II 

★(Star Print) 

108TH CONGRESS 

2D SESSION S. 2376

To amend the Internal Revenue Code of 1986 to repeal the scheduled reductions in the child tax credit, marriage penalty relief, and 10-percent 

rate bracket, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 4, 2004

Mr. BUNNING (for himself, Mr. MILLER, Mr. FRIST, Mr. GRAHAM of South 

Carolina, and Mrs. HUTCHISON) 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 repeal 

the scheduled reductions in the child tax credit, marriage 

penalty relief, and 10-percent rate bracket, 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,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Working Family Tax 

5 Relief Act of 2004’’. 
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1 SEC. 2. REPEAL OF SCHEDULED REDUCTIONS IN CHILD 

2 TAX CREDIT, MARRIAGE PENALTY RELIEF, 

3 AND 10-PERCENT RATE BRACKET. 

4 (a) CHILD TAX CREDIT.—Subsection (a) of section 

5 24 of the Internal Revenue Code of 1986 (relating to child 

6 tax credit) is amended to read as follows: 

7 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al8 lowed as a credit against the tax imposed by this chapter 

9 for the taxable year with respect to each qualifying child 

10 of the taxpayer an amount equal to $1,000.’’. 

11 (b) MARRIAGE PENALTY RELIEF IN STANDARD DE12 DUCTION.— 

13 (1) IN GENERAL.—Paragraph (2) of section 

14 63(c) of the Internal Revenue Code of 1986 (relat15 ing to basic standard deduction) is amended to read 

16 as follows: 

17 ‘‘(2) BASIC STANDARD DEDUCTION.—For pur18 poses of paragraph (1), the basic standard deduction 

19 is— 

20 ‘‘(A) 200 percent of the dollar amount in 

21 effect under subparagraph (C) for the taxable 

22 year in the case of— 

23 ‘‘(i) a joint return, or 

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

25 section 2(a)), 
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1 ‘‘(B) $4,400 in the case of a head of 

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

3 ‘‘(C) $3,000 in any other case.’’. 

4 (2) CONFORMING AMENDMENTS.— 

5 (A) Section 63(c)(4) of such Code is 

6 amended by striking ‘‘(2)(D)’’ each place it oc7 curs and inserting ‘‘(2)(C)’’. 

8 (B) Section 63(c) of such Code is amended 

9 by striking paragraph (7). 

10 (c) MARRIAGE PENALTY RELIEF IN 15-PERCENT IN11 COME TAX BRACKET.—Paragraph (8) of section 1(f) of 

12 the Internal Revenue Code of 1986 is amended to read 

13 as follows: 

14 ‘‘(8) ELIMINATION OF MARRIAGE PENALTY IN

15 15-PERCENT BRACKET.—With respect to taxable 

16 years beginning after December 31, 2004, in pre17 scribing the tables under paragraph (1)— 

18 ‘‘(A) the maximum taxable income in the 

19 15-percent rate bracket in the table contained 

20 in subsection (a) (and the minimum taxable in21 come in the next higher taxable income bracket 

22 in such table) shall be 200 percent of the max23 imum taxable income in the 15-percent rate 

24 bracket in the table contained in subsection (c) 
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1 (after any other adjustment under this sub2 section), and 

3 ‘‘(B) the comparable taxable income 

4 amounts in the table contained in subsection 

(d) shall be 1 5 ⁄2 of the amounts determined 

6 under subparagraph (A).’’. 

7 (d) 10-PERCENT RATE BRACKET.— 

8 (1) IN GENERAL.—Clause (i) of section 

9 1(i)(1)(B) of the Internal Revenue Code of 1986 is 

10 amended by striking ‘‘($12,000 in the case of tax11 able years beginning after December 31, 2004, and 

12 before January 1, 2008)’’. 

13 (2) INFLATION ADJUSTMENT.—Subparagraph 

14 (C) of section 1(i)(1) of such Code is amended to 

15 read as follows: 

16 ‘‘(C) INFLATION ADJUSTMENT.—In pre17 scribing the tables under subsection (f) which 

18 apply with respect to taxable years beginning in 

19 calendar years after 2003— 

20 ‘‘(i) the cost-of-living adjustment shall 

21 be determined under subsection (f)(3) by 

22 substituting ‘2002’ for ‘1992’ in subpara23 graph (B) thereof, and 
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1 ‘‘(ii) the adjustments under clause (i) 

2 shall not apply to the amount referred to 

3 in subparagraph (B)(iii). 

4 If any amount after adjustment under the pre5 ceding sentence is not a multiple of $50, such 

6 amount shall be rounded to the next lowest 

7 multiple of $50.’’. 

8 (e) PROVISIONS MADE PERMANENT.—Title IX of the 

9 Economic Growth and Tax Relief Reconciliation Act of 

10 2001 (relating to sunset of provisions of such Act) shall 

11 not apply to— 

12 (1) section 1(i)(1) of the Internal Revenue Code 

13 of 1986 as added by subsection (a) of section 101 

14 of such Act, 

15 (2) paragraphs (1) and (7) of section 101(c) of 

16 such Act, 

17 (3) section 201(a) of such Act, and 

18 (4) title III of such Act. 

19 (f) EFFECTIVE DATES.—The amendments made by 

20 this section shall apply to taxable years beginning after 

21 December 31, 2004. 

22 SEC. 3. EXTENSION OF MINIMUM TAX RELIEF TO INDIVID23 UALS. 

24 (a) IN GENERAL.—Subparagraphs (A) and (B) of 

25 section 55(d)(1) of the Internal Revenue Code of 1986 (re-
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1 lating to exemption amount for taxpayers other than cor2 porations) are each amended by striking ‘‘2003 and 2004’’ 

3 and inserting ‘‘2003, 2004, and 2005’’. 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2004.

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