108TH CONGRESS

2D SESSION H. R. 4181

AN ACT

To amend the Internal Revenue Code of 1986 to

permanently extend the marriage penalty reliefprovided under the Economic Growth and TaxRelief Reconciliation Act of 2001.

108TH CONGRESS

2D SESSION H. R. 4181

AN ACT

To amend the Internal Revenue Code of 1986 to permanently

extend the marriage penalty relief provided under the

Economic Growth and Tax Relief Reconciliation Act of

2001.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. EXTENSION OF INCREASED STANDARD DEDUC2 TION FOR MARRIED TAXPAYERS FILING

3 JOINT RETURNS.

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

5 the Internal Revenue Code of 1986 (relating to basic

6 standard deduction) is amended to read as follows:

7 ‘‘(2) BASIC STANDARD DEDUCTION.—For pur8 poses of paragraph (1), the basic standard deduction

9 is—

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

11 effect under subparagraph (C) for the taxable

12 year in the case of—

13 ‘‘(i) a joint return, or

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

15 section 2(a)),

16 ‘‘(B) $4,400 in the case of a head of

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

18 ‘‘(C) $3,000 in any other case.’’.

19 (b) CONFORMING AMENDMENTS.—

20 (1) Section 63(c)(4) of such Code is amended

21 by striking ‘‘(2)(D)’’ each place it occurs and insert22 ing ‘‘(2)(C)’’.

23 (2) Section 63(c) of such Code is amended by

24 striking paragraph (7).
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years beginning after

3 December 31, 2004.

4 SEC. 2. EXTENSION OF 15-PERCENT INDIVIDUAL INCOME

5 TAX RATE BRACKET EXPANSION FOR MAR6 RIED TAXPAYERS FILING JOINT RETURNS.

7 (a) IN GENERAL.—Paragraph (8) of section 1(f ) of

8 the Internal Revenue Code of 1986 (relating to phaseout

9 of marriage penalty in 15-percent bracket) is amended to

10 read as follows:

11 ‘‘(8) ELIMINATION OF MARRIAGE PENALTY IN

12 15-PERCENT BRACKET.—With respect to taxable

13 years beginning after December 31, 2004, in pre14 scribing the tables under paragraph (1)—

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

16 15 percent rate bracket in the table contained

17 in subsection (a) (and the minimum taxable in18 come in the next higher taxable income bracket

19 in such table) shall be 200 percent of the max20 imum taxable income in the 15-percent rate

21 bracket in the table contained in subsection (c)

22 (after any other adjustment under this sub23 section), and

24 ‘‘(B) the comparable taxable income

25 amounts in the table contained in subsection
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(d) shall be 1 1 ⁄2 of the amounts determined

2 under subparagraph (A).’’.

3 (b) CONFORMING AMENDMENT.—The heading for

4 subsection (f ) of section 1 of such Code is amended by

5 striking ‘‘PHASEOUT’’ and inserting ‘‘ELIMINATION’’.

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

7 this section shall apply to taxable years beginning after

8 December 31, 2004.

9 SEC. 3. REPEAL OF SUNSET.

10 Title IX of the Economic Growth and Tax Relief Rec11 onciliation Act of 2001 shall not apply to the amendments

12 made by title III of such Act.

Passed the House of Representatives April 28, 2004.

Attest:

Clerk.