I 
109TH CONGRESS 
2D SESSION 
H. R. 5601 
To amend the Internal Revenue Code of 1986 to strengthen the earned 
income tax credit. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 13, 2006 
Mr. PASCRELL (for himself, Mr. DOYLE, Mr. CLEAVER, Ms. NORTON, Mr. 
PAYNE, and Mr. WYNN) 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 strengthen 
the earned income tax credit. 
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 ‘‘Strengthen the Earned 
Income Tax Credit Act of 2006’’. 
SEC. 2. STRENGTHEN THE EARNED INCOME TAX CREDIT. 
(a) REDUCTION IN MARRIAGE PENALTY.— 
(1) IN GENERAL.—Section 32(b)(2)(B) of the 
Internal Revenue Code of 1986 (relating to joint re-
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turns) is amended by striking clauses (ii) and (iii) 
and inserting the following new clauses: 
‘‘(ii) $2,000 in the case of taxable 
years beginning in 2005, 
‘‘(iii) $3,000 in the case of taxable 
years beginning in 2006, 
‘‘(iv) $3,500 in the case of taxable 
years beginning in 2007, 
‘‘(v) $4,000 in the case of taxable 
years beginning in 2008, 
‘‘(vi) $4,500 in the case of taxable 
years beginning in 2009, and 
‘‘(vii) $5,000 in the case of taxable 
years beginning after 2009.’’. 
(2) 
INFLATION
ADJUSTMENT.—Section 
32(j)(1)(B)(ii) of such Code is amended— 
(A) by striking ‘‘$3,000’’ and inserting 
‘‘$5,000’’, and 
(B) by striking ‘‘2007’’ and inserting 
‘‘2009’’. 
(3) PROVISIONS NOT SUBJECT TO SUNSET.— 
Title IX of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 (relating to sunset provi-
sions of such Act) shall not apply to section 303(a) 
of such Act. 
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(b) INCREASE IN CREDIT PERCENTAGE FOR FAMI-
LIES WITH 3 OR MORE CHILDREN.—The table contained 
in section 32(b)(1)(A) of such Code (relating to percent-
ages) is amended— 
(1) by striking ‘‘2 or more qualifying children’’ 
in the second row and inserting ‘‘2 qualifying chil-
dren’’, and(2) by inserting after the second row the 
following new item: 
‘‘3 or more qualifying children .....................
45 .........................................
21.06’’. 
(c) REDUCTION IN PHASEOUT OF CREDIT FOR INDI-
VIDUALS WITH NO CHILDREN.—The table contained in 
section 32(b)(1)(A) of such Code is amended by striking 
‘‘7.65’’ in the third column of the third row and inserting 
‘‘3.82’’. 
(d) PERMANENT EXTENSION
OF SPECIAL RULE 
TREATING COMBAT PAY AS EARNED INCOME.— 
(1) IN
GENERAL.—Clause (vi) of section 
32(c)(2)(B) of such Code (relating to earned in-
come) is amended to read as follows: 
‘‘(vi) a taxpayer may elect to treat 
amounts excluded from gross income by 
reason of section 112 as earned income.’’. 
(2) PROVISION
NOT
SUBJECT
TO
SUNSET.— 
Section 105 of the Working Families Tax Relief Act 
of 2004 (relating to application of EGTRRA sunset 
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to this title) shall not apply to section 104(b) of 
such Act. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
SEC. 3. IMPOSITION OF INDIVIDUAL INCOME TAX SUR-
CHARGE. 
(a) IMPOSITION OF TAX.—Section 1 of the Internal 
Revenue Code of 1986 (relating to imposition of tax on 
individuals) is amended by adding at the end the following 
new subsection: 
‘‘(j) ADDITIONAL INCOME TAX.— 
‘‘(1) IN GENERAL.—If the adjusted gross in-
come of the taxpayer exceeds the threshold amount, 
the tax imposed by this section (determined without 
regard to this subsection) shall be increased by an 
amount equal to 0.5 percent of so much of the ad-
justed gross income as exceeds the threshold 
amount. 
‘‘(2) THRESHOLD AMOUNTS.—For purposes of 
this subsection, the term ‘threshold amount’ means 
$1,000,000. 
‘‘(3) TAX
NOT
TO
APPLY
TO
ESTATES
AND 
TRUSTS.—This subsection shall not apply to an es-
tate or trust.’’. 
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(b) COORDINATION WITH MINIMUM TAX.—Section 
55(c) of such Code (defining regular tax) is amended by 
redesignating paragraph (3) as paragraph (4) and by in-
serting after paragraph (2) the following new paragraph: 
‘‘(3) COORDINATION
WITH
MINIMUM
TAX.— 
Solely for purposes of this section, section 1(j) shall 
not apply in computing the regular tax.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
(d) SECTION 15 NOT TO APPLY.—The amendments 
made by this section 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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