I
105TH CONGRESS
1ST SESSION
H. R. 2593
To amend the Internal Revenue Code of 1986 to restore the deduction
for two-earner married couples.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 1, 1997
Mr. HERGER (for himself, Mrs. KENNELLY of Connecticut, Mr. WELLER, Mr.
CRANE, Mr. SHAW, Mrs. JOHNSON of Connecticut, Mr. BUNNING, Mr.
HOUGHTON, Mr. MCCRERY, Mr. CAMP, Mr. NUSSLE, Mr. SAM JOHNSON
of Texas, Ms. DUNN, Mr. COLLINS, Mr. PORTMAN, Mr. ENGLISH of
Pennsylvania, Mr. ENSIGN, Mr. CHRISTENSEN, Mr. WATKINS, Mr.
HAYWORTH, Mr. NEAL of Massachusetts, and Mr. COYNE) 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 restore
the deduction for two-earner married couples.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Marriage Penalty Re-
lief Act’’.
SEC. 2. RESTORATION OF DEDUCTION FOR TWO-EARNER
MARRIED COUPLES.
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
additional itemized deductions for individuals) is amended
by redesignating section 222 as section 223 and by insert-
ing after section 221 the following new section:
‘‘SEC. 222. DEDUCTION FOR TWO-EARNER MARRIED COU-
PLES.
‘‘(a) DEDUCTION ALLOWED.—In the case of a joint
return for the taxable year, there shall be allowed as a
deduction an amount equal to 10 percent of the lesser of—
‘‘(1) $30,000, or
‘‘(2) the qualified earned income of the spouse
with the lower qualified earned income for such tax-
able year.
‘‘(b) QUALIFIED EARNED INCOME.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified earned income’ means an
amount equal to the excess of—
‘‘(A) the earned income of the spouse for
the taxable year, over
‘‘(B) an amount equal to the sum of the
deductions described in paragraphs (1), (2),
(6), (7), and (12) of section 62(a) to the extent
such deductions are properly allocable to or
chargeable against earned income described in
subparagraph (A).
The amount of qualified earned income shall be de-
termined without regard to any community property
laws.
‘‘(2) EARNED INCOME.—For purposes of para-
graph (1), the term ‘earned income’ means income
which is earned income within the meaning of sec-
tion 911(d)(2) or 401(c)(2)(C), except that—
‘‘(A) such term shall not include any
amount—
‘‘(i) not includible in gross income,
‘‘(ii) received as a pension or annuity,
‘‘(iii) paid or distributed out of an in-
dividual retirement plan (within the mean-
ing of section 7701(a)(37)),
‘‘(iv) received as deferred compensa-
tion, or
‘‘(v) received for services performed
by an individual in the employ of his
spouse (within the meaning of section
3121(b)(3)(A)), and
‘‘(B) section 911(d)(2)(B) shall be applied
without regard to the phrase ‘not in excess of
30 percent of his share of the net profits of
such trade or business’.
‘‘(d) DEDUCTION DISALLOWED
FOR INDIVIDUAL
CLAIMING BENEFITS OF SECTION 911 OR 931.—No de-
duction shall be allowed under this section for any taxable
year if either spouse claims the benefits of section 911
or 931 for such taxable year.’’
(b) DEDUCTION ALLOWED WHETHER OR NOT TAX-
PAYER ITEMIZES OTHER DEDUCTIONS.—Subsection (a)
of section 62 of such Code (defining adjusted gross in-
come) is amended by inserting after paragraph (17) the
following new paragraph:
‘‘(18) DEDUCTION FOR TWO-EARNER MARRIED
COUPLES.—The deduction allowed by section 222.’’
(c) CONFORMING AMENDMENTS.—
(1) Subparagraph (A) of section 86(b)(2) of
such Code is amended by inserting ‘‘222,’’ after
‘‘137,’’.
(2) Subsection (f) of section 86 of such Code is
amended by striking ‘‘and’’ at the end of paragraph
(3), by redesignating paragraph (4) as paragraph
(5), and by inserting after paragraph (3) the follow-
ing new paragraph:
‘‘(4) section 222(b)(2) (defining earned in-
come), and’’.
(3) The table of sections for part VII of sub-
chapter B of chapter 1 of such Code is amended by
striking the item relating to section 222 and insert-
ing the following:
‘‘Sec. 222. Deduction for two-earner married couples.
‘‘Sec. 223. Cross reference.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
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