‘‘(A) 
DEFINITION
OF
MIDDLE-INCOME
TAXPAYER.—
‘‘(i) IN
GENERAL.—For purposes of
this subsection, the term ‘middle-income
taxpayer’ means a taxpayer whose adjusted
gross income for the taxable year does not
exceed the applicable maximum dollar
amount.
‘‘(ii) APPLICABLE MAXIMUM DOLLAR
AMOUNT.—For purposes of this paragraph,
the term ‘applicable maximum dollar
amount’ means—
‘‘(I) $102,000 in the case of a
joint return or a surviving spouse (as
defined in section 2(a)),
‘‘(II) $87,300 in the case of a
head of household (as defined in sec-
tion 2(b)),
‘‘(III) $61,000 in the case of an
individual who is not married and is
not a surviving spouse or head of
household, and
‘‘(IV) $51,000 in the case of a
married individual filing a separate
return.
‘‘(B) PHASEOUT OF ADDITIONAL EXEMP-
TION AMOUNT.—
‘‘(i) IN GENERAL.—In the case of any
middle-income taxpayer whose adjusted
gross income exceeds the applicable transi-
tion dollar amount, the additional exemp-
tion amount shall be reduced by the
amount determined under clause (ii).
‘‘(ii) AMOUNT
OF
REDUCTION.—The
amount determined under this clause with
respect to the additional exemption amount
shall be the amount which bears the same
ratio to the additional exemption amount
as—
‘‘(I) the excess of the taxpayer’s
adjusted gross income for the taxable
year over the applicable transition dol-
lar amount, bears to
‘‘(II) the excess of the applicable
maximum dollar amount over the ap-
plicable transition dollar amount.
‘‘(iii) APPLICABLE TRANSITION DOL-
LAR AMOUNT.—For purposes of this sub-
paragraph, the term ‘applicable transition
dollar amount’ means—
‘‘(I) $47,000 in the case of a
joint return or a surviving spouse (as
defined in section 2(a)),
‘‘(II) $37,000 in the case of a
head of household (as defined in sec-
tion 2(b)),
‘‘(III) $28,000 in the case of an
individual who is not married and is
not a surviving spouse or head of
household, and
‘‘(IV) $23,500 in the case of a
married individual filing a separate
return.’’
(c) INFLATION ADJUSTMENTS.—Paragraph (5) of
section 151(d) (as so redesignated by subsection (b) of this
section) is amended by adding at the end the following
new subparagraph:
‘‘(C) ADJUSTMENTS RELATING TO ADDI-
TIONAL EXEMPTION AMOUNT.—In the case of
any taxable year beginning in a calendar year
after 1994, the dollar amount contained in
paragraph (1)(B) and each dollar amount con-
tained in paragraph (4) shall be increased by
an amount equal to—
‘‘(i) such dollar amount, multiplied by
‘‘(ii) the cost-of-living adjustment
under section 1(f)(3) for the calendar year
in which the taxable year begins, deter-
mined by substituting ‘calendar year 1993’
for ‘calendar year 1989’ in subparagraph
(B) of such section.’’
(d) CONFORMING AMENDMENTS.—
(1) Paragraph (6) of section 1(f) is amended by
striking ‘‘section 151(d)(4)’’ each place it appears
and inserting ‘‘section 151(d)(5)’’.
(2) Paragraph (3) of section 151(d) is amend-
ed—
(A) in the paragraph caption, by inserting
‘‘OF
REGULAR
EXEMPTION
AMOUNT’’ after
‘‘PHASEOUT’’, and
(B) in subparagraph (A), by inserting
‘‘regular’’ before ‘‘exemption amount’’.
(3) Subparagraph (A) of section 151(d)(5) (as
so redesignated by subsection (b) of this section) is
amended—
(A) in the matter preceding clause (i) by
striking ‘‘paragraph (1)’’ and inserting ‘‘para-
graph (1)(A)’’, and
(B) by striking ‘‘BASIC’’ in the heading
and inserting ‘‘REGULAR’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1993.
TITLE II—REVENUE PROVISIONS
SEC. 201. INCREASE IN RATE OF INDIVIDUAL INCOME TAX
FOR HIGH-INCOME TAXPAYERS.
(a) IN GENERAL.—
(1) MARRIED INDIVIDUALS FILING JOINT RE-
TURNS AND SURVIVING SPOUSES.—Subsection (a) of
section 1 (relating to tax imposed on married indi-
viduals filing joint returns and surviving spouses) is
amended by striking the item beginning ‘‘Over
$78,400’’ and inserting the following new items:
‘‘Over 
$78,400 
but 
not 
over
$100,000.
$17,733.50, plus 31% of the excess
over $78,400.
‘‘Over $100,000 .............................
$24,429.50, plus 36% of the excess
over $100,000.’’
(2) HEADS OF HOUSEHOLDS.—Subsection (b)
of section 1 (relating to tax imposed on heads of
households) is amended by striking the item begin-
ning ‘‘Over $67,200’’ and inserting the following
new items:
‘‘Over 
$67,200 
but 
not 
over
$85,000.
$15,429.50, plus 31% of the excess
over $67,200.
‘‘Over $85,000 ...............................
$20,947.50, plus 36% of the excess
over $85,000.’’
(3) UNMARRIED
INDIVIDUALS
(OTHER
THAN
SURVIVING
SPOUSES
AND
HEADS
OF
HOUSE-
HOLDS).—Subsection (c) of section 1 (relating to tax