106TH CONGRESS

2D SESSION H. R. 4810

AN ACT

To provide for reconciliation pursuant to section 103(a)(1)

of the concurrent resolution on the budget for fiscal

year 2001.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

•HR 4810 EH

1 SECTION 1. SHORT TITLE; ETC.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Marriage Tax Penalty Relief Reconciliation Act of

4 2000’’.

5 (b) SECTION 15 NOT TO APPLY.—No amendment

6 made by this Act shall be treated as a change in a rate

7 of tax for purposes of section 15 of the Internal Revenue

8 Code of 1986.

9 SEC. 2. ELIMINATION OF MARRIAGE PENALTY IN STAND10 ARD DEDUCTION.

11 (a) IN GENERAL.—Paragraph (2) of section 63(c) of

12 the Internal Revenue Code of 1986 (relating to standard

13 deduction) is amended—

14 (1) by striking ‘‘$5,000’’ in subparagraph (A)

15 and inserting ‘‘200 percent of the dollar amount in

16 effect under subparagraph (C) for the taxable year’’,

17 (2) by adding ‘‘or’’ at the end of subparagraph

18 (B),

19 (3) by striking ‘‘in the case of’’ and all that fol20 lows in subparagraph (C) and inserting ‘‘in any

21 other case.’’, and

22 (4) by striking subparagraph (D).

23 (b) TECHNICAL AMENDMENTS.—

24 (1) Subparagraph (B) of section 1(f)(6) of such

25 Code is amended by striking ‘‘(other than with’’ and

26 all that follows through ‘‘shall be applied’’ and in-
3

•HR 4810 EH

1 serting ‘‘(other than with respect to sections

2 63(c)(4) and 151(d)(4)(A)) shall be applied’’.

3 (2) Paragraph (4) of section 63(c) of such Code

4 is amended by adding at the end the following flush

5 sentence:

6 ‘‘The preceding sentence shall not apply to the

7 amount referred to in paragraph (2)(A).’’.

8 (c) EFFECTIVE DATE.—The amendments made by

9 this section shall apply to taxable years beginning after

10 December 31, 2000.

11 SEC. 3. PHASEOUT OF MARRIAGE PENALTY IN 15-PERCENT

12 BRACKET; REPEAL OF REDUCTION OF RE13 FUNDABLE TAX CREDITS.

14 (a) IN GENERAL.—Subsection (f) of section 1 of the

15 Internal Revenue Code of 1986 (relating to adjustments

16 in tax tables so that inflation will not result in tax in17 creases) is amended by adding at the end the following

18 new paragraph:

19 ‘‘(8) PHASEOUT OF MARRIAGE PENALTY IN 15-

20 PERCENT BRACKET.—

21 ‘‘(A) IN GENERAL.—With respect to tax22 able years beginning after December 31, 2002,

23 in prescribing the tables under paragraph (1)—

24 ‘‘(i) the maximum taxable income in

25 the lowest rate bracket in the table con-
4

•HR 4810 EH

1 tained in subsection (a) (and the minimum

2 taxable income in the next higher taxable

3 income bracket in such table) shall be the

4 applicable percentage of the maximum tax5 able income in the lowest rate bracket in

6 the table contained in subsection (c) (after

7 any other adjustment under this sub8 section), and

9 ‘‘(ii) the comparable taxable income

10 amounts in the table contained in subsection (d) shall be 1 11 ⁄2 of the amounts de12 termined under clause (i).

13 ‘‘(B) APPLICABLE PERCENTAGE.—For

14 purposes of subparagraph (A), the applicable

15 percentage shall be determined in accordance

16 with the following table:

‘‘For taxable years beginning The applicable

in calendar year— percentage is—

2003 ............................................................................. 170.3

2004 ............................................................................. 173.8

2005 ............................................................................. 183.5

2006 ............................................................................. 184.3

2007 ............................................................................. 187.9

2008 and thereafter ..................................................... 200.0.

17 ‘‘(C) ROUNDING.—If any amount deter18 mined under subparagraph (A)(i) is not a mul19 tiple of $50, such amount shall be rounded to

20 the next lowest multiple of $50.’’.
5

•HR 4810 EH

1 (b) REPEAL OF REDUCTION OF REFUNDABLE TAX

2 CREDITS.—

3 (1) Subsection (d) of section 24 of such Code

4 is amended by striking paragraph (2) and redesig5 nating paragraph (3) as paragraph (2).

6 (2) Section 32 of such Code is amended by

7 striking subsection (h).

8 (c) TECHNICAL AMENDMENTS.—

9 (1) Subparagraph (A) of section 1(f)(2) of such

10 Code is amended by inserting ‘‘except as provided in

11 paragraph (8),’’ before ‘‘by increasing’’.

12 (2) The heading for subsection (f) of section 1

13 of such Code is amended by inserting ‘‘PHASEOUT

14 OF MARRIAGE PENALTY IN 15-PERCENT BRACKET;’’

15 before ‘‘ADJUSTMENTS’’.

16 (d) EFFECTIVE DATES.—

17 (1) IN GENERAL.—Except as provided by para18 graph (2), the amendments made by this section

19 shall apply to taxable years beginning after Decem20 ber 31, 2002.

21 (2) REPEAL OF REDUCTION OF REFUNDABLE

22 TAX CREDITS.—The amendments made by sub23 section (b) shall apply to taxable years beginning

24 after December 31, 2001.
6

•HR 4810 EH

1 SEC. 4. MARRIAGE PENALTY RELIEF FOR EARNED INCOME

2 CREDIT.

3 (a) IN GENERAL.—Paragraph (2) of section 32(b) of

4 the Internal Revenue Code of 1986 (relating to percent5 ages and amounts) is amended—

6 (1) by striking ‘‘AMOUNTS.—The earned’’ and

7 inserting ‘‘AMOUNTS.—

8 ‘‘(A) IN GENERAL.—Subject to subpara9 graph (B), the earned’’, and

10 (2) by adding at the end the following new sub11 paragraph:

12 ‘‘(B) JOINT RETURNS.—In the case of a

13 joint return, the phaseout amount determined

14 under subparagraph (A) shall be increased by

15 $2,000.’’.

16 (b) INFLATION ADJUSTMENT.—Paragraph (1)(B) of

17 section 32(j) of such Code (relating to inflation adjust18 ments) is amended to read as follows:

19 ‘‘(B) the cost-of-living adjustment deter20 mined under section 1(f)(3) for the calendar

21 year in which the taxable year begins,

22 determined—

23 ‘‘(i) in the case of amounts in sub24 sections (b)(2)(A) and (i)(1), by sub25 stituting ‘calendar year 1995’ for ‘calendar
7

•HR 4810 EH

1 year 1992’ in subparagraph (B) thereof,

2 and

3 ‘‘(ii) in the case of the $2,000 amount

4 in subsection (b)(2)(B), by substituting

5 ‘calendar year 2000’ for ‘calendar year

6 1992’ in subparagraph (B) of such section

7 1.’’.

8 (c) ROUNDING.—Section 32(j)(2)(A) of such Code

9 (relating to rounding) is amended by striking ‘‘subsection

10 (b)(2)’’ and inserting ‘‘subsection (b)(2)(A) (after being

11 increased under subparagraph (B) thereof)’’.

12 (d) EFFECTIVE DATE.—The amendments made by

13 this section shall apply to taxable years beginning after

14 December 31, 2000.

Passed the House of Representatives July 12, 2000.

Attest:

Clerk.

106TH CONGRESS

2D SESSION H. R. 4810

AN ACT

To provide for reconciliation pursuant to section

103(a)(1) of the concurrent resolution on thebudget for fiscal year 2001.