acts, to replenish equipment and vehicle stocks of the Marine Corps and the Army (including the National Guard and Reserve) that have been damaged or destroyed as a result of Operation Iraqi Freedom and Operation Enduring Freedom.".

   Inserted: (3) Clerical amendments.--The table of sections for such subchapter is amended by adding at the end the following new items:

   Inserted: "Sec. 9511. No Child Left Behind Trust Fund.

   Inserted: "Sec. 9512. Military Restoration Trust Fund.".

   Original wording

   At the end of title IV, add the following:

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As printed