[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1157 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1157

To amend the Internal Revenue Code of 1986 to provide that the adjusted 
gross income of an individual shall be adjusted to reflect the value of 
 such income relative to the cost-of-living in the area in which such 
                          individual resides.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 1, 1993

   Mr. Levy 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 provide that the adjusted 
gross income of an individual shall be adjusted to reflect the value of 
 such income relative to the cost-of-living in the area in which such 
                          individual resides.

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

SECTION 1. ADJUSTED GROSS INCOME ADJUSTED TO REFLECT ITS VALUE RELATIVE 
              TO COST-OF-LIVING FOR THE AREA IN WHICH THE INDIVIDUAL 
              RESIDES.

    (a) In General.--Subsection (a) of section 62 of the Internal 
Revenue Code of 1986 (defining adjusted gross income) is amended by 
striking ``gross income minus the following deductions'' and inserting 
``the product of the excess of gross income over the following 
deductions and the area cost-of-living multiplier (as defined in 
subsection (d)) applicable to the taxpayer''.
    (b) Cost-of-Living Multiplier.--Section 62 of such Code is amended 
by adding at the end thereof the following new subsection:
    ``(d) Area Cost-of-Living Multiplier.--
            ``(1) In general.--The area cost-of-living multiplier 
        applicable to any individual for any taxable year is the cost-
        of-living multiplier prescribed by the Secretary for the 
        calendar year in which such taxable year begins which applies 
        to the area which includes the taxpayer's primary place of 
        abode during such taxable year.
            ``(2) Determination of multipliers.--
                    ``(A) In general.--Not later than December 15 of 
                each calendar year, the Secretary shall prescribe a 
                cost-of-living multiplier for each area of the United 
                States which shall apply to taxable years beginning 
                during the succeeding calendar year.
                    ``(B) Method of determining multipliers.--The 
                Secretary shall determine the cost-of-living multiplier 
                for any area for any calendar year by dividing--
                            ``(i) the average cost-of-living for the 
                        United States for the preceding calendar year, 
                        by
                            ``(ii) the cost-of-living for such area for 
                        such preceding calendar year.
                    ``(C) Cost-of-living for area.--The Secretary shall 
                determine the cost-of-living for an area for a calendar 
                year using an average of retail market prices for such 
                area for the 12-month period ending on August 31 of 
                such calendar year. The retail market prices taken into 
                account under the preceding sentence shall be selected 
                and used under the same methodology as is used by the 
                Bureau of Labor Statistics in developing the Consumer 
                Price Index for All Urban Consumers.
            ``(3) Areas outside the united states.--The area cost-of-
        living multiplier for any area outside the United States shall 
        be 1.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after ______.

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