Middle Class Tax Relief Act of 1999

Summary: Middle Class Tax Relief Act of 1999 - Amends the Internal Revenue Code to revise tax rates for:  (1) married individuals filing joint returns and surviving spouses (eliminates the marriage penalty); (2) heads of households; (3) other individuals; and (4) estates and trusts.

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Middle Class Tax 
Relief Act of 1999''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Section 15 Not To Apply.--No amendment made by section 3 shall 
be treated as a change in a rate of tax for purposes of section 15 of 
the Internal Revenue Code of 1986.

SEC. 2. FINDINGS.

    The Congress hereby finds that--
            (1) the first Federal budget surplus in almost 30 years was 
        realized at the end of fiscal year 1998 and additional annual 
        surpluses are anticipated;
            (2) in anticipation of such surpluses, a systematic plan 
        should be put in place to retire our $5,500,000,000,000 debt 
        while restoring the social security and other trust funds; and
            (3) once such a plan has been adopted in the context of a 
        balanced Federal budget and as an alternative to new Government 
        spending, Congress should provide broad-based tax relief that 
        will allow hard-working Americans to keep more of what they 
        earn and the freedom to provide for their own needs.

SEC. 3. REDUCTION OF INCOME TAX RATES; ELIMINATION OF MARRIAGE PENALTY.

    (a) General Rule.--Section 1 (relating to tax imposed) is amended 
by striking subsections (a) through (e) and inserting the following:
    ``(a) Married Individuals Filing Joint Returns and Surviving 
Spouses.--There is hereby imposed on the taxable income of--
            ``(1) every married individual (as defined in section 7703) 
        who makes a single return jointly with his spouse under section 
        6013, and
            ``(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table:

``If taxable income is:             The tax is:
    Not over $70,000...............
                                        15% of taxable income.
    Over $70,000 but not over 
        $104,050.
                                        $10,500, plus 28% of the excess 
                                                over $70,000.
    Over $104,050 but not over 
        $158,550.
                                        $20,034, plus 31% of the excess 
                                                over $104,050.
    Over $158,550 but not over 
        $283,150.
                                        $36,929, plus 36% of the excess 
                                                over $158,550.
    Over $283,150..................
                                        $81,785, plus 39.6% of the 
                                                excess over $283,150.
    ``(b) Heads of Households.--There is hereby imposed on the taxable 
income of every head of a household (as defined in section 2(b)) a tax 
determined in accordance with the following table:

``If taxable income is:             The tax is:
    Not over $52,600...............
                                        15% of taxable income.
    Over $52,600 but not over 
        $89,150.
                                        $7,890, plus 28% of the excess 
                                                over $52,600.
    Over $89,150 but not over 
        $144,400.
                                        $18,124, plus 31% of the excess 
                                                over $89,150.
    Over $144,400 but not over 
        $283,150.
                                        $35,251.50, plus 36% of the 
                                                excess over $144,400.
    Over $283,150..................
                                        $85,201.50, plus 39.6% of the 
                                                excess over $283,150.
    ``(c) Unmarried Individuals (Other Than Surviving Spouses and Heads 
of Households).--There is hereby imposed on the taxable income of every 
individual (other than a surviving spouse as defined in section 2(a) or 
the head of a household as defined in section 2(b)) who is not a 
married individual (as defined in section 7703) a tax determined in 
accordance with the following table:

``If taxable income is:             The tax is:
    Not over $35,000...............
                                        15% of taxable income.
    Over $35,000 but not over 
        $62,450.
                                        $5,250, plus 28% of the excess 
                                                over $35,000.
    Over $62,450 but not over 
        $130,250.
                                        $12,936, plus 31% of the excess 
                                                over $62,450.
    Over $130,250 but not over 
        $283,150.
                                        $33,954, plus 36% of the excess 
                                                over $130,250.
    Over $283,150..................
                                        $88,998, plus 39.6% of the 
                                                excess over $283,150.
    ``(d) Married Individuals Filing Separate Returns.--There is hereby 
imposed on the taxable income of every married individual (as defined 
in section 7703) who does not make a single return jointly with his 
spouse under section 6013, a tax determined in accordance with the 
following table:

``If taxable income is:             The tax is:
    Not over $35,000...............
                                        15% of taxable income.
    Over $35,000 but not over 
        $52,025.
                                        $5,250, plus 28% of the excess 
                                                over $35,000.
    Over $52,025 but not over 
        $79,275.
                                        $10,017, plus 31% of the excess 
                                                over $52,025.
    Over $79,275 but not over 
        $141,575.
                                        $18,464.50, plus 36% of the 
                                                excess over $79,275.
    Over $141,575..................
                                        $40,892.50, plus 39.6% of the 
                                                excess over $141,575.
    ``(e) Estates and Trusts.--There is hereby imposed on the taxable 
income of--
            ``(1) every estate, and
            ``(2) every trust,
taxable under this subsection a tax determined in accordance with the 
following table:

``If taxable income is:             The tax is:
    Not over $1,750................
                                        15% of taxable income.
    Over $1,750 but not over $4,050
                                        $262.50, plus 28% of the excess 
                                                over $1,750.
    Over $4,050 but not over $6,200
                                        $906.50, plus 31% of the excess 
                                                over $4,050.
    Over $6,200 but not over $8,450
                                        $1,573, plus 36% of the excess 
                                                over $6,200.
    Over $8,450....................
                                        $2,383, plus 39.6% of the 
                                                excess over $8,450.''.
    (b) Conforming Amendments.--
            (1) Subsection (f) of section 1 is amended--
                    (A) by striking ``1993'' in paragraph (1) and 
                inserting ``1999'',
                    (B) by striking ``1992'' in paragraph (3)(B) and 
                inserting ``1998'', and
                    (C) by striking paragraph (7).
            (2) The following provisions are each amended by striking 
        ``1992'' and inserting ``1998'' each place it appears:
                    (A) Section 25A(h).
                    (B) Section 32(j)(1)(B).
                    (C) Section 41(e)(5)(C).
                    (D) Section 59(j)(2)(B).
                    (E) Section 63(c)(4)(B).
                    (F) Section 68(b)(2)(B).
                    (G) Section 135(b)(2)(B)(ii).
                    (H) Section 151(d)(4).
                    (I) Section 220(g)(2).
                    (J) Section 221(g)(1)(B).
                    (K) Section 512(d)(2)(B).
                    (L) Section 513(h)(2)(C)(ii).
                    (M) Section 685(c)(3)(B).
                    (N) Section 877(a)(2).
                    (O) Section 911(b)(2)(D)(ii)(II).
                    (P) Section 2032A(a)(3)(B).
                    (Q) Section 2503(b)(2)(B).
                    (R) Section 2631(c)(1)(B).
                    (S) Section 4001(e)(1)(B).
                    (T) Section 4261(e)(4)(A)(ii).
                    (U) Section 6039F(d).
                    (V) Section 6323(i)(4)(B).
                    (W) Section 6601(j)(3)(B).
                    (X) Section 7430(c)(1).
            (3) Subclause (II) of section 42(h)(6)(G)(i) is amended by 
        striking ``1987'' and inserting ``1998''.
            (4) Subparagraph (B) of section 6334(g)(1) is amended by 
        striking ``by substituting `calendar year 1998' for `calendar 
        year 1992' in subparagraph (B) thereof''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.