II

105TH CONGRESS

2D SESSION S. 1999

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.

IN THE SENATE OF THE UNITED STATES

APRIL 28, 1998

Mrs. HUTCHISON (for herself, Mr. FAIRCLOTH, Mr. ASCHCROFT, and Mr.

MACK) 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.

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; AMENDMENT OF 1986 CODE.

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

5 ‘‘Marriage Tax Penalty Elimination Act of 1998’’.

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend-
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1 ment or repeal is expressed in terms of an amendment

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

3 shall be considered to be made to a section or other provi4 sion of the Internal Revenue Code of 1986.

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

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

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

8 Code of 1986 .

9 SEC. 2. ELIMINATION OF MARRIAGE PENALTY IN INDIVID10 UAL INCOME TAX RATES.

11 (a) GENERAL RULE.—Section 1 (relating to tax im12 posed) is amended by striking subsections (a) through (e)

13 and inserting the following:

14 ‘‘(a) MARRIED INDIVIDUALS FILING JOINT RETURNS

15 AND SURVIVING SPOUSES.—There is hereby imposed on

16 the taxable income of—

17 ‘‘(1) every married individual (as defined in sec18 tion 7703) who makes a single return jointly with

19 his spouse under section 6013, and

20 ‘‘(2) every surviving spouse (as defined in sec21 tion 2(a)),

22 a tax determined in accordance with the following table:

‘‘If taxable income is: The tax is:

Not over $50,700 .......................... 15% of taxable income.

Over $50,700 but not over

$122,800.

$7,605, plus 28% of the excess over

$50,700.

Over $122,800 but not over

$256,200.

$27,793, plus 31% of the excess over

$122,800.
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‘‘If taxable income is: The tax is:

Over $256,200 but not over

$556,900.

$69,147, plus 36% of the excess over

$256,200.

Over $556,900 ............................... $177,399, plus 39.6% of the excess

over $556,900.

1 ‘‘(b) HEADS OF HOUSEHOLDS.—There is hereby im2 posed on the taxable income of every head of a household

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

4 with the following table:

‘‘If taxable income is: The tax is:

Not over $33,950 .......................... 15% of taxable income.

Over $33,950 but not over

$87,700.

$5,092.50, plus 28% of the excess

over $33,950.

Over $87,700 but not over

$142,000.

$20,142.50, plus 31% of the excess

over $87,700.

Over $142,000 but not over

$278,450.

$36,975.50, plus 36% of the excess

over $142,000.

Over $278,450 ............................... $86,097.50, plus 39.6% of the excess

over $278,450.

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

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

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

8 determined in accordance with the following table:

‘‘If taxable income is: The tax is:

Not over $25,350 .......................... 15% of taxable income.

Over $25,350 but not over

$61,400.

$3,802.50, plus 28% of the excess

over $25,350.

Over $61,400 but not over

$128,100.

$13,896.50, plus 31% of the excess

over $61,400.

Over $128,100 but not over

$278,450.

$34,573.50, plus 36% of the excess

over $128,100.

Over $278,450 ............................... $88,699.50, plus 39.6% of the excess

over $278,450.

9 ‘‘(d) ESTATES AND TRUSTS.—There is hereby im10 posed on the taxable income of—

11 ‘‘(1) every estate, and

12 ‘‘(2) every trust,
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1 taxable under this subsection a tax determined in accord2 ance with the following table:

‘‘If taxable income is: The tax is:

Not over $1,700 ............................ 15% of taxable income.

Over $1,700 but not over $4,000 .. $255, plus 28% of the excess over

$1,700.

Over $4,000 but not over $6,100 .. $899, plus 31% of the excess over

$4,000.

Over $6,100 but not over $8,350 .. $1,550, plus 36% of the excess over

$6,100.

Over $8,350 ................................... $2,360, plus 39.6% of the excess over

$8,350.’’.

3 (b) INFLATION ADJUSTMENT TO APPLY IN DETER4 MINING RATES FOR 1999.—Subsection (f) of section 1 is

5 amended—

6 (1) by striking ‘‘1993’’ in paragraph (1) and in7 serting ‘‘1998’’,

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

9 inserting ‘‘1997’’, and

10 (3) by striking paragraph (7).

11 (c) CONFORMING AMENDMENTS.—

12 (1) The following provisions are each amended

13 by striking ‘‘1992’’ and inserting ‘‘1997’’ each place

14 it appears:

15 (A) Section 25A(h).

16 (B) Section 32(j)(1)(B).

17 (C) Section 41(e)(5)(C).

18 (D) Section 68(b)(2)(B).

19 (E) Section 135(b)(2)(B)(ii).

20 (F) Section 151(d)(4).
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1 (G) Section 221(g)(1)(B).

2 (H) Section 512(d)(2)(B).

3 (I) Section 513(h)(2)(C)(ii).

4 (J) Section 877(a)(2).

5 (K) Section 911(b)(2)(D)(ii)(II).

6 (L) Section 4001(e)(1)(B).

7 (M) Section 4261(e)(4)(A)(ii).

8 (N) Section 6039F(d).

9 (O) Section 6334(g)(1)(B).

10 (P) Section 7430(c)(1).

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

12 amended by striking ‘‘1987’’ and inserting ‘‘1997’’.

13 (3) Subparagraph (B) of section 59(j)(2) is

14 amended by striking ‘‘, determined by substituting

15 ‘1997’ for ‘1992’ in subparagraph (B) thereof’’.

16 (4) Subparagraph (B) of section 132(f)(6) is

17 amended by inserting before the period ‘‘, deter18 mined by substituting ‘calendar year 1992’ for ‘cal19 endar year 1997’ in subparagraph (B) thereof’’.

20 (5) Paragraph (2) of section 220(g) of such

21 Code is amended by striking ‘‘by substituting ‘cal22 endar year 1997’ for ‘calendar year 1992’ in sub23 paragraph (B) thereof’’.

24 (6) Subparagraph (B) of section 685(c)(3) is

25 amended by striking ‘‘, by substituting ‘calendar
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1 year 1997’ for ‘calendar year 1992’ in subparagraph

2 (B) thereof’’.

3 (7) Subparagraph (B) of section 2032A(a)(3) is

4 amended by striking ‘‘by substituting ‘calendar year

5 1997’ for ‘calendar year 1992’ in subparagraph (B)

6 thereof’’.

7 (8) Subparagraph (B) of section 2503(b)(2) is

8 amended by striking ‘‘by substituting ‘calendar year

9 1997’ for ‘calendar year 1992’ in subparagraph (B)

10 thereof’’.

11 (9) Paragraph (2) of section 2631(c) is amend12 ed by striking ‘‘by substituting ‘calendar year 1997’

13 for ‘calendar year 1992’ in subparagraph (B) there14 of’’.

15 (10) Subparagraph (B) of section 6601(j)(3) is

16 amended by striking ‘‘by substituting ‘calendar year

17 1997’ for ‘calendar year 1992’ in subparagraph (B)

18 thereof’’.

19 (11) Sections 468B(b)(1), 511(b)(1), 641(a),

20 641(d)(2)(A), and 685(d) are each amended by

21 striking ‘‘section 1(e)’’ each place it appears and in22 serting ‘‘section 1(d)’’.

23 (12) Sections 1(f)(2) and 904(b)(3)(E)(ii) are

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

25 ‘‘or (d)’’.
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1 (13) Paragraph (1) of section 1(f) is amended

2 by striking ‘‘(d), and (e)’’ and inserting ‘‘and (d)’’.

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

4 this section shall apply to taxable years beginning after

5 December 31, 1998.

6 SEC. 3. ELIMINATION OF MARRIAGE PENALTY IN STAND7 ARD DEDUCTION.

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

9 (relating to standard deduction) is amended to read as fol10 lows:

11 ‘‘(2) BASIC STANDARD DEDUCTION.—For pur12 poses of paragraph (1), the basic standard deduction

13 is—

14 ‘‘(A) $8,500 in the case of—

15 ‘‘(i) a joint return, or

16 ‘‘(ii) a surviving spouse (as defined in

17 section 2(a)),

18 ‘‘(B) $6,250 in the case of a head of

19 household (as defined in section 2(b)), or

20 ‘‘(C) $4,250 in any other case.’’

21 (b) TECHNICAL AMENDMENTS.—

22 (1) Paragraph (4) of section 63(c) is amended

23 to read as follows:

24 ‘‘(4) ADJUSTMENTS FOR INFLATION.—In the

25 case of any taxable year beginning in a calendar
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1 year after 1998, each dollar amount contained in

2 paragraph (2) or (5) or subsection (f) shall be in3 creased by an amount equal to—

4 ‘‘(A) such dollar amount, multiplied by

5 ‘‘(B) the cost-of-living adjustment deter6 mined under section 1(f)(3) for the calendar

7 year in which the taxable year begins.’’

8 (2) Subparagraph (A) of section 63(c)(5) is

9 amended by striking ‘‘$500’’ and inserting ‘‘$700’’.

10 (3) Subsection (f) of section 63 is amended by

11 striking ‘‘$600’’ each place it appears and inserting

12 ‘‘$850’’ and by striking ‘‘$750’’ in paragraph (3)

13 and inserting ‘‘$1,050’’.

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

15 amended by striking ‘‘subsection (c)(4) of section 63

16 (as it applies to subsections (c)(5)(A) and (f) of such

17 section)’’ and inserting ‘‘section 63(c)(4)’’.

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

19 this section shall apply to taxable years beginning after

20 December 31, 1998.

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