II

107TH CONGRESS

1ST SESSION S. 11

To amend the Internal Revenue Code of 1986 to eliminate the marriage

penalty by providing that the income tax rate bracket amounts, and

the amount of the standard deduction, for joint returns shall be twice

the amounts applicable to unmarried individuals, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 22, 2001

Mrs. HUTCHISON (for herself, Mr. LOTT, Mr. BROWNBACK, Mr. NICKLES, Mr.

KYL, Mr. MURKOWSKI, Mr. ALLEN, Mr. GRAMM, Mr. CRAPO, Mr. WARNER, Mr. HAGEL, Mr. BUNNING, Mr. FRIST, Mr. MCCONNELL, Mr.

BURNS, Mr. ENSIGN, Mr. HELMS, and Mr. CRAIG) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to eliminate

the marriage penalty by providing that the income tax

rate bracket amounts, and the amount of the standard

deduction, for joint returns shall be twice the amounts

applicable to unmarried individuals, 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,
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1 SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

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

3 ‘‘Marriage Tax Penalty Elimination Act of 2001’’.

4 (b) AMENDMENT OF 1986 CODE.—Except as other5 wise expressly provided, whenever in this Act an amend6 ment or repeal is expressed in terms of an amendment

7 to, or repeal of, a section or other provision, the reference

8 shall be considered to be made to a section or other provi9 sion of the Internal Revenue Code of 1986.

10 (c) SECTION 15 NOT TO APPLY.—No amendment

11 made by section 2 shall be treated as a change in a rate

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

13 Code of 1986 .

14 SEC. 2. ELIMINATION OF MARRIAGE PENALTY IN INDI15 VIDUAL INCOME TAX RATES.

16 (a) GENERAL RULE.—Section 1 (relating to tax im17 posed) is amended by striking subsections (a) through (e)

18 and inserting the following:

19 ‘‘(a) MARRIED INDIVIDUALS FILING JOINT RETURNS

20 AND SURVIVING SPOUSES.—There is hereby imposed on

21 the taxable income of—

22 ‘‘(1) every married individual (as defined in sec23 tion 7703) who makes a single return jointly with

24 his spouse under section 6013, and

25 ‘‘(2) every surviving spouse (as defined in sec26 tion 2(a)),
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1 a tax determined in accordance with the following table:

‘‘If taxable income is: The tax is:

Not over $54,100 .......................... 15% of taxable income.

Over $54,100 but not over

$131,100.

$8,151, plus 28% of the excess over

$54,100.

Over $131,100 but not over

$273,500.

$29,647, plus 31% of the excess over

$131,100.

Over $273,500 but not over

$594,600.

$73,791, plus 36% of the excess over

$273,500.

Over $594,600 ............................... $189,315, plus 39.6% of the excess

over $594,600.

2 ‘‘(b) HEADS OF HOUSEHOLDS.—There is hereby im3 posed on the taxable income of every head of a household

4 (as defined in section 2(b)) a tax determined in accordance

5 with the following table:

‘‘If taxable income is: The tax is:

Not over $36,250 .......................... 15% of taxable income.

Over $36,250 but not over

$93,600.

$5,437.50, plus 28% of the excess

over $36,250.

Over $93,600 but not over

$151,600.

$21,495.50, plus 31% of the excess

over $93,600.

Over $151,600 but not over

$297,300.

$39,475.50, plus 36% of the excess

over $151,600.

Over $297,300 ............................... $91,927.50, plus 39.6% of the excess

over $297,300.

6 ‘‘(c) OTHER INDIVIDUALS.—There is hereby imposed

7 on the taxable income of every individual (other than an

8 individual to whom subsection (a) or (b) applies) a tax

9 determined in accordance with the following table:

‘‘If taxable income is: The tax is:

Not over $27,050 .......................... 15% of taxable income.

Over $27,050 but not over

$65,550.

$4,075.50, plus 28% of the excess

over $27,050.

Over $65,550 but not over

$136,750.

$14,823.50, plus 31% of the excess

over $65,550.

Over $136,750 but not over

$297,300.

$36,895.50, plus 36% of the excess

over $136,750.

Over $297,300 ............................... $94,657.50, plus 39.6% of the excess

over $297,300.
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1 ‘‘(d) ESTATES AND TRUSTS.—There is hereby im2 posed on the taxable income of—

3 ‘‘(1) every estate, and

4 ‘‘(2) every trust,

5 taxable under this subsection a tax determined in accord6 ance with the following table:

‘‘If taxable income is: The tax is:

Not over $1,800 ............................ 15% of taxable income.

Over $1,800 but not over $4,250 .. $270, plus 28% of the excess over

$1,800.

Over $4,250 but not over $6,500 .. $956, plus 31% of the excess over

$4,250.

Over $6,500 but not over $8,900 .. $1,653.50, plus 36% of the excess

over $6,500.

Over $8,900 ................................... $2,517.50, plus 39.6% of the excess

over $8,900.’’.

7 (b) INFLATION ADJUSTMENT TO APPLY IN DETER8 MINING RATES FOR 2002.—Subsection (f) of section 1 is

9 amended—

10 (1) by striking ‘‘1993’’ in paragraph (1) and in11 serting ‘‘2001’’,

12 (2) by striking ‘‘1992’’ in paragraph (3)(B) and

13 inserting ‘‘2000’’, and

14 (3) by striking paragraph (7).

15 (c) CONFORMING AMENDMENTS.—

16 (1) The following provisions are each amended

17 by striking ‘‘1992’’ and inserting ‘‘2000’’ each place

18 it appears:

19 (A) Section 25A(h).

20 (B) Section 32(j)(1)(B).
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1 (C) Section 41(e)(5)(C).

2 (D) Section 42(h)(3)(H)(i)(II).

3 (E) Section 59(j)(2)(B).

4 (F) Section 63(c)(4)(B).

5 (G) Section 68(b)(2)(B).

6 (H) Section 132(f)(6)(A)(ii).

7 (I) Section 135(b)(2)(B)(ii).

8 (J) Section 146(d)(2)(B).

9 (K) Section 151(d)(4).

10 (L) Section 220(g)(2).

11 (M) Section 221(g)(1)(B).

12 (N) Section 512(d)(2)(B).

13 (O) Section 513(h)(2)(C)(ii).

14 (P) Section 685(c)(3)(B).

15 (Q) Section 877(a)(2).

16 (R) Section 911(b)(2)(D)(ii)(II).

17 (S) Section 2032A(a)(3)(B).

18 (T) Section 2503(b)(2)(B).

19 (U) Section 2631(c)(2).

20 (V) Section 4001(e)(1)(B).

21 (W) Section 4261(e)(4)(A)(ii).

22 (X) Section 6039F(d).

23 (Y) Section 6323(i)(4)(B).

24 (Z) Section 6334(g)(1)(B).

25 (AA) Section 6601(j)(3)(B).
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1 (BB) Section 7430(c)(1).

2 (2) Subclause (II) of section 42(h)(6)(G)(i) is

3 amended by striking ‘‘1987’’ and inserting ‘‘2000’’.

4 (3) Sections 468B(b)(1), 511(b)(1), 641(a),

5 641(d)(2)(A), and 685(d) are each amended by

6 striking ‘‘section 1(e)’’ each place it appears and in7 serting ‘‘section 1(d)’’.

8 (4) Sections 1(f)(2) and 904(b)(3)(E)(ii) are

9 each amended by striking ‘‘(d), or (e)’’ and inserting

10 ‘‘or (d)’’.

11 (5) Paragraph (1) of section 1(f) is amended by

12 striking ‘‘(d), and (e)’’ and inserting ‘‘and (d)’’.

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

14 this section shall apply to taxable years beginning after

15 December 31, 2000.

16 SEC. 3. ELIMINATION OF MARRIAGE PENALTY IN STAND17 ARD DEDUCTION.

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

19 (relating to standard deduction) is amended—

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

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

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

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

24 (B);
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1 (3) by striking ‘‘in the case of’’ and all that fol2 lows in subparagraph (C) and inserting ‘‘in any

3 other case.’’; and

4 (4) by striking subparagraph (D).

5 (b) TECHNICAL AMENDMENTS.—

6 (1) Subparagraph (B) of section 1(f )(6) is

7 amended by striking ‘‘(other than with’’ and all that

8 follows through ‘‘shall be applied’’ and inserting

9 ‘‘(other than with respect to sections 63(c)(4) and

10 151(d)(4)(A)) shall be applied’’.

11 (2) Paragraph (4) of section 63(c) is amended

12 by adding at the end the following flush sentence:

13 ‘‘The preceding sentence shall not apply to the

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

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

16 this section shall apply to taxable years beginning after

17 December 31, 2000.

18 SEC. 4. MARRIAGE PENALTY RELIEF FOR EARNED INCOME

19 CREDIT.

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

21 (relating to percentages and amounts) is amended—

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

23 inserting ‘‘AMOUNTS.—

24 ‘‘(A) IN GENERAL.—Subject to subpara25 graph (B), the earned’’; and
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1 (2) by adding at the end the following new sub2 paragraph:

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

4 joint return, the phaseout amount determined

5 under subparagraph (A) shall be increased by

6 $2,000.’’.

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

8 section 32( j) (relating to inflation adjustments) is amend9 ed to read as follows:

10 ‘‘(B) the cost-of-living adjustment deter11 mined under section 1(f )(3) for the calendar

12 year in which the taxable year begins,

13 determined—

14 ‘‘(i) in the case of amounts in sub15 sections (b)(2)(A) and (i)(1), by sub16 stituting ‘calendar year 1995’ for ‘calendar

17 year 1992’ in subparagraph (B) of section

18 1(f )(3), and

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

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

21 ‘calendar year 1999’ for ‘calendar year

22 1992’ in subparagraph (B) of section

23 1(f )(3).’’.

24 (c) ROUNDING.—Section 32( j)(2)(A) (relating to

25 rounding) is amended by striking ‘‘subsection (b)(2)’’ and
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1 inserting ‘‘subparagraph (A) of subsection (b)(2) (after

2 being increased under subparagraph (B) thereof )’’.

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

4 this section shall apply to taxable years beginning after

5 December 31, 2000.

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