I
106TH CONGRESS
1ST SESSION
H. R. 1453
To amend the Internal Revenue Code of 1986 to restore the deduction
for 2-earner married couples.
IN THE HOUSE OF REPRESENTATIVES
APRIL 15, 1999
Mr. LAMPSON 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 2-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 Tax Penalty
Relief Act of 1999’’.
SEC. 2. RESTORATION OF DEDUCTION FOR 2-EARNER MAR-
RIED 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 2-EARNER MARRIED COUPLES.
‘‘(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 the applicable percentage
of the qualified earned income of the spouse with the lower
qualified earned income for such taxable year.
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘applicable per-
centage’ means 20 percent reduced (but not below
zero) by 1 percentage point for each $1,000 (or frac-
tion thereof) by which the taxpayer’s modified ad-
justed gross income for the taxable year exceeds
$50,000.
‘‘(2) TRANSITION RULE FOR 1999 AND 2000.—In
the case of taxable years beginning in 1999 or 2000,
paragraph (1) shall be applied by substituting ‘10
percent’ for ‘20 percent’ and ‘0.5 percentage point’
for ‘1 percentage point’.
‘‘(3) MODIFIED
ADJUSTED
GROSS
INCOME.—
The term ‘modified adjusted gross income’ means
adjusted gross income determined—
‘‘(A) without regard to this section and
sections 911, 931, and 933, and
‘‘(B) after application of sections 86, 135,
137, 219, 221, and 469.
‘‘(c) 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), (12), and (16) 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.
‘‘(e) COST-OF-LIVING ADJUSTMENT.—In the case of
any taxable year beginning in a calendar year after 1999,
the $50,000 amount contained in subsection (b)(1) shall
be increased by an amount equal to the product of—
‘‘(1) such dollar amount, and
(d) CONFORMING AMENDMENTS.—
(1) 
Sections 
86(b)(2)(A), 
135(c)(4)(A),
137(b)(3)(A), and 219(g)(3)(A)(ii) of such Code are
each amended by inserting ‘‘222,’’ after ‘‘221,’’.
(2) Clause (i) of section 221(b)(2)(C) of such
Code is amended by inserting ‘‘222,’’ before ‘‘911’’.
(3) Clause (iii) of section 469(i)(3)(E) of such
Code is amended by striking ‘‘and 221’’ and insert-
ing ‘‘, 221, and 222’’.
(4) 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 2-earner married couples.
‘‘Sec. 223. Cross reference.’’
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1998.
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