I 
109TH CONGRESS 
2D SESSION 
H. R. 5807 
To amend the Internal Revenue Code of 1986 to provide middle class tax 
relief, impose a surtax for families with incomes over $1,000,000, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 13, 2006 
Mr. WEINER (for himself and Mr. MEEKS of New York) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
middle class tax relief, impose a surtax for families with 
incomes over $1,000,000, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Middle Class Tax Relief Act of 2006’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—TAX RELIEF FOR MIDDLE CLASS FAMILIES 
Sec. 101. Middle class families tax relief credits. 
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Sec. 102. Double the child tax credit for middle class families. 
Sec. 103. Eliminate the middle class surcharge. 
TITLE II—SURTAX FOR FAMILIES WITH INCOMES OVER $1 
MILLION 
Sec. 201. Surtax for families with incomes over $1 million. 
TITLE I—TAX RELIEF FOR 
MIDDLE CLASS FAMILIES 
SEC. 101. MIDDLE CLASS FAMILIES TAX RELIEF CREDITS. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to nonrefundable personal credits) is 
amended by inserting before section 26 the following new 
section: 
‘‘SEC. 25E. MIDDLE CLASS FAMILIES TAX RELIEF CREDIT. 
‘‘(a) 10 PERCENT TAX REDUCTION FOR THE MID-
DLE CLASS.— 
‘‘(1) IN GENERAL.—In the case of any natural 
person, there shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an 
amount equal to 10 percent of the amount of such 
tax. 
‘‘(2) INCOME LIMITATION.—The amount allow-
able as a credit under paragraph (1) for any taxable 
year shall be reduced (but not below zero) by an 
amount which bears the same ratio to the amount 
so allowable (determined without regard to this 
paragraph) as— 
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‘‘(A) the amount (if any) by which the tax-
payer’s adjusted gross income exceeds $75,000 
($150,000 in the case of a joint return), bears 
to 
‘‘(B) $5,000 ($10,000 in the case of a 
joint return). 
‘‘(b) ZERO TAX BRACKET FOR THE POOR.— 
‘‘(1) IN GENERAL.—In the case of any natural 
person, there shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an 
amount equal to the excess of— 
‘‘(A) the sum of the taxpayer’s regular tax 
liability for the taxable year and the tax im-
posed by section 55(a) for the taxable year, 
over 
‘‘(B) the sum of the credits allowed under 
this part (other than this subsection) for the 
taxable year. 
‘‘(2) INCOME LIMITATION.—The amount allow-
able as a credit under paragraph (1) for any taxable 
year shall be reduced (but not below zero) by an 
amount which bears the same ratio to the amount 
so allowable (determined without regard to this 
paragraph) as— 
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‘‘(A) the amount (if any) by which the tax-
payer’s adjusted gross income exceeds $12,500 
($25,000 in the case of a joint return), bears to 
‘‘(B) $2,500 ($5,000 in the case of a joint 
return).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
of subpart A of part IV of subchapter A of chapter 1 of 
such Code is amended by inserting before the item relating 
to section 26 the following new item: 
‘‘Sec. 25E. Middle class families tax relief credits.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 102. DOUBLE THE CHILD TAX CREDIT FOR MIDDLE 
CLASS FAMILIES. 
(a) IN GENERAL.—Subsection (a) of section 24 of the 
Internal Revenue Code of 1986 (relating to child tax cred-
it) is amended to read as follows: 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN GENERAL.—There shall be allowed as a 
credit against the tax imposed by this chapter for 
the taxable year with respect to each qualifying child 
of the taxpayer an amount equal to the sum of— 
‘‘(A) the basic credit for the taxable year, 
plus 
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‘‘(B) the additional credit for the taxable 
year. 
‘‘(2) BASIC CREDIT.—For purposes of this sec-
tion, the term ‘basic credit’ means— 
‘‘(A) $1,000 in the case of any taxable 
year beginning before January 1, 2011, and 
‘‘(B) $500 in the case of any other taxable 
year. 
‘‘(3) ADDITIONAL
CREDIT.—For purposes of 
this section, the term ‘additional credit’ means— 
‘‘(A) $1,000 in the case of any taxable 
year beginning before January 1, 2011, and 
‘‘(B) $500 in the case of any other taxable 
year.’’. 
(b) LIMITATION ON ADDITIONAL CREDIT BASED ON 
ADJUSTED GROSS INCOME.—Subsection (b) of section 24 
of such Code is amended by adding at the end the fol-
lowing new paragraphs: 
‘‘(4) LIMITATION
ON
ADDITIONAL
CREDIT 
BASED ON ADJUSTED GROSS INCOME.—The amount 
of the additional credit determined under subsection 
(a)(3) shall be reduced (but not below zero) by an 
amount which bears the same ratio to such amount 
(determined without regard to this paragraph) as— 
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‘‘(A) the amount (if any) by which the tax-
payer’s adjusted gross income exceeds $75,000 
($150,000 in the case of a joint return), bears 
to 
‘‘(B) $5,000 ($10,000 in the case of a 
joint return).’’. 
(c) CONFORMING AMENDMENTS.—Paragraph (1) of 
section 24(b) of such Code is amended— 
(1) by striking ‘‘the credit allowable under sub-
section (a)’’ and inserting ‘‘the basic credit deter-
mined under subsection (a)(2)’’, and 
(2) by inserting ‘‘ON
BASIC
CREDIT’’ after 
‘‘LIMITATION’’ in the heading thereof. 
(d) COORDINATION WITH EGTRRA SUNSET.—Sec-
tion 901 of the Economic Growth and Tax Relief Rec-
onciliation Act of 2001 shall not apply to the amendment 
made by section 201(a) of such Act. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 103. ELIMINATE THE MIDDLE CLASS SURCHARGE. 
(a) IN GENERAL.—Section 55 of the Internal Rev-
enue Code of 1986 (relating to alternative minimum tax 
imposed) is amended by adding at the end the following 
new subsection: 
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‘‘(f) EXEMPTION FOR INDIVIDUALS FOR TAXABLE 
YEARS BEGINNING IN 2007.—For any taxable year begin-
ning in 2007, in the case of an individual— 
‘‘(1) IN GENERAL.—The tentative minimum tax 
of the taxpayer shall be zero if the adjusted gross 
income of the taxpayer (as determined for purposes 
of the regular tax) is equal to or less than the 
threshold amount. 
‘‘(2) PHASEIN OF LIABILITY ABOVE EXEMPTION 
LEVEL.—In the case of a taxpayer whose adjusted 
gross income exceeds the threshold amount but does 
not exceed $112,500 ($225,000 in the case of a joint 
return), the tax imposed by subsection (a) shall be 
the amount which bears the same ratio to such tax 
(determined without regard to this subsection) as— 
‘‘(A) the excess of— 
‘‘(i) the adjusted gross income of the 
taxpayer (as determined for purposes of 
the regular tax), over 
‘‘(ii) the threshold amount, bears to 
‘‘(B) $12,500 ($25,000 in the case of a 
joint return). 
‘‘(3) THRESHOLD AMOUNT.—For purposes of 
this paragraph, the term ‘threshold amount’ means 
$100,000 ($200,000 in the case of a joint return). 
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‘‘(4) ESTATES AND TRUSTS.—This subsection 
shall not apply to any estate or trust.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
TITLE II—SURTAX FOR FAMILIES 
WITH INCOMES OVER $1 MIL-
LION 
SEC. 201. SURTAX FOR FAMILIES WITH INCOMES OVER $1 
MILLION. 
(a) GENERAL RULE.—Section 1 of the Internal Rev-
enue Code of 1986 (relating to imposition of tax on indi-
viduals) is amended by adding at the end the following 
new subsection: 
‘‘(j) SURTAX FOR FAMILIES WITH INCOMES OVER 
$1,000,000.— 
‘‘(1) IN GENERAL.—If the adjusted gross in-
come of a taxpayer exceeds $500,000 ($1,000,000, 
in the case of a joint return), the tax imposed by 
this section (determined without regard to this sub-
section) shall be increased by an amount determined 
in accordance with the following tables: 
‘‘(A) JOINT RETURNS.—In the case of a 
joint return: 
‘‘If taxable income is: 
The tax is: 
Over $1,000,000 but not over 
$1,000,000,000.
7% of the excess over $1,000,000 
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‘‘If taxable income is: 
The tax is: 
Over $1,000,000,000 .....................
$69,930,000, plus 10% of the excess 
over $1,000,000,000 
‘‘(B) OTHER
RETURNS.—In the case of 
any other return: 
‘‘If taxable income is: 
The tax is: 
Over 
$500,000 
but 
not 
over 
$500,000,000.
7% of the excess over $500,000 
Over $500,000,000 ........................
$34,965,000, plus 10% of the excess 
over $500,000,000 
‘‘(2) TAX
NOT
TO
APPLY
TO
ESTATES
AND 
TRUSTS.—This subsection shall not apply to an es-
tate or trust. 
‘‘(3) SPECIAL RULE.—For purposes of section 
55, the amount of the regular tax shall be deter-
mined without regard to this subsection.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
(c) SECTION 15 NOT TO APPLY.—The amendment 
made by subsection (a) shall not be treated as a change 
in a rate of tax for purposes of section 15 of the Internal 
Revenue Code of 1986. 
Æ 
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