I

103D CONGRESS

1ST SESSION H. R. 436

To amend the Internal Revenue Code of 1986 to increase the amount of

the exemption for dependent children under age 18 to $3,500, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 5, 1993

Mr. WOLF (for himself, Mr. KYL, Mr. TALENT, Mr. ACKERMAN, Mr. GOSS,

Mr. ROHRABACHER, Mr. HALL of Texas, Mr. BAKER of Louisiana, Mr.

BARRETT of Nebraska, Mr. BEREUTER, Mr. BUNNING, Mr. CALLAHAN,

Mr. COBLE, Mr. COLEMAN, Mr. COX, Mr. DELAY, Mr. DOOLITTLE, Mr.

DUNCAN, Mr. FRANKS of Connecticut, Mr. GILCHREST, Mr. GINGRICH,

Ms. MOLINARI, Mr. MURPHY, Mr. NEAL of Massachusetts, Mr. NUSSLE,

Mr. PACKARD, Mr. PAXON, Mr. HEFLEY, Mr. HUNTER, Mr. HUTTO, Mr.

HANCOCK, Ms. NORTON, Mr. RAVENEL, Mr. ROTH, Mr. HERGER, Mr.

SHAYS, Mr. SMITH of Oregon, Mr. SMITH of New Jersey, Mr. SPENCE,

Mr. WALSH, Mr. SENSENBRENNER, Mr. GALLEGLY, Mr. HENRY, Mr.

SOLOMON, Mr. INHOFE, Mr. YATES, Mr. HASTERT, Mr. CHAPMAN, Mr.

TAYLOR of North Carolina, Mr. PARKER, Mr. SKEEN, Mr. JOHNSTON of

Florida, Mrs. COLLINS of Michigan, Mr. BARTON of Texas, Mr. BURTON

of Indiana, Mr. CUNNINGHAM, Mr. EMERSON, Mrs. VUCANOVICH, Mr.

RAMSTAD, Mr. HANSEN, Mr. HYDE, Mr. LIGHTFOOT, Mr. LIVINGSTON,

Mr. KILDEE, Mr. MAZZOLI, Mr. OXLEY, Mr. SCHIFF, Mr. MACHTLEY,

Mr. MOORHEAD, Mr. MORAN, Mr. CONYERS, Mr. MYERS of Indiana, Mr.

PETRI, Mr. FAWELL, Ms. MEEK, Mr. UPTON, Mr. OLVER, Mr. CLINGER,

Mr. ZIMMER, Mr. GILLMOR, Mr. GEKAS, Mr. CRAPO, Ms. FOWLER, Mr.

CRAMER, Mr. PORTER, Mr. SMITH of Texas, Mr. ARMEY, Mr.

SANTORUM, and Mr. DORNAN) introduced the following bill; which was

referred to the Committee on Ways and Means
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•HR 436 IH

A BILL

To amend the Internal Revenue Code of 1986 to increase

the amount of the exemption for dependent children

under age 18 to $3,500, and for other purposes.

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

3 SECTION 1. STATEMENT OF CONGRESSIONAL FINDINGS.

4 The Congress hereby finds that—

5 (1) the erosion of the personal exemption over

6 the past several decades has exacted an inordinate

7 financial penalty on families with children,

8 (2) the simplest and most effective way to rein9 vest and strengthen families is by allowing families

10 to keep more of their own hard-earned money,

11 (3) an increase in the dependent deduction

12 would begin to ease the growing financial strain on

13 families, and mark a return to tax fairness for fami14 lies,

15 (4) if the personal exemption had kept pace

16 with inflation, increases in per capita income and in17 creases in family costs, it would be approximately

18 $8,000 today, and

19 (5) the dependent deduction should be raised to

20 $3,500 with a goal to reach the appropriate level by

21 the year 2000.
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•HR 436 IH

1 SEC. 2. INCREASE IN PERSONAL EXEMPTION FOR CERTAIN

2 DEPENDENT CHILDREN.

3 (a) GENERAL RULE.—Paragraph (1) of section

4 151(d) of the Internal Revenue Code of 1986 (defining

5 exemption amount) is amended to read as follows:

6 ‘‘(1) IN GENERAL.—Except as otherwise pro7 vided in this subsection, the term ‘exemption

8 amount’ means $2,000 (or, in the case of an exemp9 tion under subsection (c) for a child who has not at10 tained age 18 before the close of the calendar year

11 in which the taxable year begins, $3,500).’’

12 (b) CONFORMING AMENDMENTS.—

13 (1) Subparagraph (A) of section 151(d)(3) of

14 such Code is amended by striking ‘‘the exemption

15 amount’’ and inserting ‘‘each dollar amount in effect

16 under paragraph (1) (after any adjustment under

17 paragraph (4))’’.

18 (2) Subparagraph (A) of section 151(d)(4) of

19 such Code is amended—

20 (A) by striking ‘‘the dollar amount’’ and

21 inserting ‘‘each dollar amount’’, and

22 (B) by adding at the end thereof the fol23 lowing new sentence: ‘‘In the case of the $3,500

24 amount contained in paragraph (1), the preced25 ing sentence shall be applied by substituting
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•HR 436 IH

1 ‘1993’ for ‘1989’ the first place it appears, and

2 by substituting ‘1992’ for ‘1988’.’’

3 SEC. 3. ROUNDING OF INFLATION ADJUSTMENTS.

4 Paragraph (6) of section 1(f) of the Internal Revenue

5 Code of 1986 (relating to rounding) is amended to read

6 as follows:

7 ‘‘(6) ROUNDING.—If any increase determined

8 under paragraph (2)(A), subsection (g)(4), section

9 63(c)(4), section 68(b)(2), or section 151(d)(4) is

10 not a multiple of $10, such increase shall be rounded

11 to the nearest multiple of $10.’’

12 SEC. 4. EFFECTIVE DATE.

13 The amendments made by this Act shall apply to tax14 able years beginning after December 31, 1992.

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