‘‘(1) every estate, and
‘‘(2) every trust,
taxable under this subsection a tax determined in accord-
ance with the following table:
‘‘If taxable income is:
The tax is:
Not over $1,750 ............................
15% of taxable income.
Over $1,750 but not over $4,050 ..
$262.50, plus 28% of the excess over
$1,750.
Over $4,050 but not over $6,200 ..
$906.50, plus 31% of the excess over
$4,050.
Over $6,200 but not over $8,450 ..
$1,573, plus 36% of the excess over
$6,200.
Over $8,450 ...................................
$2,383, plus 39.6% of the excess over
$8,450.’’.
(b) INFLATION ADJUSTMENT TO APPLY IN DETER-
MINING RATES FOR 2000.—Subsection (f) of section 1 is
amended—
(1) by striking ‘‘1993’’ in paragraph (1) and in-
serting ‘‘1999’’,
(2) by striking ‘‘1992’’ in paragraph (3)(B) and
inserting ‘‘1998’’, and
(3) by striking paragraph (7).
(c) CONFORMING AMENDMENTS.—
(1) The following provisions are each amended
by striking ‘‘1992’’ and inserting ‘‘1998’’ each place
it appears:
(A) Section 25A(h).
(B) Section 32(j)(1)(B).
(C) Section 41(e)(5)(C).
(D) Section 59(j)(2)(B).
(E) Section 63(c)(4)(B).
(F) Section 68(b)(2)(B).
(G) Section 135(b)(2)(B)(ii).
(H) Section 151(d)(4).
(I) Section 220(g)(2).
(J) Section 221(g)(1)(B).
(K) Section 512(d)(2)(B).
(L) Section 513(h)(2)(C)(ii).
(M) Section 685(c)(3)(B).
(N) Section 877(a)(2).
(O) Section 911(b)(2)(D)(ii)(II).
(P) Section 2032A(a)(3)(B).
(Q) Section 2503(b)(2)(B).
(R) Section 2631(c)(1)(B).
(S) Section 4001(e)(1)(B).
(T) Section 4261(e)(4)(A)(ii).
(U) Section 6039F(d).
(V) Section 6323(i)(4)(B).
(W) Section 6601(j)(3)(B).
(X) Section 7430(c)(1).
(2) Subclause (II) of section 42(h)(6)(G)(i) is
amended by striking ‘‘1987’’ and inserting ‘‘1998’’.
(3) Subparagraph (B) of section 132(f)(6) is
amended by inserting before the period ‘‘, deter-
mined by substituting ‘calendar year 1992’ for ‘cal-
endar year 1998’ in subparagraph (B) thereof ’’.
(4) Sections 468B(b)(1), 511(b)(1), 641(a),
641(d)(2)(A), and 685(d) are each amended by
striking ‘‘section 1(e)’’ each place it appears and in-
serting ‘‘section 1(d)’’.
(5) Sections 1(f)(2) and 904(b)(3)(E)(ii) are
each amended by striking ‘‘(d), or (e)’’ and inserting
‘‘or (d)’’.
(6) Paragraph (1) of section 1(f) is amended by
striking ‘‘(d), and (e)’’ and inserting ‘‘and (d)’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
SEC. 3. ELIMINATION OF MARRIAGE PENALTY IN STAND-
ARD DEDUCTION.
(a) IN GENERAL.—Paragraph (2) of section 63(c)
(relating to standard deduction) is amended to read as fol-
lows:
‘‘(2) BASIC STANDARD DEDUCTION.—For pur-
poses of paragraph (1), the basic standard deduction
is—
‘‘(A) $8,600 in the case of—
‘‘(i) a joint return, or
‘‘(ii) a surviving spouse (as defined in
section 2(a)),
‘‘(B) $6,350 in the case of a head of
household (as defined in section 2(b)), or
‘‘(C) $4,300 in any other case.’’
(b) TECHNICAL AMENDMENTS.—
(1) Paragraph (4) of section 63(c) is amended
to read as follows:
‘‘(4) ADJUSTMENTS
FOR
INFLATION.—In the
case of any taxable year beginning in a calendar
year after 1999, each dollar amount contained in
paragraph (2) or (5) or subsection (f) shall be in-
creased by an amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar
year in which the taxable year begins.’’
(2) Subparagraph (A) of section 63(c)(5) is
amended by striking ‘‘$500’’ and inserting ‘‘$700’’.
(3) Subsection (f) of section 63 is amended by
striking ‘‘$600’’ each place it appears and inserting
‘‘$850’’ and by striking ‘‘$750’’ in paragraph (3)
and inserting ‘‘$1,050’’.
(4) Subparagraph (B) of section 1(f)(6) is
amended by striking ‘‘subsection (c)(4) of section 63
(as it applies to subsections (c)(5)(A) and (f) of such
section)’’ and inserting ‘‘section 63(c)(4)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
Æ