[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 98 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 98

  To amend the Internal Revenue Code of 1986 to provide a family tax 
                                credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 21, 1997

 Mr. Grams (for himself, Mr. Hutchinson, Mr. Nickles, Mr. Kyl, and 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 provide a family tax 
                                credit.

    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 ``Family Tax Fairness Act of 1997''.

SEC. 2. FAMILY TAX CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. FAMILY TAX CREDIT.

    ``(a) General Rule.--In the case of an eligible individual, there 
shall be allowed as a credit against the tax imposed by this subtitle 
for the taxable year an amount equal to $500 multiplied by the number 
of qualifying children of the taxpayer who have not attained the age of 
18 as of the close of the calendar year in which the taxable year of 
the taxpayer begins.
    ``(b) Limitation Based on Amount of Tax.--The credit allowed by 
subsection (a) for a taxable year shall not exceed the excess (if any) 
of--
            ``(1) the sum of--
                    ``(A) the tax imposed by this subtitle for the 
                taxable year (reduced by the credits allowable against 
                such tax other than the credits allowable under this 
                subpart), and
                    ``(B) the taxes imposed by sections 3101 and 3111 
                on wages received by the taxpayer during such taxable 
                year, over
            ``(2) the credit allowable for the taxable year under 
        section 32.
    ``(c) Inflation Adjustments.--
            ``(1) In general.--In the case of a taxable year beginning 
        in a calendar year after 1997, the $500 amount contained in 
        subsection (a) shall be increased by an amount equal to--
                    ``(A) $500, 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 
                `1996' for `1992' in subparagraph (B) thereof.
            ``(2) Rounding.--If any increase determined under paragraph 
        (1) is not a multiple of $5, such increase shall be rounded to 
        the next higher multiple of $5.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Eligible individual.--The term `eligible individual' 
        has the meaning given to such term by section 32(c)(1) 
        (determined without regard to subparagraph (B) thereof).
            ``(2) Qualifying child.--The term `qualifying child' has 
        the meaning given to such term by section 32(c)(3) (determined 
        without regard to subparagraphs (C) and (E) thereof).
            ``(3) Certain other rules apply.--Subsections (d) and (e) 
        of section 32 shall apply.''
    (b) Denial of Double Benefit.--Subparagraph (A) of section 21(b)(1) 
of such Code (defining qualifying individual) is amended by inserting 
``(other than an individual described in section 35(a))'' after 
``taxpayer''.
    (c) Conforming Amendment.--The table of sections for such subpart C 
is amended by striking the item relating to section 35 and inserting 
the following new items:

                              ``Sec. 35. Family tax credit.
                              ``Sec. 36. Overpayments of tax.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1996.
                                 <all>