[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1989 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 1989

  To amend the Internal Revenue Code of 1986 to increase the standard 
deduction amount to reduce the marriage penalty, simplify the filing of 
  individual tax returns, and provide tax relief for lower and middle 
              income individuals, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 27, 1998

   Mr. Ford 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 standard 
deduction amount to reduce the marriage penalty, simplify the filing of 
  individual tax returns, and provide tax relief for lower and middle 
              income individuals, 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. SHORT TITLE.

    This Act may be cited as the ``Marriage Penalty Reduction Act''.

SEC. 2. INCREASE IN STANDARD DEDUCTION AMOUNT.

    (a) Standard Deduction Amount.--Section 63(c)(2) of the Internal 
Revenue Code of 1986 (relating to the basic standard deduction) is 
amended--
            (1) by striking ``$5,000'' and inserting ``$12,000'' in 
        subparagraph (A),
            (2) by striking ``$4,400'' and inserting ``$9,000'' in 
        subparagraph (B),
            (3) by striking ``$3,000'' and inserting ``$6,000'' in 
        subparagraph (C), and
            (4) by striking ``$2,500'' and inserting ``$6,000'' in 
        subparagraph (D).
    (b) Indexing of Amount.--Subparagraph (B) of section 63(c)(4) of 
the Internal Revenue Code of 1986 (relating to adjustments for 
inflation) is amended--
            (1) in clause (i)--
                    (A) by striking ``(2) or'', and
                    (B) by striking ``and'' at the end,
            (2) in clause (ii), by striking the period at the end and 
        inserting ``, and'', and
            (3) by adding at the end the following new clause:
                            ``(iii) `calendar year 1998' in the case of 
                        the dollar amounts contained in paragraph 
                        (2).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
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