II 

110TH CONGRESS 

1ST SESSION S. 1333 

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

income tax credit. 

IN THE SENATE OF THE UNITED STATES 

MAY 8, 2007 

Mr. KERRY 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 2007’’. 

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 re10 turns) is amended— 

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1 (A) by striking ‘‘, 2006, and 2007’’ in 

2 clause (ii) and inserting ‘‘and 2006’’, and 

3 (B) by striking clause (iii) and inserting 

4 the following new clauses: 

5 ‘‘(iii) $3,500 in the case of taxable 

6 years beginning in 2007, 

7 ‘‘(iv) $4,000 in the case of taxable 

8 years beginning in 2008, 

9 ‘‘(v) $4,500 in the case of taxable 

10 years beginning in 2009, and 

11 ‘‘(vi) $5,000 in the case of taxable 

12 years beginning after 2009.’’. 

13 (2) INFLATION ADJUSTMENT.—Section 

14 32(j)(1)(B)(ii) of such Code is amended— 

15 (A) by striking ‘‘$3,000 amount in sub16 section (b)(2)(B)(iii)’’ and inserting ‘‘$5,000 

17 amount in subsection (b)(2)(B)(vi)’’, and 

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

19 ‘‘2009’’. 

20 (3) PROVISIONS NOT SUBJECT TO SUNSET.— 

21 Title IX of the Economic Growth and Tax Relief 

22 Reconciliation Act of 2001 (relating to sunset provi23 sions of such Act) shall not apply to section 303(a) 

24 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) CREDIT INCREASE AND REDUCTION IN PHASE11 OUT FOR INDIVIDUALS WITH NO CHILDREN.—The table 

12 contained in section 32(b)(1)(A) of such Code is amend13 ed— 

14 (1) by striking ‘‘7.65’’ in the second column of 

15 the third row and inserting ‘‘15.3’’, and 

16 (2) by striking ‘‘7.65’’ in the third column of 

17 the third row and inserting ‘‘15.3’’. 

18 (d) PERMANENT EXTENSION OF SPECIAL RULE

19 TREATING COMBAT PAY AS EARNED INCOME.— 

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

21 32(c)(2)(B) of such Code (relating to earned in22 come) is amended to read as follows: 

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

2 amounts excluded from gross income by 

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

4 (2) PROVISION NOT SUBJECT TO SUNSET.— 

5 Section 105 of the Working Families Tax Relief Act 

6 of 2004 (relating to application of EGTRRA sunset 

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

8 such Act. 

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

10 this section shall apply to taxable years beginning after 

11 December 31, 2006. 

Æ 

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