[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 120 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 120

       To eliminate the marriage tax penalty permanently in 2003.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 9, 2003

 Mrs. Hutchison (for herself, Mr. Bayh, Mr. Brownback, Mr. Hagel, Mr. 
  Fitzgerald, Mr. Cornyn, Mr. Cochran, and Mr. Burns) 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 ``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 ``$5,000'' in subparagraph (A) and 
                inserting ``200 percent of the dollar amount in effect 
                under subparagraph (C) for the taxable year'';
                    (B) by adding ``or'' at the end of subparagraph 
                (B);
                    (C) by striking ``in the case of'' and all that 
                follows in subparagraph (C) and inserting ``in any 
                other case.''; and
                    (D) by striking subparagraph (D).
            (2) Technical amendments.--
                    (A) Subparagraph (B) of section 1(f)(6) of such 
                Code is amended by striking ``(other than with'' and 
                all that follows through ``shall be applied'' and 
                inserting ``(other than with respect to sections 
                63(c)(4) and 151(d)(4)(A)) shall be applied''.
                    (B) Paragraph (4) of section 63(c) of such Code is 
                amended by adding at the end the following flush 
                sentence:
        ``The preceding sentence shall not apply to the amount referred 
        to in paragraph (2)(A).''.
            (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.--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 by 
        adding at the end the following new paragraph:
            ``(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) Technical amendments.--
                    (A) Subparagraph (A) of section 1(f)(2) of such 
                Code is amended by inserting ``except as provided in 
                paragraph (8),'' before ``by increasing''.
                    (B) The heading for subsection (f) of section 1 is 
                amended by inserting ``Elimination of Marriage Penalty 
                in 15-Percent Bracket;'' before ``Adjustments''.
            (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 amendments.--Sections 301, 302, and 303(g) of 
        the Economic Growth and Tax Relief Reconciliation Act of 2001 
        are 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 section 303 (other 
        than subsection (g) of such section) of such Act (relating to 
        marriage penalty relief).
                                 <all>