[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1134 Introduced in Senate (IS)]


104th CONGRESS
  1st Session
                                S. 1134

                     To provide family tax relief.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               August 9 (legislative day, July 10), 1995

     Mr. Nickles (for himself, Mr. Grams, Mr. Dole, Mr. Coats, Mr. 
  Faircloth, Mr. Kempthorne, Mr. Coverdell, Mr. Shelby, Mr. Mack, Mr. 
 Thurmond, Mr. Gramm, Mr. Santorum, Mr. Smith, Mr. Kyl, Mr. Thompson, 
Mr. Inhofe, Mr. Craig, Mr. Bennett, Mr. Brown, and Mr. Lott) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
                     To provide family tax relief.
    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 ``American Family Tax Relief Act of 
1995''.

SEC. 2. FAMILY TAX CREDIT.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 22 the following new section:

``SEC. 23. FAMILY TAX CREDIT.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to $500 multiplied by the number of qualifying children of the 
taxpayer.
    ``(b) Qualifying Child.--For purposes of this section--
            ``(1) In general.--The term `qualifying child' means any 
        individual if--
                    ``(A) the taxpayer is allowed a deduction under 
                section 151 with respect to such individual for such 
                taxable year,
                    ``(B) such individual has not attained the age of 
                18 as of the close of the calendar year in which the 
                taxable year of the taxpayer begins, and
                    ``(C) such individual bears a relationship to the 
                taxpayer described in section 32(c)(3)(B) (determined 
                without regard to clause (ii) thereof).
            ``(2) Exception for certain noncitizens.--The term 
        `qualifying child' shall not include any individual who would 
        not be a dependent if the first sentence of section 152(b)(3) 
        were applied without regard to all that follows `resident of 
        the United States'.
    ``(c) Inflation Adjustment.--
            ``(1) In general.--In the case of a taxable year beginning 
        in a calendar year after 1996, the $500 amount contained in 
        subsection (a) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 1995' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any amount as adjusted under paragraph 
        (1) is not a multiple of $50, such amount shall be rounded to 
        the nearest multiple of $50.
    ``(d) Certain Other Rules Apply.--Rules similar to the rules of 
subsections (d) and (e) of section 32 shall apply for purposes of this 
section.''
    (b) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 22 the following new item:

``Sec. 23. Family tax credit.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.
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