S.Amdt. 134

SA 134. Mr. CORNYN submitted an amendment intended to be proposed to
amendment SA 98 proposed by Mr. Inouye (for himself and Mr. Baucus) to
the bill H.R. 1, making supplemental appropriations for job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and State and local fiscal
stabilization, for fiscal year ending September 30, 2009, and for other
purposes; which was ordered to lie on the table; as follows:

At the end of part I of subtitle A of title I of division
B, insert the following:

SEC. __. ELIMINATION OF TAX ON CAPITAL GAINS AND DIVIDENDS
PAID TO MIDDLE CLASS TAXPAYERS IN 2009 AND
2010.

(a) In General.--Section 1(h) of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
paragraph:
``(12) Special rule for 2009 and 2010.--In the case of any
taxpayer with an adjusted gross income which does not exceed
$75,000 ($150,000 in the case of a joint return) in any
taxable year beginning in 2009 or 2010, paragraph (1)(C)
shall be applied by substituting `0 percent' for `15
percent'.''.
(b) Alternative Minimum Tax.--Section 55(b) of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(5) Special rule for 2009 and 2010.--In the case of any
taxpayer with an adjusted gross income which does not exceed
$75,000 ($150,000 in the case of a joint return) in any
taxable year beginning in 2009 or 2010, paragraph (3)(C)
shall be applied by substituting `0 percent' for `15
percent'.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.
______