I
106TH CONGRESS
2D SESSION
H. R. 4810
To provide for reconciliation pursuant to section 103(a)(1) of the concurrent
resolution on the budget for fiscal year 2001.
IN THE HOUSE OF REPRESENTATIVES
JULY 10, 2000
Mr. ARCHER introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To provide for reconciliation pursuant to section 103(a)(1)
of the concurrent resolution on the budget for fiscal
year 2001.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE, ETC.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Marriage Tax Penalty Relief Reconciliation Act of
2000’’.
(b) SECTION 15 NOT TO APPLY.—No amendment
made by this Act shall be treated as a change in a rate
of tax for purposes of section 15 of the Internal Revenue
Code of 1986.
SEC. 2. ELIMINATION OF MARRIAGE PENALTY IN STAND-
ARD DEDUCTION.
(a) IN GENERAL.—Paragraph (2) of section 63(c) of
the Internal Revenue Code of 1986 (relating to standard
deduction) is amended—
(1) by striking ‘‘$5,000’’ in subparagraph (A)
and inserting ‘‘200 percent of the dollar amount in
effect under subparagraph (C) for the taxable year’’,
(2) by adding ‘‘or’’ at the end of subparagraph
(B),
(3) by striking ‘‘in the case of’’ and all that fol-
lows in subparagraph (C) and inserting ‘‘in any
other case.’’, and
(4) by striking subparagraph (D).
(b) TECHNICAL AMENDMENTS.—
(1) Subparagraph (B) of section 1(f )(6) of such
Code is amended by striking ‘‘(other than with’’ and
all that follows through ‘‘shall be applied’’ and in-
serting ‘‘(other than with respect to sections
63(c)(4) and 151(d)(4)(A)) shall be applied’’.
(2) Paragraph (4) of section 63(c) of such Code
is amended by adding at the end the following flush
sentence:
‘‘The preceding sentence shall not apply to the
amount referred to in paragraph (2)(A).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 3. PHASEOUT OF MARRIAGE PENALTY IN 15-PERCENT
BRACKET; REPEAL OF REDUCTION OF RE-
FUNDABLE TAX CREDITS.
(a) IN GENERAL.—Subsection (f ) of section 1 of the
Internal Revenue Code of 1986 (relating to adjustments
in tax tables so that inflation will not result in tax in-
creases) is amended by adding at the end the following
new paragraph:
‘‘(8) PHASEOUT OF MARRIAGE PENALTY IN 15-
PERCENT BRACKET.—
‘‘(A) IN GENERAL.—With respect to tax-
able years beginning after December 31, 2002,
in prescribing the tables under paragraph (1)—
‘‘(i) the maximum taxable income in
the lowest rate bracket in the table con-
tained in subsection (a) (and the minimum
taxable income in the next higher taxable
income bracket in such table) shall be the
applicable percentage of the maximum tax-
able income in the lowest rate bracket in
the table contained in subsection (c) (after
any other adjustment under this sub-
section), and
‘‘(ii) the comparable taxable income
amounts in the table contained in sub-
section (d) shall be 1⁄2 of the amounts de-
termined under clause (i).
‘‘(B) 
APPLICABLE
PERCENTAGE.—For
purposes of subparagraph (A), the applicable
percentage shall be determined in accordance
with the following table:
‘‘For taxable years beginning
The applicable
in calendar year—
percentage is—
2003 .............................................................................
170.3
2004 .............................................................................
173.8
2005 .............................................................................
183.5
2006 .............................................................................
184.3
2007 .............................................................................
187.9
2008 and thereafter .....................................................
200.0.
‘‘(C) ROUNDING.—If any amount deter-
mined under subparagraph (A)(i) is not a mul-
tiple of $50, such amount shall be rounded to
the next lowest multiple of $50.’’.
(b) REPEAL OF REDUCTION OF REFUNDABLE TAX
CREDITS.—
(1) Subsection (d) of section 24 of such Code
is amended by striking paragraph (2) and redesig-
nating paragraph (3) as paragraph (2).
(2) Section 32 of such Code is amended by
striking subsection (h).
(c) TECHNICAL AMENDMENTS.—
(1) Subparagraph (A) of section 1(f )(2) of such
Code is amended by inserting ‘‘except as provided in
paragraph (8),’’ before ‘‘by increasing’’.
(2) The heading for subsection (f ) of section 1
of such Code is amended by inserting ‘‘PHASEOUT
OF MARRIAGE PENALTY IN 15-PERCENT BRACKET;’’
before ‘‘ADJUSTMENTS’’.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided by para-
graph (2), the amendments made by this section
shall apply to taxable years beginning after Decem-
ber 31, 2002.
(2) REPEAL OF REDUCTION OF REFUNDABLE
TAX
CREDITS.—The amendments made by sub-
section (b) shall apply to taxable years beginning
after December 31, 2001.
SEC. 4. MARRIAGE PENALTY RELIEF FOR EARNED INCOME
CREDIT.
(a) IN GENERAL.—Paragraph (2) of section 32(b) of
the Internal Revenue Code of 1986 (relating to percent-
ages and amounts) is amended—
(1) by striking ‘‘AMOUNTS.—The earned’’ and
inserting ‘‘AMOUNTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the earned’’, and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) JOINT RETURNS.—In the case of a
joint return, the phaseout amount determined
under subparagraph (A) shall be increased by
$2,000.’’.
(b) INFLATION ADJUSTMENT.—Paragraph (1)(B) of
section 32( j) of such Code (relating to inflation adjust-
ments) is amended to read as follows:
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f )(3) for the calendar
year in which the taxable year begins,
determined—
‘‘(i) in the case of amounts in sub-
sections (b)(2)(A) and (i)(1), by sub-
stituting ‘calendar year 1995’ for ‘calendar
year 1992’ in subparagraph (B) thereof,
and
‘‘(ii) in the case of the $2,000 amount
in subsection (b)(2)(B), by substituting
‘calendar year 2000’ for ‘calendar year
1992’ in subparagraph (B) of such section
1.’’.
(c) ROUNDING.—Section 32( j)(2)(A) of such Code
(relating to rounding) is amended by striking ‘‘subsection
(b)(2)’’ and inserting ‘‘subsection (b)(2)(A) (after being
increased under subparagraph (B) thereof)’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
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