[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 701 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 701

 To amend the Internal Revenue Code of 1986 to allow the deduction for 
 personal exemptions in determining alternative minimum taxable income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 12, 1997

  Mr. Borski 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 allow the deduction for 
 personal exemptions in determining alternative minimum taxable income.

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

SECTION 1. DEDUCTION FOR PERSONAL EXEMPTIONS ALLOWED IN DETERMINING 
              ALTERNATIVE MINIMUM TAXABLE INCOME.

    (a) In General.--Paragraph (1) of section 56(b) of the Internal 
Revenue Code of 1986 (relating to adjustments applicable to 
individuals) is amended by redesignating subparagraph (F) as 
subparagraph (H) and by striking subparagraph (E) and inserting the 
following new subparagraphs:
                    ``(E) Standard deduction not allowed.--The standard 
                deduction under section 63(c) shall not be allowed.
                    ``(F) Personal exemptions for individuals 
                allowed.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the deduction under section 151 
                        shall be allowed.
                            ``(ii) Phaseout.--In applying section 151 
                        for purposes of determining alternative minimum 
                        taxable income, the threshold amounts in clause 
                        (iii) shall be substituted for the amounts 
                        applicable under section 151(d)(3).
                            ``(iii) Threshold amount.--For purposes of 
                        clause (ii), the term `threshold amount' 
                        means--
                                    ``(I) $100,000 in the case of a 
                                joint return or a surviving spouse (as 
                                defined in section 2(a)),
                                    ``(II) $83,300 in the case of a 
                                head of a household (as defined in 
                                section 2(b)),
                                    ``(III) $66,700 in the case of an 
                                individual who is not married and who 
                                is not a surviving spouse or head of a 
                                household, and
                                    ``(IV) $50,000 in the case of a 
                                married individual filing a separate 
                                return.
                        For purposes of this clause, marital status 
                        shall be determined under section 7703.
                            ``(iv) Inflation adjustment of threshold 
                        amounts.--The threshold amounts in clause (iii) 
                        shall be adjusted at the same time and in the 
                        same manner as under section 151(d)(4)(B); 
                        except that the base for the adjustment of such 
                        amounts shall be the CPI for calendar year 1996 
                        (within the meaning of section 1(f)(4)).
                    ``(G) Personal exemption for trusts not allowed.--
                The deduction under section 642(b) shall not be 
                allowed.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1996.
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