I
105TH CONGRESS
2D SESSION
H. R. 3103
To amend the Internal Revenue Code of 1986 to increase the standard
deduction for married individuals, to exclude certain amounts of interest
and dividends from gross income, to increase the deduction for the
health insurance costs of self-employed individuals, and to allow private
colleges to establish prepaid tuition plans.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 27, 1998
Mr. PITTS (for himself, Ms. GRANGER, Mr. SUNUNU, Mr. HULSHOF, Mr.
BLUNT, Mr. COOK, Mr. PICKERING, Mr. BOB SCHAFFER of Colorado,
Mr. SNOWBARGER, Mr. BRADY, Mr. COOKSEY, Mr. ROGAN, Mr. PETER-
SON of Pennsylvania, Mr. WATKINS, Mr. CANNON, Mr. PEASE, Mr.
REDMOND, Mr. ADERHOLT, Mrs. EMERSON, Mr. SHIMKUS, Mr. HUTCH-
INSON, and Mr. RYUN) 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 standard deduction for married individuals, to ex-
clude certain amounts of interest and dividends from
gross income, to increase the deduction for the health
insurance costs of self-employed individuals, and to allow
private colleges to establish prepaid tuition plans.
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 ‘‘Family Reinvestment
and Shaping Our Future Act’’.
SEC. 2. INCREASE IN BASIC STANDARD DEDUCTION FOR
MARRIED INDIVIDUALS.
(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 ‘‘twice 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 AMENDMENT.—Subparagraph (B) of
section 1(f)(6) of such Code is amended by striking ‘‘sub-
section (c)(4) of section 63 (as it applies to subsections
(c)(5)(A) and (f) of such section)’’ and inserting ‘‘section
63(c)(4)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1997.
SEC. 3. PARTIAL EXCLUSION OF DIVIDENDS AND INTEREST
RECEIVED BY INDIVIDUALS.
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
amounts specifically excluded from gross income) is
amended by inserting after section 115 the following new
section:
‘‘SEC. 116. PARTIAL EXCLUSION OF DIVIDENDS AND INTER-
EST RECEIVED BY INDIVIDUALS.
‘‘(a) EXCLUSION FROM GROSS INCOME.—Gross in-
come does not include the sum of the amounts received
during the taxable year by an individual as—
‘‘(1) dividends from domestic corporations, or
‘‘(2) interest.
‘‘(b) LIMITATIONS.—
‘‘(1) 
MAXIMUM
AMOUNT.—The 
aggregate
amount excluded under subsection (a) for any tax-
able year shall not exceed $200 ($400 in the case of
a joint return).
‘‘(2) CERTAIN
DIVIDENDS
EXCLUDED.—Sub-
section (a)(1) shall not apply to any dividend from
a corporation which, for the taxable year of the cor-
poration in which the distribution is made, or for the
next preceding taxable year of the corporation, is a
corporation exempt from tax under section 501 (re-
lating to certain charitable, etc., organizations) or