Amends the definitions of dependent and of head of household. Modifies provisions concerning: (1) the dependent care credit; (2) the child tax credit; (3) the earned income credit; and (4) the deduction for a personal exemption for dependents. Accelerates the repeal of the phaseout of personal exemptions and of the overall limitation on itemized deductions. Repeals certain phaseout provisions, including with regard to the child tax credit.
Modifies provisions dealing with the capital gains tax (including, allowing the deduction for nonitemizers) and providing for a deduction for points on a home mortgage. Provides for the partial exclusion of dividends and interest. Increases the exclusion for group-term life insurance purchased for employees.
Combines the Hope and Lifetime Learning credits.
Repeals provisions regarding collapsible corporations. Sets forth special rules dealing with the active business test for certain corporate reorganizations. Provides rules for determining the transferor's basis of intangible property to a corporation.
Repeals the ability of partnerships to elect to apply large partnership rules, effective after December 31, 2003. Repeals the personal holding company tax.
Grants the Secretary of the Treasury the authority to prescribe the class life of any property, except for residential rental property and nonresidential real property. Repeals the occupational taxes relating to distilled spirits, wine, and beer.
Converts the failure to pay one's estimated income tax penalty to an interest charge on the accumulated unpaid balance.