I
106TH CONGRESS
2D SESSION
H. R. 3612
To amend the Internal Revenue Code of 1986 to repeal the adjusted gross
income limitations on itemized deductions, the personal exemption deduc-
tion, and the child tax credit and to repeal the alternative minimum
tax on individuals.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 10, 2000
Mr. SAM JOHNSON of Texas (for himself, Mr. RAMSTAD, Mr. TRAFICANT, Mr.
SENSENBRENNER, Mr. HOSTETTLER, Mr. ISTOOK, Mr. GOSS, Mr.
FOLEY, and Mr. GEKAS) 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 repeal
the adjusted gross income limitations on itemized deduc-
tions, the personal exemption deduction, and the child
tax credit and to repeal the alternative minimum tax
on individuals.
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
‘‘Family Values Tax Relief Act of 2000’’.
(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.
SEC. 2. REPEAL OF OVERALL LIMITATION ON ITEMIZED DE-
DUCTIONS.
(a) IN GENERAL.—Section 68 (relating to overall
limitation on itemized deductions) is hereby repealed.
(b) TECHNICAL AMENDMENTS.—
(1) Subparagraph (A) of section 1(f)(6) is
amended by striking ‘‘section 68(b)(2)’’.
(2) Paragraph (1) of section 56(b) is amended
by striking subparagraph (F).
(3) Subparagraph (B) of section 773(a)(3) is
amended by striking clause (i) and by redesignating
clauses (ii), (iii), and (iv) as clauses (i), (ii), and
(iii), respectively.
(4) The table of sections for part I of sub-
chapter B of chapter 1 is amended by striking the
item relating to section 68.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 3. REPEAL OF PHASEOUT OF PERSONAL EXEMPTIONS.
(a) IN GENERAL.—Subsection (d) of section 151 (re-
lating to exemption amount) is amended by striking para-
graph (3).
(b) TECHNICAL AMENDMENTS.—
(1) Paragraph (6) of section 1(f) is amended—
(A) by striking ‘‘section 151(d)(4)’’ in sub-
paragraph 
(A) 
and 
inserting 
‘‘section
151(d)(3)’’, and
(B) by striking ‘‘section 151(d)(4)(A)’’ in
subparagraph 
(B) 
and 
inserting 
‘‘section
151(d)(3)’’.
(2) Paragraph (4) of section 151(d) is amended
to read as follows:
‘‘(3) INFLATION ADJUSTMENT.—In the case of
any taxable year beginning in a calendar year after
1989, the dollar amount contained in paragraph (1)
shall be increased 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, by sub-
stituting ‘calendar year 1988’ for ‘calendar year
1992’ in subparagraph (B) thereof.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 4. REPEAL OF ADJUSTED GROSS INCOME LIMITATION
IN CHILD TAX CREDIT.
(a) IN GENERAL.—Section 24 (relating to child tax
credit) is amended by striking subsection (b) and by redes-
ignating subsections (c) through (f) as subsections (b)
through (e), respectively.
(b) CONFORMING AMENDMENT.—Clause (ii) of sec-
tion 32(n)(1)(B) is amended by striking ‘‘section 24(d)’’
and inserting ‘‘section 24(c)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 5. REPEAL OF ALTERNATIVE MINIMUM TAX ON INDI-
VIDUALS.
(a) IN GENERAL.—Subsection (a) of section 55 (re-
lating to alternative minimum tax imposed) is amended
by adding at the end the following new flush sentence:
‘‘Except in the case of a corporation, no tax shall be im-
posed by this section for any taxable year beginning after
December 31, 2000, and the tentative minimum tax of any
taxpayer other than a corporation shall be zero for pur-
poses of this title.’’
(b) CONFORMING AMENDMENTS.—
(1) Subparagraph (B) of section 1(g)(7) is
amended by adding ‘‘and’’ at the end of clause (i),
by striking ‘‘, and’’ at the end of clause (ii) and in-
serting a period, and by striking clause (iii).
(2) Section 2(d) is amended by striking ‘‘sec-
tions 1 and 55’’ and inserting ‘‘section 1’’
(3) Section 5(a) is amended by striking para-
graph (4).
(4) Subsection (c) of section 24, as redesig-
nated by section 4, is amended by striking para-
graph (2) and by redesignating paragraph (3) as
paragraph (2).
(5)(A) Subsection (a) of section 26 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 taxpayer’s regular
tax liability for the taxable year.’’
(B) Subsection (c) of section 26 is amended by
inserting before the period ‘‘; except that such
amount shall be treated as being zero in the case of
a taxpayer other than a corporation.’’
(6) Paragraph (6) of section 29(b) is amended
to read as follows:
‘‘(6) APPLICATION
WITH
OTHER
CREDITS.—
The credit allowed by subsection (a) for any taxable
year shall not exceed the regular tax for the taxable
year reduced by the sum of the credits allowable
under subpart A and section 27. In the case of a
corporation, the limitation under the preceding sen-
tence shall be reduced (but not below zero) by the
tentative minimum tax for the taxable year.’’.
(7) Paragraph (3) of section 30(b) is amended
to read as follows:
‘‘(3) APPLICATION
WITH
OTHER
CREDITS.—
The credit allowed by subsection (a) for any taxable
year shall not exceed the regular tax for the taxable
year reduced by the sum of the credits allowable
under subpart A and sections 27 and 29. In the case
of a corporation, the limitation under the preceding
sentence shall be reduced (but not below zero) by the
tentative minimum tax for the taxable year.’’.
(8) Section 32 is amended by striking sub-
section (h).
(9) Subsection (d) of section 53(d) is amended
to read as follows:
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) NET MINIMUM TAX.—The term ‘net min-
imum tax’ means the tax imposed by section 55 in-
creased by the amount of the credit not allowed
under section 29 (relating to credit for producing
fuel from a nonconventional source) solely by reason
of the application of the last sentence of section
29(b)(6), or not allowed under section 30 solely by
reason of the application of the last sentence of sec-
tion 30(b)(3).
‘‘(2) TENTATIVE
MINIMUM
TAX.—The term
‘tentative minimum tax’ has the meaning given to
such term by section 55(b); except that such tax
shall be treated as being zero in the case of a tax-
payer other than a corporation.’’.
(10)(A) Subsection (b) of section 55 (relating
to alternative minimum tax imposed) is amended to
read as follows:
‘‘(b) TENTATIVE MINIMUM TAX.—For purposes of
this part—
‘‘(1) AMOUNT OF TENTATIVE TAX.—The ten-
tative minimum tax for the taxable year is—
‘‘(A) 20 percent of so much of the alter-
native minimum taxable income for the taxable
year as exceeds the exemption amount, reduced
by
‘‘(B) the alternative minimum tax foreign
tax credit for the taxable year.
‘‘(2) ALTERNATIVE
MINIMUM
TAXABLE
IN-
COME.—The term ‘alternative minimum taxable in-
come’ means the taxable income of the taxpayer for
the taxable year—
‘‘(A) determined with the adjustments pro-
vided in section 56, and
‘‘(B) increased by the amount of the items
of tax preference described in section 57.
If a taxpayer is subject to the regular tax, such tax-
payer shall be subject to the tax imposed by this sec-
tion (and, if the regular tax is determined by ref-
erence to an amount other than taxable income, such
amount shall be treated as the taxable income of
such taxpayer for purposes of the preceding sen-
tence).’’.
(B) Subsection (d) of section 55 is amended to
read as follows:
‘‘(d) EXEMPTION AMOUNT.—For purposes of this
section—
‘‘(1) IN
GENERAL.—The term ‘exemption
amount’ means $40,000.
‘‘(2) PHASE-OUT
OF
EXEMPTION
AMOUNT.—
The exemption amount of any taxpayer shall be re-
duced (but not below zero) by an amount equal to
25 percent of the amount by which the alternative
minimum taxable income of the taxpayer exceeds
$150,000.’’.
(11)(A) Paragraph (6) of section 56(a) is
amended to read as follows:
‘‘(6) ADJUSTED BASIS.—The adjusted basis of
any property to which paragraph (1) or (5) applies
(or with respect to which there are any expenditures
to which paragraph (2) applies) shall be determined
on the basis of the treatment prescribed in para-
graph (1), (2), or (5), whichever applies.’’.
(B) Section 56 is amended by striking sub-
section (b).
(C) Subsection (c) of section 56 is amended by
striking so much of the subsection as precedes para-
graph (1), by redesignating paragraphs (1), (2), and
(3) as paragraphs (8), (9), and (10), respectively,
and moving them to the end of subsection (a).
(D) Paragraph (8) of section 56(a), as redesig-
nated by subparagraph (C), is amended by striking
‘‘subsection (g)’’ and inserting ‘‘subsection (c)’’.
(E) Section 56 is amended by striking sub-
section (e) and by redesignating subsections (d) and
(g) as subsections (b) and (c), respectively.
(12)(A) Section 58 is hereby repealed.
(B) Clause (i) of section 56(b)(2)(A) (as redes-
ignated by paragraph (11)(E)), is amended by in-
serting ‘‘, in the case of taxable years beginning be-
fore January 1, 2001,’’ before ‘‘section 58’’.
(C) Subsection (h) of section 59 is amended—
(i) by striking ‘‘, 465, and 1366(d)’’ and
inserting ‘‘and 465’’, and
(ii) by striking ‘‘56, 57, and 58’’ and in-
serting ‘‘56 and 57’’.
(13)(A) Subparagraph (C) of section 59(a)(1)
is amended by striking ‘‘subparagraph (A)(i) or
(B)(i) of section 55(b)(1) (whichever applies)’’ and
inserting ‘‘section 55(b)(1)(A)’’.
(B) Paragraph (3) of section 59(a) is amended
to read as follows:
‘‘(3) PRE-CREDIT TENTATIVE MINIMUM TAX.—
For purposes of this subsection, the term ‘pre-credit
tentative minimum tax’ means the amount deter-
mined under section 55(b)(1)(A).’’.
(C) Section 59 is amended by striking sub-
section (c).
(D) Section 59 is amended by striking sub-
section (j).
(14) Paragraph (7) of section 382(l) is amend-
ed by striking ‘‘section 56(d)’’ and inserting ‘‘section
56(b)’’.
(15) Paragraph (2) of section 641(c) is amend-
ed by striking subparagraph (B) and by redesig-
nating subparagraphs (C) and (D) as subparagraphs
(B) and (C), respectively.
(16) Subsections (b) and (c) of section 666 are
each amended by striking ‘‘(other than the tax im-
posed by section 55)’’.
(17) Subsections (c)(5) and (d)(3)(B) of section
772 are each amended by striking ‘‘56, 57, and 58’’
and inserting ‘‘56 and 57’’.
(18) Sections 847 and 848(i) are each amended
by striking ‘‘section 56(g)’’ and inserting ‘‘section
56(c)’’.
(19) Sections 871(b)(1) and 877(b) are each
amended by striking ‘‘or 55’’.
(20) Subsection (a) of section 897 is amended
to read as follows:
‘‘(a) GENERAL RULE.—For purposes of this title,
gain or loss of a nonresident alien individual or a foreign
corporation from the disposition of a United States real
property interest shall be taken into account—
‘‘(1) in the case of a nonresident alien indi-
vidual, under section 871(b)(1), or
‘‘(2) in the case of a foreign corporation, under
section 882(a)(1),
as if the taxpayer were engaged in a trade or business
within the United States during the taxable year and as
if such gain or loss were effectively connected with such
trade or business.’’.
(21) Paragraph (1) of section 962(a) is amend-
ed by striking ‘‘sections 1 and 55’’ and inserting
‘‘section 1’’.
(22) Paragraph (1) of section 1397E(c) is
amended to read as follows:
‘‘(1) the regular tax liability (as defined in sec-
tion 26(b), over’’
(23) The last sentence of section 1563(a) is
amended by striking ‘‘section 55(d)(3)’’ and insert-
ing ‘‘section 55(d)(2)’’.
(24) Subparagraph (B) of section 6015(d)(2) is
amended by striking ‘‘or 55’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
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