II

106TH CONGRESS

1ST SESSION S. 274

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

taxable income for the 15 percent rate bracket.

IN THE SENATE OF THE UNITED STATES

JANUARY 21, 1999

Mr. COVERDELL (for himself, Mr. MCCAIN, and Mr. TORRICELLI) 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 increase

the maximum taxable income for the 15 percent rate bracket.

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 ‘‘Middle Class Tax Re5 lief Act of 1999’’.

6 SEC. 2. INCREASE IN MAXIMUM TAXABLE INCOME FOR 15

7 PERCENT RATE BRACKET.

8 Section 1(f) of the Internal Revenue Code of 1986

9 (relating to adjustments in tax tables so that inflation will

10 not result in tax increases) is amended—
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•S 274 IS

1 (1) in paragraph (2)—

2 (A) by redesignating subparagraphs (B)

3 and (C) as subparagraphs (C) and (D),

4 (B) by inserting after subparagraph (A)

5 the following:

6 ‘‘(B) in the case of the tables contained in

7 subsections (a), (b), (c), and (d), by increasing

8 the maximum taxable income level for the 15

9 percent rate bracket and the minimum taxable

10 income level for the 28 percent rate bracket

11 otherwise determined under subparagraph (A)

12 for taxable years beginning in any calendar year

13 after 1999, by the applicable dollar amount for

14 such calendar year,’’, and

15 (C) by striking ‘‘subparagraph (A)’’ in

16 subparagraph (C) (as so redesignated) and in17 serting ‘‘subparagraphs (A) and (B)’’, and

18 (2) by adding at the end the following:

19 ‘‘(8) APPLICABLE DOLLAR AMOUNT.—For pur20 poses of paragraph (2)(B), the applicable dollar

21 amount for any calendar year shall be determined as

22 follows:

23 ‘‘(A) JOINT RETURNS AND SURVIVING

24 SPOUSES.—In the case of the table contained in

25 subsection (a)—
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Applicable

‘‘Calendar year: Dollar Amount:

2000 ......................................................................................... $2,000

2001 ......................................................................................... $4,000

2002 ......................................................................................... $6,000

2003 ......................................................................................... $8,000

2004 and thereafter ................................................................. $10,000.

1 ‘‘(B) OTHER TABLES.—In the case of the

2 table contained in subsection (b), (c), or (d)—

Applicable

‘‘Calendar year: Dollar Amount:

2000 ......................................................................................... $1,000

2001 ......................................................................................... $2,000

2002 ......................................................................................... $3,000

2003 ......................................................................................... $4,000

2004 and thereafter ................................................................. $5,000.’’

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