I
103D CONGRESS
1ST SESSION
H. R. 436
To amend the Internal Revenue Code of 1986 to increase the amount of
the exemption for dependent children under age 18 to $3,500, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 5, 1993
Mr. WOLF (for himself, Mr. KYL, Mr. TALENT, Mr. ACKERMAN, Mr. GOSS,
Mr. ROHRABACHER, Mr. HALL of Texas, Mr. BAKER of Louisiana, Mr.
BARRETT of Nebraska, Mr. BEREUTER, Mr. BUNNING, Mr. CALLAHAN,
Mr. COBLE, Mr. COLEMAN, Mr. COX, Mr. DELAY, Mr. DOOLITTLE, Mr.
DUNCAN, Mr. FRANKS of Connecticut, Mr. GILCHREST, Mr. GINGRICH,
Ms. MOLINARI, Mr. MURPHY, Mr. NEAL of Massachusetts, Mr. NUSSLE,
Mr. PACKARD, Mr. PAXON, Mr. HEFLEY, Mr. HUNTER, Mr. HUTTO, Mr.
HANCOCK, Ms. NORTON, Mr. RAVENEL, Mr. ROTH, Mr. HERGER, Mr.
SHAYS, Mr. SMITH of Oregon, Mr. SMITH of New Jersey, Mr. SPENCE,
Mr. WALSH, Mr. SENSENBRENNER, Mr. GALLEGLY, Mr. HENRY, Mr.
SOLOMON, Mr. INHOFE, Mr. YATES, Mr. HASTERT, Mr. CHAPMAN, Mr.
TAYLOR of North Carolina, Mr. PARKER, Mr. SKEEN, Mr. JOHNSTON of
Florida, Mrs. COLLINS of Michigan, Mr. BARTON of Texas, Mr. BURTON
of Indiana, Mr. CUNNINGHAM, Mr. EMERSON, Mrs. VUCANOVICH, Mr.
RAMSTAD, Mr. HANSEN, Mr. HYDE, Mr. LIGHTFOOT, Mr. LIVINGSTON,
Mr. KILDEE, Mr. MAZZOLI, Mr. OXLEY, Mr. SCHIFF, Mr. MACHTLEY,
Mr. MOORHEAD, Mr. MORAN, Mr. CONYERS, Mr. MYERS of Indiana, Mr.
PETRI, Mr. FAWELL, Ms. MEEK, Mr. UPTON, Mr. OLVER, Mr. CLINGER,
Mr. ZIMMER, Mr. GILLMOR, Mr. GEKAS, Mr. CRAPO, Ms. FOWLER, Mr.
CRAMER, Mr. PORTER, Mr. SMITH
of Texas, Mr. ARMEY, Mr.
SANTORUM, and Mr. DORNAN) 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 increase
the amount of the exemption for dependent children
under age 18 to $3,500, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. STATEMENT OF CONGRESSIONAL FINDINGS.
The Congress hereby finds that—
(1) the erosion of the personal exemption over
the past several decades has exacted an inordinate
financial penalty on families with children,
(2) the simplest and most effective way to rein-
vest and strengthen families is by allowing families
to keep more of their own hard-earned money,
(3) an increase in the dependent deduction
would begin to ease the growing financial strain on
families, and mark a return to tax fairness for fami-
lies,
(4) if the personal exemption had kept pace
with inflation, increases in per capita income and in-
creases in family costs, it would be approximately
$8,000 today, and
(5) the dependent deduction should be raised to
$3,500 with a goal to reach the appropriate level by
the year 2000.
SEC. 2. INCREASE IN PERSONAL EXEMPTION FOR CERTAIN
DEPENDENT CHILDREN.
(a) GENERAL RULE.—Paragraph (1) of section
151(d) of the Internal Revenue Code of 1986 (defining
exemption amount) is amended to read as follows:
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘exemption
amount’ means $2,000 (or, in the case of an exemp-
tion under subsection (c) for a child who has not at-
tained age 18 before the close of the calendar year
in which the taxable year begins, $3,500).’’
(b) CONFORMING AMENDMENTS.—
(1) Subparagraph (A) of section 151(d)(3) of
such Code is amended by striking ‘‘the exemption
amount’’ and inserting ‘‘each dollar amount in effect
under paragraph (1) (after any adjustment under
paragraph (4))’’.
(2) Subparagraph (A) of section 151(d)(4) of
such Code is amended—
(A) by striking ‘‘the dollar amount’’ and
inserting ‘‘each dollar amount’’, and
(B) by adding at the end thereof the fol-
lowing new sentence: ‘‘In the case of the $3,500
amount contained in paragraph (1), the preced-
ing sentence shall be applied by substituting