income which is taxed at a rate below 24 percent shall not be more than the earned taxable income of such child. (ii) 35-percent bracket The maximum taxable income which is taxed at a rate below 35 percent shall not be more than the sum of— (I) the earned taxable income of such child, plus (II) the minimum taxable income for the 35-percent bracket in the table under paragraph (2)(E) (as adjusted under paragraph (3)) for the taxable year. (iii) 38.5-percent bracket The maximum taxable income which is taxed at a rate below 38.5 percent shall not be more than the sum of— (I) the earned taxable income of such child, plus (II) the minimum taxable income for the 38.5-percent bracket in the table under paragraph (2)(E) (as adjusted under paragraph (3)) for the taxable year. (C) Coordination with capital gains rates For purposes of applying section 1(h) (after the modifications under paragraph (5))— (i) the maximum zero rate amount shall not be more than the sum of— (I) the earned taxable income of such child, plus (II) the amount in effect under paragraph (5)(B)(i)(IV) for the taxable year, and (ii) the maximum 15-percent rate amount shall not be more than the sum of— (I) the earned taxable income of such child, plus (II) the amount in effect under paragraph (5)(B)(ii)(IV) for the taxable year. (D) Earned taxable income For purposes of this paragraph, the term earned taxable income means, with respect to any child for any taxable year, the taxable income of such child reduced (but not below zero) by the net unearned income (as defined in subsection (g)(4)) of such child. (5) Application of current income tax brackets to capital gains brackets (A) In general Section 1(h)(1) shall be applied— (i) by substituting below the maximum zero rate amount for which would (without regard to this paragraph) be taxed at a rate below 25 percent in subparagraph (B)(i), and (ii) by substituting below the maximum 15-percent rate amount for which would (without regard to this paragraph) be taxed at a rate below 39.6 percent in