II 

109TH CONGRESS 

1ST SESSION S. 1824 

To amend the Internal Revenue Code of 1986 to strengthen the earned 

income tax credit. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 5, 2005 

Mr. KERRY (for himself and Mr. SCHUMER) 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 strengthen 

the earned income tax credit. 

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. 

4 This Act may be cited as the ‘‘Strengthen the Earned 

5 Income Tax Credit Act of 2005’’. 

6 SEC. 2. STRENGTHEN THE EARNED INCOME TAX CREDIT. 

7 (a) REDUCTION IN MARRIAGE PENALTY.— 

8 (1) IN GENERAL.—Section 32(b)(2)(B) of the 

9 Internal Revenue Code of 1986 (relating to joint re-
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1 turns) is amended by striking clauses (ii) and (iii) 

2 and inserting the following new clauses: 

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

4 years beginning in 2005, 

5 ‘‘(iii) $3,000 in the case of taxable 

6 years beginning in 2006, 

7 ‘‘(iv) $3,500 in the case of taxable 

8 years beginning in 2007, 

9 ‘‘(v) $4,000 in the case of taxable 

10 years beginning in 2008, 

11 ‘‘(vi) $4,500 in the case of taxable 

12 years beginning in 2009, and 

13 ‘‘(vii) $5,000 in the case of taxable 

14 years beginning after 2009.’’. 

15 (2) INFLATION ADJUSTMENT.—Section 

16 32(j)(1)(B)(ii) of such Code is amended— 

17 (A) by striking ‘‘$3,000’’ and inserting 

18 ‘‘$5,000’’, and 

19 (B) by striking ‘‘2007’’ and inserting 

20 ‘‘2009’’. 

21 (3) PROVISIONS NOT SUBJECT TO SUNSET.— 

22 Title IX of the Economic Growth and Tax Relief 

23 Reconciliation Act of 2001 (relating to sunset provi24 sions of such Act) shall not apply to section 303(a) 

25 of such Act. 
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1 (b) INCREASE IN CREDIT PERCENTAGE FOR FAMI2 LIES WITH 3 OR MORE CHILDREN.—The table contained 

3 in section 32(b)(1)(A) of such Code (relating to percent4 ages) is amended— 

5 (1) by striking ‘‘2 or more qualifying children’’ 

6 in the second row and inserting ‘‘2 qualifying chil7 dren’’, and 

8 (2) by inserting after the second row the fol9 lowing new item: 

‘‘3 or more qualifying children ..................... 45 ......................................... 21.06’’. 

10 (c) REDUCTION IN PHASEOUT OF CREDIT FOR INDI11 VIDUALS WITH NO CHILDREN.—The table contained in 

12 section 32(b)(1)(A) of such Code is amended by striking 

13 ‘‘7.65’’ in the third column of the third row and inserting 

14 ‘‘3.82’’. 

15 (d) PERMANENT EXTENSION OF SPECIAL RULE

16 TREATING COMBAT PAY AS EARNED INCOME.— 

17 (1) IN GENERAL.—Clause (vi) of section 

18 32(c)(2)(B) of such Code (relating to earned in19 come) is amended to read as follows: 

20 ‘‘(iv) a taxpayer may elect to treat 

21 amounts excluded from gross income by 

22 reason of section 112 as earned income.’’. 

23 (2) PROVISION NOT SUBJECT TO SUNSET.— 

24 Section 105 of the Working Families Tax Relief Act 
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1 of 2004 (relating to application of EGTRRA sunset 

2 to this title) shall not apply to section 104(b) of 

3 such Act. 

4 (e) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2005. 

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