[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1937 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1937

 To amend the Internal Revenue Code of 1986 to provide for adjustments 
 in the individual income tax rates to reflect regional differences in 
                          the cost-of-living.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 29, 1993

  Mr. Nadler (for himself, Mrs. Maloney, and 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 for adjustments 
 in the individual income tax rates to reflect regional differences in 
                          the cost-of-living.

    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 ``Tax Equity Act of 1993''.

SEC. 2. REGIONAL COST-OF-LIVING ADJUSTMENTS IN INDIVIDUAL INCOME TAX 
              RATES.

    (a) General Rule.--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 thereof the following new paragraphs:
            ``(6) Regional cost-of-living adjustments.--
                    ``(A) In general.--In the case of an individual, 
                the rate table otherwise in effect under this section 
                for any taxable year (determined after the application 
                of paragraph (1)) shall be further adjusted as provided 
                in subparagraph (B).
                    ``(B) Method of making regional adjustment.--The 
                rate table otherwise in effect under this section with 
                respect to any individual for any taxable year shall be 
                adjusted as follows:
                            ``(i) The minimum and maximum dollar 
                        amounts otherwise in effect for each rate 
                        bracket shall be multiplied by the cost-of-
                        living multiplier (for the calendar year in 
                        which the taxable year begins) which applies to 
                        the area in which the individual's primary 
                        place of abode during the taxable year is 
                        located.
                            ``(ii) The rate applicable to any rate 
                        bracket (as adjusted by clause (i)) shall not 
                        be changed.
                            ``(iii) The amount setting forth the tax 
                        shall be adjusted to the extent necessary to 
                        reflect the adjustments in the rate brackets.
                If any amount determined under clause (i) is not a 
                multiple of $50, such amount shall be rounded to the 
                nearest multiple of $50.
            ``(7) 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 (as defined by 
                the Secretary) of the United States which shall apply 
                to taxable years beginning during the succeeding 
                calendar year.
                    ``(B) Method of determining multipliers.--The cost-
                of-living multiplier for any area for any calendar year 
                is a fraction--
                            ``(i) the numerator of which is the cost-
                        of-living for such area for the preceding 
                        calendar year; and
                            ``(ii) the denominator of which is the 
                        average cost-of-living for the United States 
                        for the 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.
            ``(8) Areas outside the united states.--The area cost-of-
        living multiplier for any area outside the United States shall 
        be 1.''
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to taxable years beginning after December 31, 1992.
            (2) Transition rule.--Notwithstanding section 1(f)(7)(A) of 
        the Internal Revenue Code (as added by this section), the date 
        for prescribing cost-of-living multipliers for taxable years 
        beginning in calendar year 1993 shall be the date 90 days after 
        the date of the enactment of this Act.

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