PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 459 If taxable income is: The tax is: Over $3,900 but not over $5,500 $785, plus 31% of the excess over $3,500. Over $5,500 $1,405, plus 36% of the excess over $5,500.^ (b) CONFORMING AMENDMENTS. — (1) Section 531 is amended by striking "28 percent" and 26 USC 531. inserting "36 percent". (2) Section 541 is amended by striking "28 percent" and inserting "36 percent". (3)(A) Subsection (f) of section 1 is amended— (i) by striking "1990" in paragraph (1) and inserting "1993", and (ii) by striking "1989" in paragraph (3)(B) and inserting " 1992". (B) Subsection (f) of section 1 is amended by adding at the end thereof the following new paragraph: "(7) SPECIAL RULE FOR CERTAIN BRACKETS.— "(A) CALENDAR YEAR 1994.— In prescribing the tables under paragraph (1) which apply with respect to taxable years beginning in calendar year 1994, the Secretary shall N^ make no adjustment to the dollar amounts at which the 36 percent rate bracket begins or at which the 39.6 percent rate begins under any table contained in subsection (a), (b),(c),(d),or(e). "(B) LATER CALENDAR YEARS. — In prescribing tables under paragraph (1) which apply with respect to taxable years beginning in a calendar year after 1994, the costof-living adjustment used in making adjustments to the dollar amounts referred to in subparagraph (A) shall be determined under paragraph (3) by substituting '1993' for ' 1992'. " (C) Subparagraph (C) of section 41(e)(5) is amended by striking "1989" each place it appears and inserting "1992. L (D) Subparagraph (B) of section 63(c)(4) is amended by striking "1989" and inserting "1992". (E) Subparagraph (B) of section 68(b)(2) is amended by striking "1989" and inserting "1992". (F) Subparagraph (B) of section 132(f)(6) is amended by striking ", determined by substituting" and all that follows down through the period at the end thereof and inserting (G) Subparagraphs (A)(ii) and (B)(ii) of section 151(d)(4) are each amended by striking "1989" and inserting "1992". (H) Clause (ii) of section 513(h)(2)(C) is amended by striking "1989" and inserting "1992". (4) Paragraph (3) of section 453A(c) is amended by adding at the end thereof the following new sentence: "For purposes of applying the preceding sentence with respect to so much of the gain which, when recognized, will be treated as long-term capital gain, the maximum rate on net capital gain under section 1(h) or 1201 (whichever is appropriate) shall be taken into account." (c) EFFECTIVE DATE.— The amendments made by this section 26 USC 1 note. shall apply to taxable years beginning after December 31, 1992. (d) ELECTION TO PAY ADDITIONAL 1993 TAXES IN INSTALL- 26 USC 1 note. MENTS.—
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