Page:United States Statutes at Large Volume 115 Part 1.djvu/66

 115 STAT. 44 PUBLIC LAW 107-16—JUNE 7, 2001 26 USC 3402. (8) Section 3402(q)(l) is amended by striking "equal to 28 percent of such payment" and inserting "equal to the product of the third lowest rate of tax applicable under section 1(c) and such payment". (9) Section 3402(r)(3) is amended by striking "31 percent" and inserting "the fourth lowest rate of tax applicable under section 1(c)". (10) Section 3406(a)(1) is amended by striking "equal to 31 percent of such payment" and inserting "equal to the product of the fourth lowest rate of tax applicable under section 1(c) and such payment". (11) Section 13273 of the Revenue Reconciliation Act of 1993 is amended by striking "28 percent" and inserting "the third lowest rate of tax applicable under section 1(c) of the Internal Revenue Code of 1986". 26 USC 1 note. (d) EFFECTIVE DATES.— (1) IN GENERAL.— Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2000. (2) AMENDMENTS TO WITHHOLDING PROVISIONS.—The amendments made by paragraphs (6), (7), (8), (9), (10), and (11) of subsection (c) shall apply to amounts paid after the 60th day after the date of the enactment of this Act. References to income brackets and rates of tax in such paragraphs shall be applied without regard to section l(i)(l)(D) of the Internal Revenue Code of 1986. SEC. 102. REPEAL OF PHASEOUT OF PERSONAL EXEMPTIONS. (a) IN GENERAL. — Paragraph (3) of section 151(d) (relating to exemption amount) is amended by adding at the end the following new subparagraphs: " (E) REDUCTION OF PHASEOUT. — "(i) IN GENERAL.— In the case of taxable years beginning after December 31, 2005, and before January 1, 2010, the reduction under subparagraph (A) shall be equal to the applicable fraction of the amount which would (but for this subparagraph) be the amount of such reduction. "(ii) APPLICABLE FRACTION. —For purposes of clause (i), the applicable fraction shall be determined in accordance with the following table: "For taxable years beginning The applicable in calendar year— fraction is— 2006 and 2007 % 2008 and 2009 Va. "(F) TERMINATION. —T his paragraph shall not apply to any taxable year beginning after December 31, 2009.". Applicability. (b) EFFECTIVE DATE.— The amendment made by this section 26 USC 151 note, shall apply to taxable years beginning after December 31, 2005. SEC. 103. PHASEOUT OF OVERALL LIMITATION ON ITEMIZED DEDUC- TIONS. (a) IN GENERAL. —Section 68 is amended by adding at the end the following new subsections: " (f) PHASEOUT OF LIMITATION.— " (1) IN GENERAL.—In the case of taxable years beginning after December 31, 2005, and before January 1, 2010, the reduction under subsection (a) shall be equal to the applicable

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