I

106TH CONGRESS

2D SESSION H. R. 4810

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

resolution on the budget for fiscal year 2001.

IN THE HOUSE OF REPRESENTATIVES

JULY 10, 2000

Mr. ARCHER introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

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,

3 SECTION 1. SHORT TITLE, ETC.

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

5 ‘‘Marriage Tax Penalty Relief Reconciliation Act of

6 2000’’.

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

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

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

10 Code of 1986.
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1 SEC. 2. ELIMINATION OF MARRIAGE PENALTY IN STAND2 ARD DEDUCTION.

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

4 the Internal Revenue Code of 1986 (relating to standard

5 deduction) is amended—

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

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

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

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

10 (B),

11 (3) by striking ‘‘in the case of’’ and all that fol12 lows in subparagraph (C) and inserting ‘‘in any

13 other case.’’, and

14 (4) by striking subparagraph (D).

15 (b) TECHNICAL AMENDMENTS.—

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

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

18 all that follows through ‘‘shall be applied’’ and in19 serting ‘‘(other than with respect to sections

20 63(c)(4) and 151(d)(4)(A)) shall be applied’’.

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

22 is amended by adding at the end the following flush

23 sentence:

24 ‘‘The preceding sentence shall not apply to the

25 amount referred to in paragraph (2)(A).’’.
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years beginning after

3 December 31, 2000.

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

5 BRACKET; REPEAL OF REDUCTION OF RE6 FUNDABLE TAX CREDITS.

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

8 Internal Revenue Code of 1986 (relating to adjustments

9 in tax tables so that inflation will not result in tax in10 creases) is amended by adding at the end the following

11 new paragraph:

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

13 PERCENT BRACKET.—

14 ‘‘(A) IN GENERAL.—With respect to tax15 able years beginning after December 31, 2002,

16 in prescribing the tables under paragraph (1)—

17 ‘‘(i) the maximum taxable income in

18 the lowest rate bracket in the table con19 tained in subsection (a) (and the minimum

20 taxable income in the next higher taxable

21 income bracket in such table) shall be the

22 applicable percentage of the maximum tax23 able income in the lowest rate bracket in

24 the table contained in subsection (c) (after
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1 any other adjustment under this sub2 section), and

3 ‘‘(ii) the comparable taxable income

4 amounts in the table contained in subsection (d) shall be 1 5 ⁄2 of the amounts de6 termined under clause (i).

7 ‘‘(B) APPLICABLE PERCENTAGE.—For

8 purposes of subparagraph (A), the applicable

9 percentage shall be determined in accordance

10 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.

11 ‘‘(C) ROUNDING.—If any amount deter12 mined under subparagraph (A)(i) is not a mul13 tiple of $50, such amount shall be rounded to

14 the next lowest multiple of $50.’’.

15 (b) REPEAL OF REDUCTION OF REFUNDABLE TAX

16 CREDITS.—

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

18 is amended by striking paragraph (2) and redesig19 nating paragraph (3) as paragraph (2).

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

21 striking subsection (h).
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1 (c) TECHNICAL AMENDMENTS.—

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

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

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

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

6 of such Code is amended by inserting ‘‘PHASEOUT

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

8 before ‘‘ADJUSTMENTS’’.

9 (d) EFFECTIVE DATES.—

10 (1) IN GENERAL.—Except as provided by para11 graph (2), the amendments made by this section

12 shall apply to taxable years beginning after Decem13 ber 31, 2002.

14 (2) REPEAL OF REDUCTION OF REFUNDABLE

15 TAX CREDITS.—The amendments made by sub16 section (b) shall apply to taxable years beginning

17 after December 31, 2001.

18 SEC. 4. MARRIAGE PENALTY RELIEF FOR EARNED INCOME

19 CREDIT.

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

21 the Internal Revenue Code of 1986 (relating to percent22 ages and amounts) is amended—

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

24 inserting ‘‘AMOUNTS.—
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), the earned’’, and

3 (2) by adding at the end the following new sub4 paragraph:

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

6 joint return, the phaseout amount determined

7 under subparagraph (A) shall be increased by

8 $2,000.’’.

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

10 section 32( j) of such Code (relating to inflation adjust11 ments) is amended to read as follows:

12 ‘‘(B) the cost-of-living adjustment deter13 mined under section 1(f )(3) for the calendar

14 year in which the taxable year begins,

15 determined—

16 ‘‘(i) in the case of amounts in sub17 sections (b)(2)(A) and (i)(1), by sub18 stituting ‘calendar year 1995’ for ‘calendar

19 year 1992’ in subparagraph (B) thereof,

20 and

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

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

23 ‘calendar year 2000’ for ‘calendar year

24 1992’ in subparagraph (B) of such section

25 1.’’.
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1 (c) ROUNDING.—Section 32( j)(2)(A) of such Code

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

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

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

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

6 this section shall apply to taxable years beginning after

7 December 31, 2000.

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