I
107TH CONGRESS
1ST SESSION
H. R. 275
To amend the Internal Revenue Code of 1986 to repeal the adjusted gross
income limitations on itemized deductions, the personal exemption deduc-
tion, and the child tax credit and to repeal the alternative minimum
tax on individuals.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 30, 2001
Mr. SAM JOHNSON of Texas (for himself, Mr. CRANE, Mr. GOSS, Mr. ARMEY,
and Mr. TERRY) 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 repeal
the adjusted gross income limitations on itemized deduc-
tions, the personal exemption deduction, and the child
tax credit and to repeal the alternative minimum tax
on individuals.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Family Values Tax Relief Act of 2001’’.
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
SEC. 3. REPEAL OF PHASEOUT OF PERSONAL EXEMPTIONS.
(a) IN GENERAL.—Subsection (d) of section 151 (re-
lating to exemption amount) is amended by striking para-
graph (3).
(b) TECHNICAL AMENDMENTS.—
(1) Paragraph (6) of section 1(f) is amended—
(A) by striking ‘‘section 151(d)(4)’’ in sub-
paragraph 
(A) 
and 
inserting 
‘‘section
151(d)(3)’’, and
(B) by striking ‘‘section 151(d)(4)(A)’’ in
subparagraph 
(B) 
and 
inserting 
‘‘section
151(d)(3)’’.
(2) Paragraph (4) of section 151(d) is amended
to read as follows:
‘‘(3) INFLATION ADJUSTMENT.—In the case of
any taxable year beginning in a calendar year after
1989, the dollar amount contained in paragraph (1)
shall be increased 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, by sub-
stituting ‘calendar year 1988’ for ‘calendar year
1992’ in subparagraph (B) thereof.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 4. REPEAL OF ADJUSTED GROSS INCOME LIMITATION
IN CHILD TAX CREDIT.
(a) IN GENERAL.—Section 24 (relating to child tax
credit) is amended by striking subsection (b) and by redes-
ignating subsections (c) through (f) as subsections (b)
through (e), respectively.
(b) CONFORMING AMENDMENT.—Clause (ii) of sec-
tion 32(n)(1)(B) is amended by striking ‘‘section 24(d)’’
and inserting ‘‘section 24(c)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 5. REPEAL OF ALTERNATIVE MINIMUM TAX ON INDI-
VIDUALS.
(a) IN GENERAL.—Subsection (a) of section 55 (re-
lating to alternative minimum tax imposed) is amended
by adding at the end the following new flush sentence:
‘‘Except in the case of a corporation, no tax shall be im-
posed by this section for any taxable year beginning after
December 31, 2000, and the tentative minimum tax of any
taxpayer other than a corporation shall be zero for pur-
poses of this title.’’
(b) CONFORMING AMENDMENTS.—
(1) Subparagraph (B) of section 1(g)(7) is
amended by adding ‘‘and’’ at the end of clause (i),
by striking ‘‘, and’’ at the end of clause (ii) and in-
serting a period, and by striking clause (iii).
(2) Section 2(d) is amended by striking ‘‘sec-
tions 1 and 55’’ and inserting ‘‘section 1’’.
(3) Section 5(a) is amended by striking para-
graph (4).
(4) Subsection (c) of section 24, as redesig-
nated by section 4, is amended by striking para-
graph (2) and by redesignating paragraph (3) as
paragraph (2).
(5)(A) Subsection (a) of section 26 is amended
to read as follows:
‘‘(a) LIMITATION BASED ON AMOUNT OF TAX.—The
aggregate amount of credits allowed by this subpart for
the taxable year shall not exceed the taxpayer’s regular
tax liability for the taxable year.’’
(B) Subsection (c) of section 26 is amended by
inserting before the period ‘‘; except that such
amount shall be treated as being zero in the case of
a taxpayer other than a corporation.’’
(6) Paragraph (6) of section 29(b) is amended
to read as follows:
‘‘(6) APPLICATION
WITH
OTHER
CREDITS.—
The credit allowed by subsection (a) for any taxable
year shall not exceed the regular tax for the taxable
year reduced by the sum of the credits allowable
under subpart A and section 27. In the case of a
corporation, the limitation under the preceding sen-
tence shall be reduced (but not below zero) by the
tentative minimum tax for the taxable year.’’.
(7) Paragraph (3) of section 30(b) is amended
to read as follows:
‘‘(3) APPLICATION
WITH
OTHER
CREDITS.—
The credit allowed by subsection (a) for any taxable
year shall not exceed the regular tax for the taxable
year reduced by the sum of the credits allowable
under subpart A and sections 27 and 29. In the case
of a corporation, the limitation under the preceding
sentence shall be reduced (but not below zero) by the
tentative minimum tax for the taxable year.’’.
(8) Section 32 is amended by striking sub-
section (h).
(9) Subsection (d) of section 53(d) is amended
to read as follows:
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) NET MINIMUM TAX.—The term ‘net min-
imum tax’ means the tax imposed by section 55 in-