[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2053 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2053

  To amend the Internal Revenue Code of 1986 to provide marriage tax 
                penalty relief for earned income credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 10, 2000

 Mr. Jeffords 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 marriage tax 
                penalty relief for earned income credit.

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

SECTION 1. MARRIAGE TAX PENALTY RELIEF FOR EARNED INCOME CREDIT.

    (a) In General.--Paragraph (2) of section 32(b) of the Internal 
Revenue Code of 1986 (relating to percentages and amounts) is amended--
            (1) by striking ``Amounts.--The earned'' and inserting 
        ``Amounts.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                earned'', and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Joint returns.--In the case of a joint 
                return, the phaseout amount determined under 
                subparagraph (A) shall be increased by $3,500.''.
    (b) Inflation Adjustment.--Paragraph (1)(B) of section 32(j) of the 
Internal Revenue Code of 1986 (relating to inflation adjustments) is 
amended to read as follows:
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined--
                            ``(i) in the case of amounts in subsections 
                        (b)(1)(A) and (i)(1), by substituting `calendar 
                        year 1995' for `calendar year 1992' in 
                        subparagraph (B) thereof, and
                            ``(ii) in the case of the $3,500 amount in 
                        subsection (b)(1)(B), by substituting `calendar 
                        year 2000' for `calendar year 1992' in 
                        subparagraph (B) of such section 1.''.
    (c) Rounding.--Section 32(j)(2)(A) of the Internal Revenue Code of 
1986 (relating to rounding) is amended by striking ``subsection 
(b)(2)'' and inserting ``subsection (b)(2)(A) (after being increased 
under subparagraph (B) thereof)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
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