[Congressional Record Volume 144, Number 141 (Friday, October 9, 1998)]
[Senate]
[Pages S12128-S12130]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     FINANCIAL SERVICES ACT OF 1998

  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       A bill (H.R. 10) to enhance competition in the financial 
     services industry by providing a prudential framework for the 
     affiliation of banks, securities firms, and other financial 
     service providers, and for other purposes.

  The Senate resumed consideration of the bill.
  Mr. LOTT. I now ask for the yeas and nays on the pending committee 
substitute.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.


                           Motion to recommit

  Mr. LOTT. I move to recommit H.R. 10 back to the Banking Committee to 
report back forthwith with an amendment.

[[Page S12129]]

                           Amendment No. 3804

  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Mississippi (Mr. Lott) proposes an 
     amendment numbered 3804.

  Mr. LOTT. Mr. President, I ask unanimous consent that reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (The text of the amendment is printed in today's Record under 
``Amendments Submitted.'')
  Mr. LOTT. I ask for the yeas and nays on the motion.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.


             Amendment No. 3805 to instructions to recommit

  Mr. LOTT. I send an amendment to the desk to the pending motion.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Mississippi (Mr. Lott) proposes an 
     amendment numbered 3805 to the instructions to recommit.

  Mr. LOTT. Mr. President, I ask unanimous consent that reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:
       At the end of the Instructions, add the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Marriage Tax Elimination 
     Act''.

     SEC. 2. COMBINED RETURN TO WHICH UNMARRIED RATES APPLY.

       (a) In General.--Subpart B of part II of subchapter A of 
     chapter 61 of the Internal Revenue Code of 1986 (relating to 
     income tax returns) is amended by inserting after section 
     6013 the following new section:

     ``SEC. 6013A. COMBINED RETURN WITH SEPARATE RATES.

       ``(a) General Rule.--A husband and wife may make a combined 
     return of income taxes under subtitle A under which--
       ``(1) a separate taxable income is determined for each 
     spouse by applying the rules provided in this section, and
       ``(2) the tax imposed by section 1 is the aggregate amount 
     resulting from applying the separate rates set forth in 
     section 1(c) to each such taxable income.
       ``(b) Treatment of Income.--For purposes of this section--
       ``(1) earned income (within the meaning of section 911(d)), 
     and any income received as a pension or annuity which arises 
     from an employer-employee relationship, shall be treated as 
     the income of the spouse who rendered the services, and
       ``(2) income from property shall be divided between the 
     spouses in accordance with their respective ownership rights 
     in such property.
       ``(c) Treatment of Deductions.--For purposes of this 
     section--
       ``(1) except as otherwise provided in this subsection, the 
     deductions allowed by section 62(a) shall be allowed to the 
     spouse treated as having the income to which such deductions 
     relate,
       ``(2) the deduction for retirement savings described in 
     paragraph (7) of section 62(a) shall be allowed to the spouse 
     for whose benefit the savings are maintained,
       ``(3) the deduction for alimony described in paragraph (10) 
     of section 62(a) shall be allowed to the spouse who has the 
     liability to pay the alimony,
       ``(4) the deduction referred to in paragraph (16) of 
     section 62(a) (relating to contributions to medical savings 
     accounts) shall be allowed to the spouse with respect to 
     whose employment or self-employment such account relates,
       ``(5) the deductions allowable by section 151 (relating to 
     personal exemptions) shall be determined by requiring each 
     spouse to claim 1 personal exemption,
       ``(6) section 63 shall be applied as if such spouses were 
     not married, and
       ``(7) each spouse's share of all other deductions 
     (including the deduction for personal exemptions under 
     section 151(c)) shall be determined by multiplying the 
     aggregate amount thereof by the fraction--
       ``(A) the numerator of which is such spouse's adjusted 
     gross income, and
       ``(B) the denominator of which is the combined adjusted 
     gross incomes of the 2 spouses.

     Any fraction determined under paragraph (7) shall be rounded 
     to the nearest percentage point.
       ``(d) Treatment of Credits.--Credits shall be determined 
     (and applied against the joint liability of the couple for 
     tax) as if the spouses had filed a joint return.
       ``(e) Treatment as Joint Return.--Except as otherwise 
     provided in this section or in the regulations prescribed 
     hereunder, for purposes of this title (other than sections 1 
     and 63(c)) a combined return under this section shall be 
     treated as a joint return.
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this section.''.
       (b) Unmarried Rate Made Applicable.--So much of subsection 
     (c) of section 1 of such Code as precedes the table is 
     amended to read as follows:
       ``(c) Separate or Unmarried Return Rate.--There is hereby 
     imposed on the taxable income of every individual (other than 
     a married individual (as defined in section 7703) filing a 
     joint return or a separate return, a surviving spouse as 
     defined in section 2(a), or a head of household as defined in 
     section 2(b)) a tax determined in accordance with the 
     following table:''.
       (c) Basic Standard Deduction for Unmarried Individuals Made 
     Applicable.--Subparagraph (C) of section 63(c)(2) of such 
     Code is amended to read as follows:
       ``(C) $3,000 in the case of an individual who is not--
       ``(i) a married individual filing a joint return or a 
     separate return,
       ``(ii) a surviving spouse, or
       ``(iii) a head of household, or''.
       (d) Clerical Amendment.--The table of sections for subpart 
     B of part II of subchapter A of chapter 61 of such Code is 
     amended by inserting after the item relating to section 6013 
     the following:

``Sec. 6013A. Combined return with separate rates.''
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning January 1, 2000.

  Mr. LOTT. I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.


                Amendment No. 3806 To Amendment No. 3805

  Mr. LOTT. I send a second-degree amendment to the desk.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Mississippi (Mr. Lott) proposes an 
     amendment numbered 3806 to amendment No. 3805.

  Mr. LOTT. Mr. President, I ask unanimous consent that reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       Strike all after the first word and insert the following:

     SHORT TITLE.

       This Act may be cited as the ``Marriage Tax Elimination 
     Act''.

     SEC. 2. COMBINED RETURN TO WHICH UNMARRIED RATES APPLY.

       (a) In General.--Subpart B of part II of subchapter A of 
     chapter 61 of the Internal Revenue Code of 1986 (relating to 
     income tax returns) is amended by inserting after section 
     6013 the following new section:

     ``SEC. 6013A. COMBINED RETURN WITH SEPARATE RATES.

       ``(a) General Rule.--A husband and wife may make a combined 
     return of income taxes under subtitle A under which--
       ``(1) a separate taxable income is determined for each 
     spouse by applying the rules provided in this section, and
       ``(2) the tax imposed by section 1 is the aggregate amount 
     resulting from applying the separate rates set forth in 
     section 1(c) to each such taxable income.
       ``(b) Treatment of Income.--For purposes of this section--
       ``(1) earned income (within the meaning of section 911(d)), 
     and any income received as a pension or annuity which arises 
     from an employer-employee relationship, shall be treated as 
     the income of the spouse who rendered the services, and
       ``(2) income from property shall be divided between the 
     spouses in accordance with their respective ownership rights 
     in such property.
       ``(c) Treatment of Deductions.--For purposes of this 
     section--
       ``(1) except as otherwise provided in this subsection, the 
     deductions allowed by section 62(a) shall be allowed to the 
     spouse treated as having the income to which such deductions 
     relate,
       ``(2) the deduction for retirement savings described in 
     paragraph (7) of section 62(a) shall be allowed to the spouse 
     for whose benefit the savings are maintained,
       ``(3) the deduction for alimony described in paragraph (10) 
     of section 62(a) shall be allowed to the spouse who has the 
     liability to pay the alimony,
       ``(4) the deduction referred to in paragraph (16) of 
     section 62(a) (relating to contributions to medical savings 
     accounts) shall be allowed to the spouse with respect to 
     whose employment or self-employment such account relates,
       ``(5) the deductions allowable by section 151 (relating to 
     personal exemptions) shall be determined by requiring each 
     spouse to claim 1 personal exemption,
       ``(6) section 63 shall be applied as if such spouses were 
     not married, and
       ``(7) each spouse's share of all other deductions 
     (including the deduction for personal exemptions under 
     section 151(c)) shall be determined by multiplying the 
     aggregate amount thereof by the fraction--
       ``(A) the numerator of which is such spouse's adjusted 
     gross income, and
       ``(B) the denominator of which is the combined adjusted 
     gross incomes of the 2 spouses.

     Any fraction determined under paragraph (7) shall be rounded 
     to the nearest percentage point.

[[Page S12130]]

       ``(d) Treatment of Credits.--Credits shall be determined 
     (and applied against the joint liability of the couple for 
     tax) as if the spouses had filed a joint return.
       ``(e) Treatment as Joint Return.--Except as otherwise 
     provided in this section or in the regulations prescribed 
     hereunder, for purposes of this title (other than sections 1 
     and 63(c)) a combined return under this section shall be 
     treated as a joint return.
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this section.''.
       (b) Unmarried Rate Made Applicable.--So much of subsection 
     (c) of section 1 of such Code as precedes the table is 
     amended to read as follows:
       ``(c) Separate or Unmarried Return Rate.--There is hereby 
     imposed on the taxable income of every individual (other than 
     a married individual (as defined in section 7703) filing a 
     joint return or a separate return, a surviving spouse as 
     defined in section 2(a), or a head of household as defined in 
     section 2(b)) a tax determined in accordance with the 
     following table:''.
       (c) Basic Standard Deduction for Unmarried Individuals Made 
     Applicable.--Subparagraph (C) of section 63(c)(2) of such 
     Code is amended to read as follows:
       ``(C) $3,000 in the case of an individual who is not--
       ``(i) a married individual filing a joint return or a 
     separate return,
       ``(ii) a surviving spouse, or
       ``(iii) a head of household, or''.
       (d) Clerical Amendment.--The table of sections for subpart 
     B of part II of subchapter A of chapter 61 of such Code is 
     amended by inserting after the item relating to section 6013 
     the following:

``Sec. 6013A. Combined return with separate rates.''

       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

                          ____________________