[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 147 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 147

  To amend the Internal Revenue Code of 1986 to increase the personal 
      exemption for dependents to $5,000, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 4, 1995

   Mr. Gramm 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 personal 
      exemption for dependents to $5,000, 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. INCREASE IN PERSONAL EXEMPTION FOR DEPENDENTS TO $5,000.

    (a) Increase In Exemption.--Paragraph (1) of section 151(d) of the 
Internal Revenue Code of 1986 (defining exemption amount) is amended to 
read as follows:
            ``(1) Determination of amount.--
                    ``(A) In general.--Except as otherwise provided in 
                this subsection, the term `exemption amount' means 
                $2,000.
                    ``(B) Additional amount for dependents.--In the 
                case of an exemption under subsection (c), the 
                exemption amount is $5,000.''.
    (b) Conforming Amendments.--
            (1) Subparagraph (A) of section 151(d)(3) is amended by 
        striking ``the exemption amount'' and inserting ``the exemption 
        amount (after any adjustment under paragraph (4))''.
            (2) Subparagraph (A) of section 151(d)(4) is amended--
                    (A) by striking ``the dollar amount'' and inserting 
                ``each dollar amount'', and
                    (B) by striking everything following ``begins,'' in 
                clause (ii) and inserting ``except that subparagraph 
                (B) thereof shall be applied by substituting `1988' for 
                `1992' in the case of the $2,000 amount and by 
                substituting `1994' for `1992' in the case of the 
                $5,000 amount.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.

SEC. 2. DECREASE IN FEDERAL DISCRETIONARY SPENDING AUTHORITY TO FINANCE 
              INCREASE IN PERSONAL EXEMPTION.

    Section 601(a)(2) of the Congressional Budget Act of 1974 is 
amended--
            (1) in subparagraph (E) by striking ``and'' after the 
        semicolon; and
            (2) by striking subparagraph (F) and inserting the 
        following:
                    ``(F) with respect to fiscal year 1996, for the 
                discretionary category, $491,330,000,000 in new budget 
                authority and $524,265,000,000 in outlays;
                    ``(G) with respect to fiscal year 1997, for the 
                discretionary category, $498,679,000,000 in new budget 
                authority and $520,271,000,000 in outlays; and
                    ``(H) for each of the fiscal years 1998, 1999, 
                2000, 2001, and 2002 $499,899,000,000 in new budget 
                authority and $517,686,000,000 in outlays.''.
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