Earned Income Tax Credit Reform Act of 2001

Earned Income Tax Credit Reform Act of 2001 - Amends the Internal Revenue Code respecting the earned income credit to: (1) eliminate the credit for persons without children; and (2) decrease credit percentages and increase credit phaseout percentages.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1652 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1652

To amend the Internal Revenue Code of 1986 to reduce the amount of the 
                         earned income credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 1, 2001

 Mr. Collins 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 reduce the amount of the 
                         earned income credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Earned Income Tax Credit Reform Act 
of 2001''.

SEC. 2. REDUCTION OF EARNED INCOME CREDIT.

    (a) Repeal of Credit for Individuals Without Children.--
            (1) In general.--Subparagraph (A) of section 32(c)(1) of 
        the Internal Revenue Code of 1986 (defining eligible 
        individual) is amended to read as follows:
                    ``(A) In general.--The term `eligible individual' 
                means any individual who has a qualifying child for the 
                taxable year.''.
            (2) Conforming amendment.--The table contained in paragraph 
        (2) of section 32(b) of such Code is amended by striking the 
        item relating to no qualifying children.
    (b) Reduction of Credit Percentages; Increase in Phaseout 
Percentages.--Paragraph (1) of section 32(b) of such Code (relating to 
percentages) is amended to read as follows:
            ``(1) Percentages.--The credit percentage and the phaseout 
        percentage shall be determined as follows:

      

 
                     In the case of an
                         eligible            The credit percentage is:           The phaseout percentage is:
                     individual with:
 
                    1 qualifying child  18.5...............................                 16.98
                    2 or more           19.5...............................                22.06''.
                     qualifying
                     children.........
 

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.
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