[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 605 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 605

 To amend the Internal Revenue Code of 1986 to restore the phaseout of 
personal exemptions and the overall limitation on itemized deductions, 
   and to create a trust fund for the funding of education programs.


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                   IN THE SENATE OF THE UNITED STATES

                             March 11, 2005

Mr. Harkin (for himself and Mr. Durbin) 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 restore the phaseout of 
personal exemptions and the overall limitation on itemized deductions, 
   and to create a trust fund for the funding of education programs.

    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 ``Education Funding Act of 2005''.

SEC. 2. RESTORATION OF PHASEOUT OF PERSONAL EXEMPTIONS.

    (a) In General.--Paragraph (3) of section 151(d) of the Internal 
Revenue Code of 1986 (relating to exemption amount) is amended by 
striking subparagraphs (E) and (F).
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2005.

SEC. 3. RESTORATION OF PHASEOUT OF OVERALL LIMITATION ON ITEMIZED 
              DEDUCTIONS.

    (a) In General.--Section 68 of the Internal Revenue Code of 1986 is 
amended by striking subsections (f) and (g).
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2005.

SEC. 4. DEDICATION OF REVENUES FOR EDUCATION PROGRAMS.

    (a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the ``Education Trust 
Fund'', consisting of such amounts as may be appropriated or credited 
to the Education Trust Fund as provided in this section.
    (b) Transfers to Education Trust Fund.--
            (1) In general.--There are hereby appropriated to the 
        Education Trust Fund amounts equivalent to the sum of 50 
        percent of the net PEP revenues and 50 percent of the net Pease 
        revenues received in the Treasury.
            (2) Definitions.--
                    (A) Net pep revenues.--For purposes of paragraph 
                (1), the term ``net PEP revenues'' means the amount 
                estimated by the Secretary of the Treasury based on the 
                taxes received under chapter 1 of the Internal Revenue 
                Code of 1986 which are attributable to the amendment 
                made by section 2 of this Act.
                    (B) Net pease revenues.--For purposes of paragraph 
                (1), the term ``net Pease revenues'' means the amount 
                estimated by the Secretary of the Treasury based on the 
                taxes received under chapter 1 of the Internal Revenue 
                Code of 1986 which are attributable to the amendment 
                made by section 3 of this Act.
    (c) Expenditures From Trust Fund.--Amounts in the Education Trust 
Fund shall be available, as provided in appropriations Acts, only for 
programs administered by the Department of Education to the degree that 
funding for the specified programs are increased from the fiscal year 
2005 level.
    (d) Other Special Rules.--Rules similar to the rules of subchapter 
B of chapter 98 of the Internal Revenue Code of 1986 shall apply for 
purposes of this section.
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