I
107TH CONGRESS
1ST SESSION
H. R. 456
To amend the Internal Revenue Code of 1986 to eliminate the marriage
penalty in the income tax rates and standard deduction and to reduce
individual income tax rates.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 6, 2001
Mr. SAM JOHNSON of Texas 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 eliminate
the marriage penalty in the income tax rates and stand-
ard deduction and to reduce individual income tax rates.
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
‘‘Tax Relief and Marriage Penalty Elimination Act of
2001’’.
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
(c) 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 .
TITLE I—ELIMINATION OF
MARRIAGE PENALTY
SEC. 101. ELIMINATION OF MARRIAGE PENALTY IN INDI-
VIDUAL INCOME TAX RATES.
(a) GENERAL RULE.—Section 1 (relating to tax im-
posed) is amended by striking subsections (a) through (e)
and inserting the following:
‘‘(a) MARRIED INDIVIDUALS FILING JOINT RETURNS
AND SURVIVING SPOUSES.—There is hereby imposed on
the taxable income of—
‘‘(1) every married individual (as defined in sec-
tion 7703) who makes a single return jointly with
his spouse under section 6013, and
‘‘(2) every surviving spouse (as defined in sec-
tion 2(a)),
a tax determined in accordance with the following table:
‘‘If taxable income is:
The tax is:
Not over $54,100 ..........................
15% of taxable income.
Over 
$54,100 
but 
not 
over
$131,100.
$8,115, plus 28% of the excess over
$54,100.
‘‘If taxable income is:
The tax is:
Over 
$131,100 
but 
not 
over
$273,500.
$29,675, plus 31% of the excess over
$131,100.
Over 
$273,500 
but 
not 
over
$594,700.
$73,819, plus 36% of the excess over
$273,500.
Over $594,700................ ...............
$189,451, plus 39.6% of the excess
over $594,700.
‘‘(b) HEADS OF HOUSEHOLDS.—There is hereby im-
posed on the taxable income of every head of a household
(as defined in section 2(b)) a tax determined in accordance
with the following table:
‘‘If taxable income is:
The tax is:
Not over $43,280 ..........................
15% of taxable income.
Over 
$43,280 
but 
not 
over
$104,880.
$6,492, plus 28% of the excess over
$43,280.
Over 
$104,880 
but 
not 
over
$218,800.
$23,740, plus 31% of the excess over
$104,880.
Over 
$218,800 
but 
not 
over
$475,760.
$59,055.20, plus 36% of the excess
over $218,800
Over $475,760 ...............................
$151,560.80, plus 39.6% of the ex-
cess over $475,760
‘‘(c) OTHER INDIVIDUALS.—There is hereby imposed
on the taxable income of every individual (other than an
individual to whom subsection (a) or (b) applies) a tax
determined in accordance with the following table:
‘‘If taxable income is:
The tax is:
Not over $27,050 ..........................
15% of taxable income.
Over 
$27,050 
but 
not 
over
$65,550.
$4,057.50, plus 28% of the excess
over $27,050.
Over 
$65,550 
but 
not 
over
$136,750.
$14,837.50, plus 31% of the excess
over $65,550.
Over 
$136,750 
but 
not 
over
$297,350.
$36,909.50, plus 36% of the excess
over $136,750.
Over $297,350 ...............................
$94,725.50, plus 39.6% of the excess
over $297,350.
‘‘(d) ESTATES AND TRUSTS.—There is hereby im-
posed on the taxable income of—
‘‘(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 $1,800 ............................
15% of taxable income.
Over $1,800 but not over $4,250 ..
$270, plus 28% of the excess over
$1,800.
Over $4,250 but not over $6,500 ..
$956, plus 31% of the excess over
$4,250.
Over $6,500 but not over $8,900 ..
$1,653.50, plus 36% of the excess
over $6,500.
Over $8,900 ...................................
$2,517.50, plus 39.6% of the excess
over $8,900.’’.
(b) INFLATION ADJUSTMENT TO APPLY IN DETER-
MINING RATES FOR 2002.—Subsection (f) of section 1 is
amended—
(1) by striking ‘‘1993’’ in paragraph (1) and in-
serting ‘‘2001’’,
(2) by striking ‘‘1992’’ in paragraph (3)(B) and
inserting ‘‘2000’’, and
(3) by striking paragraph (7).
(c) CONFORMING AMENDMENTS.—
(1) The following provisions are each amended
by striking ‘‘1992’’ and inserting ‘‘2000’’ 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(e)(4)(B).
(F) Section 68(b)(2)(B).
(G) Section 132(f)(6)(A)(ii).
(H) Section 135(b)(2)(B)(ii).
(I) Section 151(d)(4).
(J) Section 220(g)(2).
(K) Section 221(g)(1)(B).
(L) Section 512(d)(2)(B).
(M) Section 513(h)(2)(C)(ii).
(N) Section 685(c)(3)(B).
(O) Section 877(a)(2).
(P) Section 911(b)(2)(D)(ii)(II).
(Q) Section 2032A(a)(3)(B).
(R) Section 2503(b)(2)(B).
(S) Section 2631(c)(1)(B).
(T) Section 4001(e)(1)(B).
(U) Section 4261(e)(4)(A)(ii).
(V) Section 6039F(d).
(W) Section 6323(i)(4)(B).
(X) Section 6334(g)(1)(B).
(Y) Section 6601(j)(3)(B).
(Z) Section 7430(c)(1).
(2) Subclause (II) of section 42(h)(6)(G)(i) is
amended by striking ‘‘1987’’ and inserting ‘‘2000’’.
(3) 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)’’.
(4) Sections 1(f)(2) and 904(b)(3)(E)(ii) are
each amended by striking ‘‘(d), or (e)’’ and inserting
‘‘or (d)’’.
(5) 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, 2000.
SEC. 102. 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) twice the dollar amount in effect
under subparagraph (C) for the taxable year in
the case of—
‘‘(i) a joint return, or
‘‘(ii) a surviving spouse (as defined in
section 2(a)),
‘‘(B) $6,650 in the case of a head of
household (as defined in section 2(b)), or
‘‘(C) $4,550 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 2001, 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 ‘‘$750’’.
(3) Subsection (f) of section 63 is amended by
striking ‘‘$600’’ each place it appears and inserting
‘‘$900’’ and by striking ‘‘$750’’ in paragraph (3)
and inserting ‘‘$1,100’’.
(4) Subparagraph (B) of section 1(f)(6) is
amended by striking ‘‘(other than with’’ and all that
follows through ‘‘shall be applied’’ and inserting
‘‘(other than with respect to sections 63(c)(4) and
151(d)(4)(A)) shall be applied’’.
(5) Paragraph (4) of section 63(c) 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.
TITLE II—INDIVIDUAL INCOME
TAX RATE REDUCTIONS
SEC. 201. INDIVIDUAL INCOME TAX RATE REDUCTIONS.
(a) RATES AFTER 2004.—Section 1 (relating to tax
imposed) is amended by striking subsections (a) through
(d) and inserting the following:
‘‘(a) MARRIED INDIVIDUALS FILING JOINT RETURNS
AND SURVIVING SPOUSES.—There is hereby imposed on
the taxable income of—
‘‘(1) every married individual (as defined in sec-
tion 7703) who makes a single return jointly with
his spouse under section 6013, and
‘‘(2) every surviving spouse (as defined in sec-
tion 2(a)),
a tax determined in accordance with the following table:
‘‘If taxable income is:
The tax is:
Not over $12,600 ..........................
10% of taxable income.
‘‘If taxable income is:
The tax is:
Over 
$12,600 
but 
not 
over
$54,100.
$1,260, plus 15% of the excess over
$12,600.
Over 
$54,100 
but 
not 
over
$273,500.
$7,485, plus 25% of the excess over
$54,100.
Over $273,500 ...............................
$62,335, plus 33% of the excess over
$273,500.
‘‘(b) HEADS OF HOUSEHOLDS.—There is hereby im-
posed on the taxable income of every head of a household
(as defined in section 2(b)) a tax determined in accordance
with the following table:
‘‘If taxable income is:
The tax is:
Not over $10,800 ..........................
10% of taxable income.
Over 
$10,800 
but 
not 
over
$43,280.
$1,080, plus 15% of the excess over
$10,800
Over 
$43,280 
but 
not 
over
$218,800.
$5,952, plus 25% of the excess over
$43,280
Over $218,800 ...............................
$49,832, plus 33% of the excess over
$218,800
‘‘(c) OTHER INDIVIDUALS.—There is hereby imposed
on the taxable income of every individual (other than an
individual to whom subsection (a) or (b) applies) a tax
determined in accordance with the following table:
‘‘If taxable income is:
The tax is:
Not over $6,300 ............................
10% of taxable income.
Over $6,300 but not over $27,050
$630, plus 15% of the excess over
$6,300.
Over 
$27,050 
but 
not 
over
$136,750.
$3,742.50, plus 25% of the excess
over $27,050.
Over $136,750 ...............................
$31,167.50, plus 33% of the excess
over $136,750.
‘‘(d) ESTATES AND TRUSTS.—There is hereby im-
posed on the taxable income of—
‘‘(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 $1,800 ............................
15% of taxable income.
Over $1,800 but not over $6,500 ..
$270, plus 25% of the excess over
$1,800.
Over $6,500 ...................................
$1,445, plus 33% of the excess over
$6,500.’’
(b) PHASEIN OF RATES.—Section 1 is amended by
inserting after subsection (d) the following new subsection:
‘‘(e) PHASEIN OF 2005 RATES.—
‘‘(1) IN GENERAL.—In the case of any taxable
year beginning after December 31, 2000, and before
January 1, 2005, the tax determined under sub-
section (a), (b), or (c) shall be the tax imposed by
such subsection determined without regard to the
amendments made by the Tax Relief and Marriage
Penalty Elimination Act of 2001 reduced by—
‘‘(A) 40 percent of the aggregate tax re-
duction in the case of taxable years beginning
during 2001 or 2002,
‘‘(B) 60 percent of the aggregate tax re-
duction in the case of taxable years beginning
during 2003, and
‘‘(C) 80 percent of the aggregate tax re-
duction in the case of taxable years beginning
during 2004.
The Secretary shall adjust the tables prescribed
under subsection (f) to carry out the reductions
under the preceding sentence.
‘‘(2) AGGREGATE TAX REDUCTION.—For pur-
poses of paragraph (1), the aggregate tax reduction
for any taxable year shall be the amount equal to
the excess of—
‘‘(A) the tax which would be determined
for such taxable year without regard to the Tax
Relief and Marriage Penalty Elimination Act of
2001, over
‘‘(B) the tax which would be determined
for such taxable year without regard to this
subsection.’’
(c) TECHNICAL AMENDMENTS.—
(1) Section 1(g)(7)(B)(ii)(II) is amended by
striking ‘‘15 percent’’ and inserting ‘‘10 percent’’.
(2) Section 1(h) is amended—
(A) by striking ‘‘28 percent’’ both places it
appears 
in 
paragraphs 
(1)(A)(ii)(I) 
and
(1)(B)(i) and inserting ‘‘15 percent’’, and
(B) by striking paragraph (13).
(3) Section 531 is amended by striking ‘‘39.6
percent’’ and inserting ‘‘33 percent’’.
(4) Section 541 is amended by striking ‘‘39.6
percent’’ and inserting ‘‘33 percent’’.
(5) Section 3402(p)(1)(B) is amended by strik-
ing ‘‘7, 15, 28, or 31 percent’’ and inserting ‘‘5, 10,
15, or 25 percent’’.
(6) Section 3402(p)(2) is amended by striking
‘‘15 percent’’ and inserting ‘‘10 percent’’.
(7) Section 3402(q)(1) is amended by striking
‘‘28 percent’’ and inserting ‘‘15 percent’’.
(8) Section 3402(r)(3) is amended by striking
‘‘31 percent’’ and inserting ‘‘25 percent’’.
(9) Section 3406(a)(1) is amended by striking
‘‘31 percent’’ and inserting ‘‘25 percent’’.
(10) The Secretary of the Treasury may pre-
scribe percentages which shall apply in lieu of the
percentages specified in the amendments made by
this subsection in order to coordinate those percent-
ages with the percentages specified in the tables pre-
scribed under the last sentence of section 1(e)(1) of
the Internal Revenue Code of 1986, as added by this
section.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to taxable years beginning after Decem-
ber 31, 2000.
(2) AMENDMENTS
TO
WITHHOLDING
PROVI-
SIONS.—The amendments made by paragraphs (5),
(6), (7), (8), and (9) of subsection (c) shall apply to
amounts paid after the date of the enactment of this
Act.
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