II 110th CONGRESS 2d Session S. 2855 IN THE SENATE OF THE UNITED STATES April 15, 2008 Mr. Bingaman (for himself and Mr. Smith) 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 adjust the dollar amounts used to calculate the credit for the elderly and the permanently disabled for inflation since 1985.

1.

Inflation adjustment for elderly and disabled credit dollar amounts

(a)

In general

Section 22 of the Internal Revenue Code of 1986 (relating to credit for the elderly and the permanently disabled) is amended by adding at the end the following new subsection: (g)

Inflation adjustment

(1)

In general

In the case of any taxable year beginning after 2007, each of the dollar amounts contained in subsections (c) and (d) shall be increased by an amount equal to— (A)such dollar amount, multiplied by (B)the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, by substituting 1983 for 1992 in subparagraph (B) thereof. (2)

Rounding

If any increase determined under subparagraph (A) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50. . (b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2007.