In the Senate of the United States,
July 18, 2000.
Resolved, That the bill from the House of Representa-
tives (H.R. 4810) entitled ‘‘An Act to provide for reconcili-
ation pursuant to section 103(a)(1) of the concurrent resolu-
tion on the budget for fiscal year 2001.’’, do pass with the
following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Marriage Tax Relief Reconciliation Act of 2000’’.
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(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 insert-
ing ‘‘(other than with respect to sections 63(c)(4) and
151(d)(4)(A)) shall be applied’’.
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(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 Decem-
ber 31, 2000.
SEC. 3. PHASEOUT OF MARRIAGE PENALTY IN 15-PERCENT
AND 28-PERCENT RATE BRACKETS.
(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 increases)
is amended by adding at the end the following new para-
graph:
‘‘(8) PHASEOUT OF MARRIAGE PENALTY IN 15-
PERCENT AND 28-PERCENT RATE BRACKETS.—
‘‘(A) IN GENERAL.—With respect to taxable
years beginning after December 31, 2001, in pre-
scribing the tables under paragraph (1)—
‘‘(i) the maximum taxable income
amount in the 15-percent rate bracket, the
minimum and maximum taxable income
amounts in the 28-percent rate bracket, and
the minimum taxable income amount in the
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31-percent rate bracket in the table con-
tained in subsection (a) shall be the appli-
cable percentage of the comparable taxable
income amounts in the table contained in
subsection (c) (after any other adjustment
under this subsection), and
‘‘(ii) the comparable taxable income
amounts in the table contained in sub-
section (d) shall be 1⁄2 of the amounts deter-
mined under clause (i).
‘‘(B) APPLICABLE PERCENTAGE.—For pur-
poses of subparagraph (A), the applicable per-
centage shall be determined in accordance with
the following table:
‘‘For taxable years beginning
The applicable
in calendar year—
percentage is—
2002 ....................................................................................
170.3
2003 ....................................................................................
173.8
2004 ....................................................................................
180.0
2005 ....................................................................................
183.2
2006 ....................................................................................
185.0
2007 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) TECHNICAL AMENDMENTS.—
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(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
AND 28-PER-
CENT RATE BRACKETS;’’ before ‘‘ADJUSTMENTS’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Decem-
ber 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 percentages
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
$2,500.’’.
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(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 $2,500 amount
in subsection (b)(2)(B), by substituting ‘cal-
endar year 2000’ for ‘calendar year 1992’
in subparagraph (B) of such section 1.’’.
(c) ROUNDING.—Section 32(j)(2)(A) of such Code (re-
lating to rounding) is amended by striking ‘‘subsection
(b)(2)’’ and inserting ‘‘subsection (b)(2)(A) (after being in-
creased under subparagraph (B) thereof)’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Decem-
ber 31, 2000.
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SEC. 5. PRESERVE FAMILY TAX CREDITS FROM THE ALTER-
NATIVE MINIMUM TAX.
(a) IN GENERAL.—Subsection (a) of section 26 of the
Internal Revenue Code of 1986 (relating to limitation based
on tax liability; definition of tax liability) 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 sum of—
‘‘(1) the taxpayer’s regular tax liability for the
taxable year reduced by the foreign tax credit allow-
able under section 27(a), and
‘‘(2) the tax imposed for the taxable year by sec-
tion 55(a).’’.
(b) CONFORMING AMENDMENTS.—
(1) Subsection (d) of section 24 of such Code is
amended by striking paragraph (2) and by redesig-
nating paragraph (3) as paragraph (2).
(2) Section 32 of such Code is amended by strik-
ing subsection (h).
(3) Section 904 of such Code is amended by
striking subsection (h) and by redesignating sub-
sections (i), (j), and (k) as subsections (h), (i), and
(j), respectively.
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(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Decem-
ber 31, 2001.
SEC. 6. COMPLIANCE WITH BUDGET ACT.
(a) IN GENERAL.—Except as provided in subsection
(b), all amendments made by this Act which are in effect
on September 30, 2005, shall cease to apply as of the close
of September 30, 2005.
(b) SUNSET FOR CERTAIN PROVISIONS ABSENT SUB-
SEQUENT LEGISLATION.—The amendments made by sec-
tions 2, 3, 4, and 5 of this Act shall not apply to any tax-
able year beginning after December 31, 2004.
Attest:
Secretary.