[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 474 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 474

 To amend the Internal Revenue Code of 1986 to increase the amount of 
 the exemption for dependent children under age 18 to $3,500, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 2 (legislative day, January 5), 1993

   Mr. Coats 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 increase the amount of 
 the exemption for dependent children under age 18 to $3,500, and for 
                            other purposes.

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

SECTION 1. STATEMENT OF CONGRESSIONAL FINDINGS.

    The Congress hereby finds that--
            (1) the erosion of the personal exemption over the past 
        several decades has exacted an inordinate financial penalty on 
        families with children,
            (2) the simplest and most effective way to reinvest and 
        strengthen families is by allowing families to keep more of 
        their own hard-earned money,
            (3) an increase in the dependent deduction would begin to 
        ease the growing financial strain on families, and mark a 
        return to tax fairness for families,
            (4) if the personal exemption had kept pace with inflation, 
        increases in per capita income and increases in family costs, 
        it would be approximately $8,000 today, and
            (5) the dependent deduction should be raised to $3,500 with 
        a goal to reach the appropriate level by the year 2000.

SEC. 2. INCREASE IN PERSONAL EXEMPTION FOR CERTAIN DEPENDENT CHILDREN.

    (a) General Rule.--Paragraph (1) of section 151(d) of the Internal 
Revenue Code of 1986 (defining exemption amount) is amended to read as 
follows:
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `exemption amount' means $2,000 (or, in 
        the case of an exemption under subsection (c) for a child who 
        has not attained age 18 before the close of the calendar year 
        in which the taxable year begins, $3,500).''
    (b) Conforming Amendments.--
            (1) Subparagraph (A) of section 151(d)(3) of such Code is 
        amended by striking ``the exemption amount'' and inserting 
        ``each dollar amount in effect under paragraph (1) (after any 
        adjustment under paragraph (4))''.
            (2) Subparagraph (A) of section 151(d)(4) of such Code is 
        amended--
                    (A) by striking ``the dollar amount'' and inserting 
                ``each dollar amount'', and
                    (B) by adding at the end thereof the following new 
                sentence: ``In the case of the $3,500 amount contained 
                in paragraph (1), the preceding sentence shall be 
                applied by substituting `1993' for `1989' the first 
                place it appears, and by substituting `1992' for 
                `1988'.''

SEC. 3. ROUNDING OF INFLATION ADJUSTMENTS.

    Paragraph (6) of section 1(f) of the Internal Revenue Code of 1986 
(relating to rounding) is amended to read as follows:
            ``(6) Rounding.--If any increase determined under paragraph 
        (2)(A), subsection (g)(4), section 63(c)(4), section 68(b)(2), 
        or section 151(d)(4) is not a multiple of $10, such increase 
        shall be rounded to the nearest multiple of $10.''

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply to taxable years 
beginning after December 31, 1992.

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