(Sec. 3) Provides a six-year schedule for making, by 2009, the maximum taxable income in the lowest married bracket equal to double the maximum taxable income in the lowest single filer bracket.
Repeals provisions providing for: (1) the reduction in the additional child tax credit for families with three or more children for taxpayers subject to the alternative minimum tax; and (2) the reduction in the earned income credit for taxpayers subject to the alternative minimum tax.
Provides, starting in 2008, for increasing the alternative minimum tax exemption amount on joint returns.
(Sec. 4) Provides for increases in the earned income credit phaseout amount on a joint return equal to 110 percent of the otherwise applicable amount.
Includes in the definition of the term "earned income," for purposes of the earned income credit, only amounts included in gross income.
(Sec 5) Provides a schedule for increasing the child tax credit to $1,000 by 2006.
Prohibits the child tax credit from exceeding the excess of: (1) the sum of the regular tax liability plus the alternative minimum tax; over (2) the sum of the nonrefundable personal credits (other than the child tax credit) and the foreign tax credit and Puerto Rico and possession tax credit.
Extends the availability of the additional credit for families with three or more children to families with fewer than three children.
(Sec. 6) States that the amounts transferred to any Social Security Act trust fund shall be determined as if this Act had not been enacted.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 6
To amend the Internal Revenue Code of 1986 to reduce the marriage
penalty by providing for adjustments to the standard deduction, 15-
percent rate bracket, and earned income credit and to allow the
nonrefundable personal credits against regular and minimum tax
liability.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 15, 2001
Mr. Weller (for himself, Mr. Barcia, Mrs. Capito, Mr. Kerns, Mr.
Aderholt, Mr. Akin, Mr. Armey, Mr. Baird, Mr. Baker, Mr. Ballenger, Mr.
Barr of Georgia, Mr. Bartlett of Maryland, Mr. Barton of Texas, Mr.
Bass, Mr. Bachus, Mr. Bereuter, Ms. Berkley, Mrs. Biggert, Mr.
Bilirakis, Mr. Bishop, Mr. Blunt, Mr. Boehner, Mr. Boehlert, Mr.
Bonilla, Mrs. Bono, Mr. Brady of Texas, Mr. Brown of South Carolina,
Mr. Bryant, Mr. Burr of North Carolina, Mr. Burton of Indiana, Mr.
Buyer, Mr. Callahan, Mr. Calvert, Mr. Camp, Mr. Cannon, Mr. Cantor, Mr.
Chabot, Mr. Chambliss, Mr. Coble, Mr. Collins, Mrs. Cubin, Mr. Combest,
Mr. Cooksey, Mr. Cox, Mr. Crane, Mr. Crenshaw, Mr. Culberson, Mr.
Cunningham, Mrs. Jo Ann Davis of Virginia, Mr. Deal of Georgia, Mr.
DeMint, Mr. Diaz-Balart, Mr. Dreier, Mr. Duncan, Ms. Dunn, Mr. Ehlers,
Mr. Isakson, Mr. Ehrlich, Mr. English, Mrs. Emerson, Mr. Everett, Mr.
Ferguson, Mr. Flake, Mr. Fletcher, Mr. Foley, Mr. Fossella, Mr.
Frelinghuysen, Mr. Gallegly, Mr. Gekas, Mr. Ganske, Mr. Gibbons, Mr.
Gilchrest, Mr. Gilman, Mr. Goode, Mr. Goodlatte, Mr. Gordon, Mr. Goss,
Mr. Graham, Ms. Granger, Mr. Graves, Mr. Green of Wisconsin, Mr.
Greenwood, Mr. Grucci, Mr. Gutknecht, Mr. Hansen, Ms. Hart, Mr.
Hastings of Washington, Mr. Hayes, Mr. Hayworth, Mr. Hefley, Mr.
Herger, Mr. Hilleary, Mr. Hobson, Mr. Hoekstra, Mr. Holt, Mr. Horn, Mr.
Hostettler, Mr. Houghton, Mr. Hulshof, Mr. Hunter, Mr. Hutchinson, Mr.
Hyde, Mr. Issa, Mr. Istook, Mr. Jenkins, Mrs. Johnson of Connecticut,
Mr. Sam Johnson of Texas, Mr. Johnson of Illinois, Mr. Jones of North
Carolina, Mr. Keller, Mrs. Kelly, Mr. Kennedy of Minnesota, Mr.
Knollenberg, Mr. King, Mr. Kingston, Mr. Kirk, Mr. Kolbe, Mr. Largent,
Mr. Latham, Mr. LaHood, Mr. LaTourette, Mr. Leach, Mr. Lewis of
Kentucky, Mr. Linder, Mr. Lipinski, Mr. LoBiondo, Mr. Lucas of
Oklahoma, Mr. Maloney of Connecticut, Mr. Manzullo, Mrs. McCarthy of
New York, Mr. McCrery, Mr. Larsen of Washington, Mr. McHugh, Mr.
McInnis, Mr. McIntyre, Mr. McKeon, Mr. Mica, Mr. Miller of Florida, Mr.
Gary Miller of California, Mr. Moran of Kansas, Mrs. Myrick, Mr. Ney,
Mr. Nethercutt, Mrs. Northup, Mr. Norwood, Mr. Nussle, Mr. Osborne, Mr.
Ose, Mr. Otter, Mr. Oxley, Mr. Paul, Mr. Pence, Mr. Peterson of
Pennsylvania, Mr. Petri, Mr. Pickering, Mr. Pitts, Mr. Platts, Mr.
Pombo, Mr. Portman, Ms. Pryce of Ohio, Mr. Putnam, Mr. Quinn, Mr.
Radanovich, Mr. Ramstad, Mr. Regula, Mr. Rehberg, Mr. Reynolds, Mr.
Riley, Mrs. Roukema, Mr. Roemer, Mr. Rogers of Kentucky, Mr. Rogers of
Michigan, Mr. Rohrabacher, Mr. Royce, Mr. Ryan of Wisconsin, Mr. Ryun
of Kansas, Mr. Scarborough, Mr. Sandlin, Mr. Schaffer, Mr. Schrock, Mr.
Sensenbrenner, Mr. Sessions, Mr. Shadegg, Mr. Shaw, Mr. Shays, Mr.
Sherwood, Mr. Shimkus, Mr. Shows, Mr. Simmons, Mr. Skeen, Mr. Smith of
New Jersey, Mr. Smith of Texas, Mr. Simpson, Mr. Souder, Mr. Spence,
Mr. Stearns, Mr. Stump, Mr. Sununu, Mr. Sweeney, Mr. Tauzin, Mr.
Tancredo, Mr. Taylor of North Carolina, Mr. Terry, Mr. Thune, Mr.
Tiahrt, Mr. Tiberi, Mr. Toomey, Mr. Upton, Mr. Vitter, Mr. Wamp, Mr.
Walden of Oregon, Mr. Watkins, Mr. Watts of Oklahoma, Mr. Weldon of
Florida, Mr. Whitfield, Mr. Wicker, Mrs. Wilson, Mr. Wolf, Mr. Young of
Florida, Mr. Young of Alaska, Mr. Walsh, Mr. Thornberry, and Mr.
Condit) 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 marriage
penalty by providing for adjustments to the standard deduction, 15-
percent rate bracket, and earned income credit and to allow the
nonrefundable personal credits against regular and minimum tax
liability.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) Short Title.--This Act may be cited as the ``Marriage Tax
Elimination Act of 2001''.
(b) Section 15 Not To Apply.--No amendment made by this Act 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 STANDARD DEDUCTION.
(a) In General.--Paragraph (2) of section 63(c) of the Internal
Revenue Code of 1986 (relating to standard deduction) is amended--
(1) by striking ``$5,000'' in subparagraph (A) and
inserting ``200 percent of the dollar amount in effect under
subparagraph (C) for the taxable year'';
(2) by adding ``or'' at the end of subparagraph (B);
(3) by striking ``in the case of'' and all that follows in
subparagraph (C) and inserting ``in any other case.''; and
(4) by striking subparagraph (D).
(b) Technical Amendments.--
(1) Subparagraph (B) of section 1(f)(6) of such Code is
amended by striking ``(other than with'' and all that follows
through ``shall be applied'' and inserting ``(other than with
respect to sections 63(c)(4) and 151(d)(4)(A)) shall be
applied''.
(2) Paragraph (4) of section 63(c) of such Code is amended
by adding at the end the following flush sentence:
``The preceding sentence shall not apply to the amount referred
to in paragraph (2)(A).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2000.
SEC. 3. PHASEOUT OF MARRIAGE PENALTY IN 15-PERCENT BRACKET.
(a) In General.--Subsection (f) of section 1 of the Internal
Revenue Code of 1986 (relating to adjustments in tax tables so that
inflation will not result in tax increases) is amended by adding at the
end the following new paragraph:
``(8) Phaseout of marriage penalty in 15-percent bracket.--
``(A) In general.--With respect to taxable years
beginning after December 31, 2000, in prescribing the
tables under paragraph (1)--
``(i) the maximum taxable income in the
lowest rate bracket in the table contained in
subsection (a) (and the minimum taxable income
in the next higher taxable income bracket in such table) shall be the
applicable percentage of the maximum taxable income in the lowest rate
bracket in the table contained in subsection (c) (after any other
adjustment under this subsection), and
``(ii) the comparable taxable income
amounts in the table contained in subsection
(d) shall be \1/2\ of the amounts determined
under clause (i).
``(B) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage shall be
determined in accordance with the following table:
``For taxable years beginning
The applicable
in calendar year--
percentage is--
2001................................... 170
2002................................... 173
2003................................... 178
2004................................... 183
2005 and thereafter.................... 200.
``(C) Rounding.--If any amount determined under
subparagraph (A)(i) is not a multiple of $50, such
amount shall be rounded to the next lowest multiple of
$50.''.
(b) Technical Amendments.--
(1) Subparagraph (A) of section 1(f)(2) of such Code is
amended by inserting ``except as provided in paragraph (8),''
before ``by increasing''.
(2) The heading for subsection (f) of section 1 of such
Code is amended by inserting ``Phaseout of Marriage Penalty in
15-Percent Bracket;'' before ``Adjustments''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2000.
SEC. 4. MARRIAGE PENALTY RELIEF FOR EARNED INCOME CREDIT.
(a) In General.--Paragraph (2) of section 32(b) of the Internal
Revenue Code of 1986 (relating to percentages and amounts) is amended--
(1) by striking ``Amounts.--The earned'' and inserting
``Amounts.--
``(A) In general.--Subject to subparagraph (B), the
earned''; and
(2) by adding at the end the following new subparagraph:
``(B) Joint returns.--In the case of a joint
return, the phaseout amount determined under
subparagraph (A) shall be increased by $2,000.''.
(b) Inflation Adjustment.--Paragraph (1)(B) of section 32(j) of
such Code (relating to inflation adjustments) is amended to read as
follows:
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined--
``(i) in the case of amounts in subsections
(b)(2)(A) and (i)(1), by substituting `calendar
year 1995' for `calendar year 1992' in
subparagraph (B) of section 1(f)(3), and
``(ii) in the case of the $2,000 amount in
subsection (b)(2)(B), by substituting `calendar
year 2000' for `calendar year 1992' in
subparagraph (B) of section 1(f)(3).''.
(c) Rounding.--Section 32(j)(2)(A) of such Code (relating to
rounding) is amended by striking ``subsection (b)(2)'' and inserting
``subparagraph (A) of subsection (b)(2) (after being increased under
subparagraph (B) thereof)''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2000.
SEC. 5. ALLOWANCE OF NONREFUNDABLE PERSONAL CREDITS AGAINST REGULAR AND
MINIMUM TAX LIABILITY.
(a) In General.--Subsection (a) of section 26 of the Internal
Revenue Code of 1986 (relating to limitation based on tax liability;
definition of tax liability) 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 sum of--
``(1) the taxpayer's regular tax liability for the taxable
year reduced by the foreign tax credit allowable under section
27(a), and
``(2) the tax imposed for the taxable year by section
55(a).''.
(b) Conforming Amendments.--
(1) Subsection (d) of section 24 of such Code is amended by
striking paragraph (2) and by redesignating paragraph (3) as
paragraph (2).
(2) Section 32 of such Code is amended by striking
subsection (h).
(3) Section 904 of such Code is amended by striking
subsection (h) and by redesignating subsections (i), (j), and
(k) as subsections (h), (i), and (j), respectively.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2000.
<all>
Reported (Amended) by the Committee on Ways and Means. H. Rept. 107-29. (text of measure as reported: CR 3/29/2001 H1302-1303)
Placed on the Union Calendar, Calendar No. 20.
Rules Committee Resolution H. Res. 104 Reported to House. Rule provides for consideration of H.R. 6 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. The amendment recommended by the Committee on Ways and Means now printed in the bill (House Rept. 107-29) shall be considered as adopted.
Rule H. Res. 104 passed House.
Considered under the provisions of rule H. Res. 104. (consideration: CR H1302-1329)
Rule provides for consideration of H.R. 6 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. A specified amendment is in order. The amendment recommended by the Committee on Ways and Means now printed in the bill (House Rept. 107-29) shall be considered as adopted.
DEBATE - The House proceeded with one hour of debate on H.R. 6.
DEBATE - Pursuant to the provisions of H. Res. 104, the House proceeded with one hour of debate on the Rangel amendment in the nature of a substitute.
The previous question was ordered on the bill as amended, and on the Rangel amendment, pursuant to the rule.
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Mr. Rangel moved to recommit with instructions to Ways and Means. (consideration: CR H1326-1327)
Floor summary: DEBATE - The House proceeded with 10 minutes of debate on the Rangel motion to recommit with instructions.
On motion to recommit with instructions Failed by recorded vote: 184 - 240 (Roll no. 74). (text: CR H1326-1327)
Roll Call #74 (House)Passed/agreed to in House: On passage Passed by the Yeas and Nays: 282 - 144 (Roll no. 75).
Roll Call #75 (House)On passage Passed by the Yeas and Nays: 282 - 144 (Roll no. 75).
Roll Call #75 (House)Motion to reconsider laid on the table Agreed to without objection.
The title of the measure was amended. Agreed to without objection.
Received in the Senate.
Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 68.
See H.R.1836.