Marriage Tax Penalty Elimination Act of 1998 - Amends the Internal Revenue Code to revise standard deduction amounts and individual income tax rate bracket amounts, including providing that amounts for married filing jointly categories shall be twice that of amounts for single filers.
[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3734 Introduced in House (IH)]
105th CONGRESS
2d Session
H. R. 3734
To amend the Internal Revenue Code of 1986 to eliminate the marriage
penalty by providing that the income tax rate bracket amounts, and the
amount of the standard deduction, for joint returns shall be twice the
amounts applicable to unmarried individuals.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 28, 1998
Mr. Weller (for himself, Mr. McIntosh, Mr. Riley, and Mr. Herger)
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 eliminate the marriage
penalty by providing that the income tax rate bracket amounts, and the
amount of the standard deduction, for joint returns shall be twice the
amounts applicable to unmarried individuals.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short Title.--This Act may be cited as the ``Marriage Tax
Penalty Elimination Act of 1998''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment 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
provision of the Internal Revenue Code of 1986.
(c) Section 15 Not To Apply.--No amendment made by section 2 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 INDIVIDUAL INCOME TAX RATES.
(a) General Rule.--Section 1 (relating to tax imposed) is amended
by striking subsections (a) through (e) and inserting the following:
``(a) Married Individuals Filing Joint Returns and Surviving
Spouses.--There is hereby imposed on the taxable income of--
``(1) every married individual (as defined in section 7703)
who makes a single return jointly with his spouse under section
6013, and
``(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table:
``If taxable income is: The tax is:
Not over $50,700...............
15% of taxable income.
Over $50,700 but not over
$122,800.
$7,605, plus 28% of the excess
over $50,700.
Over $122,800 but not over
$256,200.
$27,793, plus 31% of the excess
over $122,800.
Over $256,200 but not over
$556,900.
$69,147, plus 36% of the excess
over $256,200.
Over $556,900..................
$177,399, plus 39.6% of the
excess over $556,900.
``(b) Heads of Households.--There is hereby imposed on the taxable
income of every head of a household (as defined in section 2(b)) a tax
determined in accordance with the following table:
``If taxable income is: The tax is:
Not over $33,950...............
15% of taxable income.
Over $33,950 but not over
$87,700.
$5,092.50, plus 28% of the
excess over $33,950.
Over $87,700 but not over
$142,000.
$20,142.50, plus 31% of the
excess over $87,700.
Over $142,000 but not over
$278,450.
$36,975.50, plus 36% of the
excess over $142,000.
Over $278,450..................
$86,097.50, plus 39.6% of the
excess over $278,450.
``(c) Other Individuals.--There is hereby imposed on the taxable
income of every individual (other than an individual to whom subsection
(a) or (b) applies) a tax determined in accordance with the following
table:
``If taxable income is: The tax is:
Not over $25,350...............
15% of taxable income.
Over $25,350 but not over
$61,400.
$3,802.50, plus 28% of the
excess over $25,350.
Over $61,400 but not over
$128,100.
$13,896.50, plus 31% of the
excess over $61,400.
Over $128,100 but not over
$278,450.
$34,573.50, plus 36% of the
excess over $128,100.
Over $278,450..................
$88,699.50, plus 39.6% of the
excess over $278,450.
``(d) Estates and Trusts.--There is hereby imposed on the taxable
income of--
``(1) every estate, and
``(2) every trust,
taxable under this subsection a tax determined in accordance with the
following table:
``If taxable income is: The tax is:
Not over $1,700................
15% of taxable income.
Over $1,700 but not over $4,000
$255, plus 28% of the excess
over $1,700.
Over $4,000 but not over $6,100
$899, plus 31% of the excess
over $4,000.
Over $6,100 but not over $8,350
$1,550, plus 36% of the excess
over $6,100.
Over $8,350....................
$2,360, plus 39.6% of the
excess over $8,350.''.
(b) Inflation Adjustment To Apply in Determining Rates for 1999.--
Subsection (f) of section 1 is amended--
(1) by striking ``1993'' in paragraph (1) and inserting
``1998'',
(2) by striking ``1992'' in paragraph (3)(B) and inserting
``1997'', and
(3) by striking paragraph (7).
(c) Conforming Amendments.--
(1) The following provisions are each amended by striking
``1992'' and inserting ``1997'' each place it appears:
(A) Section 25A(h).
(B) Section 32(j)(1)(B).
(C) Section 41(e)(5)(C).
(D) Section 68(b)(2)(B).
(E) Section 135(b)(2)(B)(ii).
(F) Section 151(d)(4).
(G) Section 221(g)(1)(B).
(H) Section 512(d)(2)(B).
(I) Section 513(h)(2)(C)(ii).
(J) Section 877(a)(2).
(K) Section 911(b)(2)(D)(ii)(II).
(L) Section 4001(e)(1)(B).
(M) Section 4261(e)(4)(A)(ii).
(N) Section 6039F(d).
(O) Section 6334(g)(1)(B).
(P) Section 7430(c)(1).
(2) Subclause (II) of section 42(h)(6)(G)(i) is amended by
striking ``1987'' and inserting ``1997''.
(3) Subparagraph (B) of section 59(j)(2) is amended by
striking ``, determined by substituting `1997' for `1992' in
subparagraph (B) thereof''.
(4) Subparagraph (B) of section 132(f)(6) is amended by
inserting before the period ``, determined by substituting
`calendar year 1992' for `calendar year 1997' in subparagraph
(B) thereof''.
(5) Paragraph (2) of section 220(g) of such Code is amended
by striking ``by substituting `calendar year 1997' for
`calendar year 1992' in subparagraph (B) thereof''.
(6) Subparagraph (B) of section 685(c)(3) is amended by
striking ``, by substituting `calendar year 1997' for `calendar
year 1992' in subparagraph (B) thereof''.
(7) Subparagraph (B) of section 2032A(a)(3) is amended by
striking ``by substituting `calendar year 1997' for `calendar
year 1992' in subparagraph (B) thereof''.
(8) Subparagraph (B) of section 2503(b)(2) is amended by
striking ``by substituting `calendar year 1997' for `calendar
year 1992' in subparagraph (B) thereof''.
(9) Paragraph (2) of section 2631(c) is amended by striking
``by substituting `calendar year 1997' for `calendar year 1992'
in subparagraph (B) thereof''.
(10) Subparagraph (B) of section 6601(j)(3) is amended by
striking ``by substituting `calendar year 1997' for `calendar
year 1992' in subparagraph (B) thereof''.
(11) Sections 468B(b)(1), 511(b)(1), 641(a), 641(d)(2)(A),
and 685(d) are each amended by striking ``section 1(e)'' each
place it appears and inserting ``section 1(d)''.
(12) Sections 1(f)(2) and 904(b)(3)(E)(ii) are each amended
by striking ``(d), or (e)'' and inserting ``or (d)''.
(13) Paragraph (1) of section 1(f) is amended by striking
``(d), and (e)'' and inserting ``and (d)''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 1998.
SEC. 3. ELIMINATION OF MARRIAGE PENALTY IN STANDARD DEDUCTION.
(a) In General.--Paragraph (2) of section 63(c) (relating to
standard deduction) is amended to read as follows:
``(2) Basic standard deduction.--For purposes of paragraph
(1), the basic standard deduction is--
``(A) $8,500 in the case of--
``(i) a joint return, or
``(ii) a surviving spouse (as defined in
section 2(a)),
``(B) $6,250 in the case of a head of household (as
defined in section 2(b)), or
``(C) $4,250 in any other case.''
(b) Technical Amendments.--
(1) Paragraph (4) of section 63(c) is amended to read as
follows:
``(4) Adjustments for inflation.--In the case of any
taxable year beginning in a calendar year after 1998, each
dollar amount contained in paragraph (2) or (5) or subsection
(f) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins.''
(2) Subparagraph (A) of section 63(c)(5) is amended by
striking ``$500'' and inserting ``$700''.
(3) Subsection (f) of section 63 is amended by striking
``$600'' each place it appears and inserting ``$850'' and by
striking ``$750'' in paragraph (3) and inserting ``$1,050''.
(4) Subparagraph (B) of section 1(f)(6) is amended by
striking ``subsection (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, 1998.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Sponsor introductory remarks on measure. (CR H3373)
Sponsor introductory remarks on measure. (CR H5960)
Sponsor introductory remarks on measure. (CR H7498)
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