[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1196 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1196

       To eliminate the marriage tax penalty permanently in 2003.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 5, 2003

Mrs. Hutchison (for herself, Mr. Brownback, Mr. Bunning, Mr. Burns, Mr. 
Cochran, Mr. Fitzgerald, and Mr. Hagel) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
       To eliminate the marriage tax penalty permanently in 2003.

    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 ``Permanent Marriage Penalty Relief 
Act of 2003''.

SEC. 2. ACCELERATION OF MARRIAGE PENALTY RELIEF PROVISIONS.

    (a) Elimination of Marriage Penalty in Standard Deduction.--
            (1) In general.--Paragraph (2) of section 63(c) of the 
        Internal Revenue Code of 1986 (relating to standard deduction) 
        is amended--
                    (A) by striking ``the applicable percentage of the 
                dollar amount in effect under subparagraph (D)'' in 
                subparagraph (A) and inserting ``200 percent of the 
                dollar amount in effect under subparagraph (C)'';
                    (B) by adding ``or'' at the end of subparagraph 
                (B);
                    (C) by striking subparagraph (C);
                    (D) by redesignating subparagraph (D) as 
                subparagraph (C); and
                    (E) by striking the last sentence.
            (2) Conforming amendments.--
                    (A) Paragraph (4) of section 63(c) of such Code is 
                amended by striking ``(2)(D)'' each place it appears 
                and inserting ``(2)(C)''.
                    (B) Paragraph (7) of section 63(c) of such Code is 
                repealed.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2002.
    (b) Elimination of Marriage Penalty in 15-Percent Bracket.--
            (1) In general.--Paragraph (8) of Section 1(f) of the 
        Internal Revenue Code of 1986 (relating to adjustments in tax 
        tables so that inflation will not result in tax increases) is 
        amended to read as follows:
            ``(8) Elimination of marriage penalty in 15-percent 
        bracket.--
                    ``(A) In general.--With respect to taxable years 
                beginning after December 31, 2002, in prescribing the 
                tables under paragraph (1)--
                            ``(i) the maximum taxable income in the 15-
                        percent rate bracket in the table contained in 
                        subsection (a) (and the minimum taxable income 
                        in the next higher taxable income bracket in 
                        such table) shall be 200 percent of the maximum 
                        taxable income in the 15-percent rate bracket 
                        in the table contained in subsection (c) (after 
                        any other adjustment under this subsection), 
                        and
                            ``(ii) the comparable taxable income 
                        amounts in the table contained in subsection 
                        (d) shall be \1/2\ of the amounts determined 
                        under clause (i).
                    ``(B) Rounding.--If any amount determined under 
                subparagraph (A)(i) is not a multiple of $50, such 
                amount shall be rounded to the next lowest multiple of 
                $50.''.
            (2) Conforming amendment.--The heading for subsection (f) 
        of section 1 of such Code is amended by striking ``Phaseout'' 
        and inserting ``Elimination''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2002.
    (c) Marriage Penalty Relief for Earned Income Credit.--
            (1) Increased phaseout amount.--
                    (A) In general.--Section 32(b)(2)(B) of the 
                Internal Revenue Code of 1986 (relating to amounts) is 
                amended by striking ```increased by--'' and all that 
                follows and inserting ``increased by $3,000.''.
                    (B) Inflation adjustment.--Paragraph (1)(B)(ii) of 
                section 32(j) of such Code (relating to inflation 
                adjustments) is amended to read as follows:
                            ``(ii) in the case of the $3,000 amount in 
                        subsection (b)(2)(B), by substituting `calendar 
                        year 2003' for `calendar year 1992' in 
                        subparagraph (B) of such section 1.''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to taxable years beginning after 
                December 31, 2002.
            (2) Expansion of mathematical error authority.--
                    (A) In general.--Paragraph (2) of section 6213(g) 
                of such Code is amended by striking ``and'' at the end 
                of subparagraph (K), by striking the period at the end 
                of subparagraph (L) and inserting ``, and'', and by 
                inserting after subparagraph (L) the following new 
                subparagraph:
                    ``(M) the entry on the return claiming the credit 
                under section 32 with respect to a child if, according 
                to the Federal Case Registry of Child Support Orders 
                established under section 453(h) of the Social Security 
                Act, the taxpayer is a noncustodial parent of such 
                child.''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall take effect on January 1, 2003.
    (d) Conforming Amendments.--
            (1) Repeal of amendment.--Sections 303(g) of the Economic 
        Growth and Tax Relief Reconciliation Act of 2001 is repealed.
            (2) Repeal of Sunset.--Title IX of the Economic Growth and 
        Tax Relief Reconciliation Act of 2001 (relating to sunset of 
        provisions of such Act) shall not apply to sections 301, 302, 
        and 303 (other than subsection (g) of such section 303) of such 
        Act (relating to marriage penalty relief).
                                 <all>