In the Senate of the United States,

July 18, 2000.

Resolved, That the bill from the House of Representatives (H.R. 4810) entitled ‘‘An Act to provide for reconciliation pursuant to section 103(a)(1) of the concurrent resolution on the budget for fiscal year 2001.’’, do pass with the

following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE.

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

3 ‘‘Marriage Tax Relief Reconciliation Act of 2000’’.
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1 (b) SECTION 15 NOT TO APPLY.—No amendment

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

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

4 Code of 1986.

5 SEC. 2. ELIMINATION OF MARRIAGE PENALTY IN STAND6 ARD DEDUCTION.

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

8 the Internal Revenue Code of 1986 (relating to standard

9 deduction) is amended—

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

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

12 effect under subparagraph (C) for the taxable year’’;

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

14 (B);

15 (3) by striking ‘‘in the case of’’ and all that fol16 lows in subparagraph (C) and inserting ‘‘in any

17 other case.’’; and

18 (4) by striking subparagraph (D).

19 (b) TECHNICAL AMENDMENTS.—

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

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

22 all that follows through ‘‘shall be applied’’ and insert23 ing ‘‘(other than with respect to sections 63(c)(4) and

24 151(d)(4)(A)) shall be applied’’.
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1 (2) Paragraph (4) of section 63(c) of such Code

2 is amended by adding at the end the following flush

3 sentence:

4 ‘‘The preceding sentence shall not apply to the

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

6 (c) EFFECTIVE DATE.—The amendments made by this

7 section shall apply to taxable years beginning after Decem8 ber 31, 2000.

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

10 AND 28-PERCENT RATE BRACKETS.

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

12 Internal Revenue Code of 1986 (relating to adjustments in

13 tax tables so that inflation will not result in tax increases)

14 is amended by adding at the end the following new para15 graph:

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

17 PERCENT AND 28-PERCENT RATE BRACKETS.—

18 ‘‘(A) IN GENERAL.—With respect to taxable

19 years beginning after December 31, 2001, in pre20 scribing the tables under paragraph (1)—

21 ‘‘(i) the maximum taxable income

22 amount in the 15-percent rate bracket, the

23 minimum and maximum taxable income

24 amounts in the 28-percent rate bracket, and

25 the minimum taxable income amount in the
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1 31-percent rate bracket in the table con2 tained in subsection (a) shall be the appli3 cable percentage of the comparable taxable

4 income amounts in the table contained in

5 subsection (c) (after any other adjustment

6 under this subsection), and

7 ‘‘(ii) the comparable taxable income

8 amounts in the table contained in subsection (d) shall be 1 9 ⁄2 of the amounts deter10 mined under clause (i).

11 ‘‘(B) APPLICABLE PERCENTAGE.—For pur12 poses of subparagraph (A), the applicable per13 centage shall be determined in accordance with

14 the following table:

‘‘For taxable years beginning The applicable

in calendar year— percentage is—

2002 .................................................................................... 170.3

2003 .................................................................................... 173.8

2004 .................................................................................... 180.0

2005 .................................................................................... 183.2

2006 .................................................................................... 185.0

2007 and thereafter ........................................................... 200.0.

15 ‘‘(C) ROUNDING.—If any amount deter16 mined under subparagraph (A)(i) is not a mul17 tiple of $50, such amount shall be rounded to the

18 next lowest multiple of $50.’’.

19 (b) TECHNICAL AMENDMENTS.—
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1 (1) Subparagraph (A) of section 1(f)(2) of such

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

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

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

5 such Code is amended by inserting ‘‘PHASEOUT OF

6 MARRIAGE PENALTY IN 15-PERCENT AND 28-PER7 CENT RATE BRACKETS;’’ before ‘‘ADJUSTMENTS’’.

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

9 section shall apply to taxable years beginning after Decem10 ber 31, 2001.

11 SEC. 4. MARRIAGE PENALTY RELIEF FOR EARNED INCOME

12 CREDIT.

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

14 the Internal Revenue Code of 1986 (relating to percentages

15 and amounts) is amended—

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

17 inserting ‘‘AMOUNTS.—

18 ‘‘(A) IN GENERAL.—Subject to subpara19 graph (B), the earned’’; and

20 (2) by adding at the end the following new sub21 paragraph:

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

23 joint return, the phaseout amount determined

24 under subparagraph (A) shall be increased by

25 $2,500.’’.
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1 (b) INFLATION ADJUSTMENT.—Paragraph (1)(B) of

2 section 32(j) of such Code (relating to inflation adjust3 ments) is amended to read as follows:

4 ‘‘(B) the cost-of-living adjustment deter5 mined under section 1(f)(3) for the calendar year

6 in which the taxable year begins, determined—

7 ‘‘(i) in the case of amounts in sub8 sections (b)(2)(A) and (i)(1), by sub9 stituting ‘calendar year 1995’ for ‘calendar

10 year 1992’ in subparagraph (B) thereof,

11 and

12 ‘‘(ii) in the case of the $2,500 amount

13 in subsection (b)(2)(B), by substituting ‘cal14 endar year 2000’ for ‘calendar year 1992’

15 in subparagraph (B) of such section 1.’’.

16 (c) ROUNDING.—Section 32(j)(2)(A) of such Code (re17 lating to rounding) is amended by striking ‘‘subsection

18 (b)(2)’’ and inserting ‘‘subsection (b)(2)(A) (after being in19 creased under subparagraph (B) thereof)’’.

20 (d) EFFECTIVE DATE.—The amendments made by this

21 section shall apply to taxable years beginning after Decem22 ber 31, 2000.
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1 SEC. 5. PRESERVE FAMILY TAX CREDITS FROM THE ALTER2 NATIVE MINIMUM TAX.

3 (a) IN GENERAL.—Subsection (a) of section 26 of the

4 Internal Revenue Code of 1986 (relating to limitation based

5 on tax liability; definition of tax liability) is amended to

6 read as follows:

7 ‘‘(a) LIMITATION BASED ON AMOUNT OF TAX.—The

8 aggregate amount of credits allowed by this subpart for the

9 taxable year shall not exceed the sum of—

10 ‘‘(1) the taxpayer’s regular tax liability for the

11 taxable year reduced by the foreign tax credit allow12 able under section 27(a), and

13 ‘‘(2) the tax imposed for the taxable year by sec14 tion 55(a).’’.

15 (b) CONFORMING AMENDMENTS.—

16 (1) Subsection (d) of section 24 of such Code is

17 amended by striking paragraph (2) and by redesig18 nating paragraph (3) as paragraph (2).

19 (2) Section 32 of such Code is amended by strik20 ing subsection (h).

21 (3) Section 904 of such Code is amended by

22 striking subsection (h) and by redesignating sub23 sections (i), (j), and (k) as subsections (h), (i), and

24 (j), respectively.
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1 (c) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to taxable years beginning after Decem3 ber 31, 2001.

4 SEC. 6. COMPLIANCE WITH BUDGET ACT.

5 (a) IN GENERAL.—Except as provided in subsection

6 (b), all amendments made by this Act which are in effect

7 on September 30, 2005, shall cease to apply as of the close

8 of September 30, 2005.

9 (b) SUNSET FOR CERTAIN PROVISIONS ABSENT SUB10 SEQUENT LEGISLATION.—The amendments made by sec11 tions 2, 3, 4, and 5 of this Act shall not apply to any tax12 able year beginning after December 31, 2004.

Attest:

Secretary.
106TH CONGRESS

2D SESSION H. R. 4810

AMENDMENT