[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 172 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 172

To amend the Internal Revenue Code of 1986 to restore the deduction for 
                      two-earner married couples.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            Januaryy 5, 1993

  Mr. Duncan 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 restore the deduction for 
                      two-earner married couples.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That (a) part VII of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 
(relating to additional itemized deductions for individuals) is amended 
by redesignating section 220 as section 221 and by inserting after 
section 219 the following new section:

``SEC. 220. DEDUCTION FOR TWO-EARNER MARRIED COUPLES.

    ``(a) Deduction Allowed.--In the case of a joint return under 
section 6013 for the taxable year, there shall be allowed as a 
deduction an amount equal to 10 percent of the lesser of--
            ``(1) $30,000, or
            ``(2) the qualified earned income of the spouse with the 
        lower qualified earned income for such taxable year.
    ``(b) Phaseout.--The amount allowed as a deduction under subsection 
(a) shall be reduced (but not below zero) by 12 percent of so much of 
the adjusted gross income of the taxpayer for the taxable year 
(determined without regard to this section) as exceeds $75,000.
    ``(c) Qualified Earned Income Defined.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified earned income' means an amount equal to the excess 
        of--
                    ``(A) the earned income of the spouse for the 
                taxable year, over
                    ``(B) an amount equal to the sum of the deductions 
                described in paragraphs (1), (2), (6), (7), (11), and 
                (13) of section 62(a) to the extent such deductions are 
                properly allocable to or chargeable against earned 
                income described in subparagraph (A).
        The amount of qualified earned income shall be determined 
        without regard to any community property laws.
            ``(2) Earned income.--For purposes of paragraph (1), the 
        term `earned income' means income which is earned income within 
        the meaning of section 911(d)(2) or 401(c)(2)(C), except that--
                    ``(A) such term shall not include any amount--
                            ``(i) not includible in gross income,
                            ``(ii) received as a pension or annuity,
                            ``(iii) paid or distributed out of an 
                        individual retirement plan (within the meaning 
                        of section 7701(a)(37)),
                            ``(iv) received as deferred compensation, 
                        or
                            ``(v) received for services performed by an 
                        individual in the employ of his spouse (within 
                        the meaning of section 3121(b)(3)(A)), and
                    ``(B) section 911(d)(2)(B) shall be applied without 
                regard to the phrase `not in excess of 30 percent of 
                his share of net profits of such trade or business'.
    ``(d) Deduction Disallowed for Individual Claiming Benefits of 
Section 911 or 931.--No deduction shall be allowed under this section 
for any taxable year if either spouse claims the benefits of section 
911 or 931 for such taxable year.''
    (b)(1) Subsection (a) of section 62 of such Code (defining adjusted 
gross income) is amended by inserting after paragraph (13) the 
following new paragraph:
            ``(14) Deduction for two-earner married couples.--The 
        deduction allowed by section 220.''
    (2) Subparagraph (A) of section 86(b)(2) of such Code is amended by 
inserting ``220,'' after ``135,''.
    (3) Subsection (f) of section 86 of such Code is amended by 
striking ``and'' at the end of paragraph (3), by adding ``and'' at the 
end of paragraph (4), and by inserting at the end of paragraph (4) the 
following new paragraph:
            ``(5) section 220(c)(2) (defining earned income),''.
    (4) The table of sections for part VII of subchapter B of chapter 1 
of such Code is amended by striking the item relating to section 220 
and inserting the following:

                              ``Sec. 220. Deduction for two-earner 
                                        married couples.
                              ``Sec. 221. Cross reference.''
    (c) The amendments made by this section shall apply to taxable 
years beginning after December 31, 1991.

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