A bill to amend the Internal Revenue Code of 1986 to make marriage penalty relief effective immediately in the 15-percent bracket and the standard deduction.

Amends the Internal Revenue Code to immediately (for tax years after 2001 rather than after 2004) and totally (no phaseout) eliminate the marriage penalty in the 15-percent bracket and the standard deduction.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1513 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1513

  To amend the Internal Revenue Code of 1986 to make marriage penalty 
relief effective immediately in the 15-percent bracket and the standard 
                               deduction.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 9, 2001

 Mrs. Hutchison (for herself, Mr. Brownback, Mr. Miller, Mr. Smith of 
     New Hampshire, Mr. Hutchinson, Mr. Fitzgerald, and Mr. Allen) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to make marriage penalty 
relief effective immediately in the 15-percent bracket and the standard 
                               deduction.

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

SECTION 1. ELIMINATION OF MARRIAGE PENALTY IN 15-PERCENT BRACKET.

    (a) In General.--Section 1(f) of the Internal Revenue Code of 1986 
is amended by adding at the end the following:
            ``(8) Elimination of marriage penalty in 15-percent 
        bracket.--
                    ``(A) In general.--With respect to taxable years 
                after December 31, 2001, in prescribing the tables 
                under paragraph (1)--
                            ``(i) the maximum taxable income in the 15-
                        percent 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 200 percent of the maximum 
                        taxable income in the 15-percent 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) 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 the Internal 
        Revenue Code of 1986 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 ``Elimination 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, 2001.

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 the Internal 
        Revenue Code of 1986 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, 2001.

SEC. 3. CONFORMING AMENDMENTS.

    (a) In General.--Sections 301 and 302 of the Economic Growth and 
Tax Relief Reconciliation Act of 2001 are hereby repealed.
    (b) Application of Code.--The Internal Revenue Code of 1986 shall 
be applied and administered as if the provisions and amendments 
described in subsection (a) had never been enacted.
                                 <all>