I 
110TH CONGRESS 
1ST SESSION H. R. 1421 
To amend the Internal Revenue Code of 1986 to increase tax benefits for 
parents with children, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 8, 2007 
Mr. TERRY (for himself, Mr. PAUL, Mr. BARTLETT of Maryland, Mr. FRANKS 
of Arizona, Mr. WAMP, Mrs. BONO, Mr. RADANOVICH, Mrs. BLACKBURN, 
Mr. MILLER of Florida, Mr. GARRETT of New Jersey, Mr. BILIRAKIS, 
Mr. SENSENBRENNER, Mr. FORTENBERRY, Mrs. MUSGRAVE, Mr. 
MCCAUL of Texas, Mr. SOUDER, and Mr. MCCOTTER) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to increase 
tax benefits for parents with children, 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. SHORT TITLE. 
This Act may be cited as the ‘‘Parents’ Tax Relief 
Act of 2007’’ . 
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SEC. 2. MINIMUM DEPENDENT CARE CREDIT FOR PARENTS 
CARING FOR CHILDREN AT HOME. 
(a) IN GENERAL.—Subsection (e) of section 21 of the 
Internal Revenue Code of 1986 (relating to special rules) 
is amended by adding at the end the following new para-
graph: 
‘‘(11) MINIMUM CREDIT ALLOWED FOR STAY- 
AT-HOME PARENTS.—In the case of any taxpayer 
with one or more qualifying individuals under age 7 
at any time during the taxable year, such taxpayer 
shall be deemed to have employment-related ex-
penses with respect to each such qualifying indi-
vidual and earned income in an amount equal to the 
greater of— 
‘‘(A) the amount of employment-related ex-
penses incurred for such qualifying individual 
for the taxable year (determined under this sec-
tion without regard to this paragraph), or 
‘‘(B) $250 for each month beginning in 
such taxable year with respect to which such 
qualifying individual has not attained age 7 as 
of the beginning of such month.’’. 
(b) PHASEOUT OF CREDIT.—Section 21 of such Code 
is amended by redesignating subsection (f) as subsection 
(g) and inserting after subsection (e) the following new 
subsection: 
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‘‘(f) PHASEOUT OF CREDIT.— 
‘‘(1) IN
GENERAL.—The credit determined 
under subsection (a) shall be reduced (but not below 
zero) by 2 percentage points for each $2,500 (or 
fraction thereof) by which the taxpayer’s adjusted 
gross income for the taxable year exceeds the thresh-
old amount. 
‘‘(2) THRESHOLD AMOUNT.—For purposes of 
this 
subsection, 
the 
term 
‘threshold 
amount’ 
means— 
‘‘(A) $100,000 in the case of a joint re-
turn, or a surviving spouse, for which there is 
one qualifying individual, 
‘‘(B) $120,000 in the case of a joint re-
turn, or a surviving spouse, for which there are 
two or three qualifying individuals, 
‘‘(C) $160,000 in the case of a joint re-
turn, or a surviving spouse, for which there are 
four or more qualifying individuals, 
‘‘(D) $75,000 in the case of a head of 
household for which there is one qualifying indi-
vidual, 
‘‘(E) $90,000 in the case of a head of 
household for which there are two or three 
qualifying individuals, 
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‘‘(F) $120,000 in the case of a head of 
household for which there are four or more 
qualifying individuals, 
‘‘(G) $50,000 in the case of any other tax-
payer for which there is one qualifying indi-
vidual, 
‘‘(H) $60,000 in the case of any other tax-
payer for which there are two or three quali-
fying individuals, and 
‘‘(I) $80,000 in the case of any other tax-
payer for which there are four or more quali-
fying individuals.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
SEC. 3. INCREASE IN PERSONAL EXEMPTION AMOUNT. 
(a) IN GENERAL.—Paragraph (1) of section 151(d) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘$2,000’’ and inserting ‘‘$5,000’’ . 
(b) INFLATION ADJUSTMENT.—Subparagraph (A) of 
section 151(d)(4) of such Code is amended— 
(1) by striking ‘‘1989’’ and inserting ‘‘2007’’, 
and 
(2) by striking ‘‘1988’’ in clause (ii) and insert-
ing ‘‘2006’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
SEC. 4. ELIMINATION OF CERTAIN MARRIAGE PENALTIES. 
(a) ELIMINATION OF MARRIAGE PENALTY IN ALL 
RATE BRACKETS.—Paragraph (8) of section 1(f) of the 
Internal Revenue Code of 1986 (relating to phaseout of 
marriage penalty in 15-percent bracket) is amended to 
read as follows: 
‘‘(8) ELIMINATION OF MARRIAGE PENALTY.— 
With respect to taxable years beginning after De-
cember 31, 2006, in prescribing the tables under 
paragraph (1)— 
‘‘(A) the minimum and maximum amounts 
of taxable income in each rate bracket in the 
table contained in subsection (a) shall be 200 
percent of the minimum and maximum amounts 
of taxable income in the corresponding rate 
bracket in the table contained in subsection (c) 
(after any other adjustment under this sub-
section), and 
‘‘(B) 
the 
comparable 
taxable 
income 
amounts in the table contained in subsection 
(d) shall be 1⁄2 of the amounts determined 
under subparagraph (A).’’. 
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