[Congressional Record (Bound Edition), Volume 146 (2000), Part 4]
[Senate]
[Pages 5189-5192]
[From the U.S. Government Publishing Office, www.gpo.gov]



                          AMENDMENTS SUBMITTED

                                 ______
                                 

          LEGISLATION INSTITUTING A FEDERAL FUELS TAX HOLIDAY

                                 ______
                                 

                   COLLINS AMENDMENTS NOS. 3088-3089

  (Ordered to lie on the table.)
  Ms. COLLINS submitted two amendments intended to be proposed by her 
to the bill (S. 2285) instituting a Federal fuels tax holiday; as 
follows:

                           Amendment No. 3088

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Fuels Tax Holiday 
     Act of 2000''.

     SEC. 2. TEMPORARY REDUCTION IN FUEL TAXES ON GASOLINE, DIESEL 
                   FUEL, KEROSENE, AVIATION FUEL, AND SPECIAL 
                   FUELS, BY 4.3 CENTS.

       (a) Temporary Reduction in Fuel Taxes.--During the 
     applicable period, each rate of tax referred to in subsection 
     (b) shall be reduced by 4.3 cents per gallon.
       (b) Rates of Tax.--The rates of tax referred to in this 
     subsection are the rates of tax otherwise applicable under--
       (1) paragraphs (1), (2), and (3) of section 4041(a) of the 
     Internal Revenue Code of 1986 (relating to special fuels),
       (2) subsection (m) of section 4041 of such Code (relating 
     to certain alcohol fuels),
       (3) subparagraph (C) of section 4042(b)(1) of such Code 
     (relating to tax on fuel used in commercial transportation on 
     inland waterways),
       (4) clauses (i), (ii), and (iii) of section 4081(a)(2)(A) 
     of such Code (relating to gasoline, diesel fuel, and 
     kerosene),
       (5) paragraph (1) of section 4091(b) of such Code (relating 
     to aviation fuel), and
       (6) paragraph (2) of section 4092(b) of such Code (relating 
     to fuel used in commercial aviation).
       (c) Special Reduction Rules.--
       (1) In general.--Subsection (a) shall be applied by 
     substituting for ``4.3 cents''--
       (A) ``3.2 cents'' in the case of fuel described in section 
     4041(a)(2)(B)(ii) of such Code (relating to liquefied 
     petroleum),
       (B) ``2.8 cents'' in the case of fuel described in section 
     4041(a)(2)(B)(iii) of such Code (relating to liquefied 
     natural gas),
       (C) ``48.54 cents'' in the case of fuel described in 
     section 4041(a)(3)(A) of such Code (relating to compressed 
     natural gas), and
       (D) ``2.15 cents'' in the case of fuel described in section 
     4041(m)(1)(A)(ii)(I) of such Code (relating to certain 
     alcohol fuel).
       (2) Conforming rules.--In the case of a reduction under 
     subsection (a)--
       (A) section 4081(c) of such Code shall be applied without 
     regard to paragraph (6) thereof,
       (B) section 4091(c) of such Code shall be applied without 
     regard to paragraph (4) thereof,
       (C) section 6421(f)(2) of such Code shall be applied by 
     disregarding ``and, in the case'' and all that follows,
       (D) section 6421(f)(3) of such Code shall be applied 
     without regard to subparagraph (B) thereof,
       (E) section 6427(l)(3) of such Code shall be applied 
     without regard to subparagraph (B) thereof, and
       (F) section 6427(l)(4) of such Code shall be applied 
     without regard to subparagraph (B) thereof.
       (d) Maintenance of trust funds deposits.--On April 16, 
     2000, the Secretary of the Treasury shall determine the 
     amount any Federal trust fund would have received in gross 
     receipts during the applicable period had this section not 
     been enacted. Such amount shall be appropriated and 
     transferred from the general fund to the applicable trust 
     fund in the manner in which such gross receipts would have 
     been transferred by the Secretary of the Treasury and such 
     amount shall be treated as taxes received in the Treasury 
     under the applicable section of the Internal Revenue Code of 
     1986 described in subsection (b).
       (e) Applicable Period.--For purposes of this section, the 
     term ``applicable period'' means the period beginning after 
     April 15, 2000, and ending before January 1, 2001.

     SEC. 3. FLOOR STOCKS CREDIT.

       (a) In General.--If--
       (1) before a tax reduction date, a tax referred to in 
     section 2(b) has been imposed on any liquid, and
       (2) on such date such liquid is held by a dealer and has 
     not been used and is intended for sale,
     there shall be credited (without interest) to the person who 
     paid such tax (hereafter in this section referred to as the 
     ``taxpayer'') against the taxpayer's subsequent semi-monthly 
     deposit of such tax an amount equal to the excess of the tax 
     paid by the taxpayer over the amount of such tax which would 
     be imposed on such liquid had the taxable event occurred on 
     the tax reduction date.
       (b) Certification Necessary To File Claim for Credit.--
       (1) In general.--In any case where liquid is held by a 
     dealer (other than the taxpayer) on the tax reduction date, 
     no credit amount with respect to such liquid shall be allowed 
     to the taxpayer under subsection (a) unless the taxpayer 
     files with the Secretary--
       (A) a certification that the taxpayer has given a credit to 
     such dealer with respect to such liquid against the dealer's 
     first purchase of liquid from the taxpayer subsequent to the 
     tax reduction date, and
       (B) a certification by such dealer that such dealer has 
     given a credit to a succeeding dealer (if any) with respect 
     to such liquid against the succeeding dealer's first purchase 
     of liquid from such dealer subsequent to the tax reduction 
     date.
       (2) Reasonableness of claims certified.--Any certification 
     made under paragraph (1) shall include an additional 
     certification that the claim for credit was reasonable based 
     on the taxpayer's or dealer's past business relationship with 
     the succeeding dealer.
       (c) Definitions.--For purposes of this section--
       (1) the terms ``dealer'' and ``held by a dealer'' have the 
     respective meanings given to such terms by section 6412 of 
     the Internal Revenue Code of 1986; except that the term 
     ``dealer'' includes a position holder, and
       (2) the term ``tax reduction date'' means April 16, 2000.
       (d) Certain Rules To Apply.--Rules similar to the rules of 
     subsections (b) and (c) of section 6412 of such Code shall 
     apply for purposes of this section.

     SEC. 4. FLOOR STOCKS TAX.

       (a) Imposition of Tax.--In the case of any liquid on which 
     a tax referred to in section 2(b) would have been imposed 
     during the applicable period but for the enactment of this 
     Act, and which is held on the floor stocks tax date by any 
     person, there is hereby imposed a floor stocks tax in an 
     amount equal to the excess of--
       (1) the tax referred to in section 2(b) which would be 
     imposed on such liquid had the taxable event occurred on the 
     floor stocks tax date, over
       (2) the amount of such tax previously paid (if any) with 
     respect to such liquid.
       (b) Liability for Tax and Method of Payment.--
       (1) Liability for tax.--A person holding a liquid on the 
     floor stocks tax date to which the tax imposed by subsection 
     (a) applies shall be liable for such tax.
       (2) Method of payment.--The tax imposed by subsection (a) 
     shall be paid in such manner as the Secretary shall 
     prescribe.
       (3) Time for payment.--The tax imposed by subsection (a) 
     shall be paid on or before the date which is 45 days after 
     the floor stocks tax date.
       (c) Definitions.--For purposes of this section--
       (1) Held by a person.--A liquid shall be considered as 
     ``held by a person'' if title thereto has passed to such 
     person (whether or not delivery to the person has been made).
       (2) Floor stocks tax date.--The term ``floor stocks tax 
     date'' means January 1, 2001.
       (3) Applicable period.--The term ``applicable period'' 
     means the period beginning after April 15, 2000, and ending 
     before January 1, 2001.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury or the Secretary's delegate.
       (d) Exception for Exempt Uses.--The tax imposed by 
     subsection (a) shall not apply to any liquid held by any 
     person exclusively for any use to the extent a credit or 
     refund of the tax referred to in section 2(b) is allowable 
     for such use.
       (e) Exception for Fuel Held in Vehicle Tank.--No tax shall 
     be imposed by subsection (a) on any liquid held in the tank 
     of a motor vehicle, motorboat, vessel, or aircraft.
       (f) Exception for Certain Amounts of Fuel.--
       (1) In general.--No tax shall be imposed by subsection (a) 
     on any liquid held on the floor stocks tax date by any person 
     if the aggregate amount of such liquid held by such person on 
     such date does not exceed 2,000 gallons. The preceding 
     sentence shall apply only if such person submits to the 
     Secretary (at the time and in the manner required by the 
     Secretary) such information as the Secretary shall require 
     for purposes of this paragraph.
       (2) Exempt fuel.--For purposes of paragraph (1), there 
     shall not be taken into account any liquid held by any person 
     which is exempt from the tax imposed by subsection (a) by 
     reason of subsection (d) or (e).
       (3) Controlled groups.--For purposes of this subsection--

[[Page 5190]]

       (A) Corporations.--
       (i) In general.--All persons treated as a controlled group 
     shall be treated as 1 person.
       (ii) Controlled group.--The term ``controlled group'' has 
     the meaning given to such term by subsection (a) of section 
     1563 of the Internal Revenue Code of 1986; except that for 
     such purposes the phrase ``more than 50 percent'' shall be 
     substituted for the phrase ``at least 80 percent'' each place 
     it appears in such subsection.
       (B) Nonincorporated persons under common control.--Under 
     regulations prescribed by the Secretary, principles similar 
     to the principles of subparagraph (A) shall apply to a group 
     of persons under common control if 1 or more of such persons 
     is not a corporation.
       (g) Other Law Applicable.--All provisions of law, including 
     penalties, applicable with respect to the taxes imposed by 
     chapter 31 or 32 of such Code shall, insofar as applicable 
     and not inconsistent with the provisions of this section, 
     apply with respect to the floor stock taxes imposed by 
     subsection (a) to the same extent as if such taxes were 
     imposed by such chapter.

     SEC. 5. BENEFITS OF TAX REDUCTION SHOULD BE PASSED ON TO 
                   CONSUMERS.

       (a) Passthrough to Consumers.--
       (1) Sense of congress.--It is the sense of Congress that--
       (A) consumers immediately receive the benefit of the 
     reduction in taxes under this Act, and
       (B) transportation motor fuels producers and other dealers 
     take such actions as necessary to reduce transportation motor 
     fuels prices to reflect such reduction, including immediate 
     credits to customer accounts representing tax refunds allowed 
     as credits against excise tax deposit payments under the 
     floor stocks refund provisions of this Act.
       (2) Study.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct a study of the reduction of taxes under 
     this Act to determine whether there has been a passthrough of 
     such reduction.
       (B) Report.--Not later than September 30, 2000, the 
     Comptroller General of the United States shall report to the 
     Committee on Finance of the Senate and the Committee on Ways 
     and Means of the House of Representatives the results of the 
     study conducted under subparagraph (A).
                                  ____


                           Amendment No. 3089

       Strike all after the first word and insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Fuels Tax Holiday 
     Act of 2000''.

     SEC. 2. TEMPORARY REDUCTION IN FUEL TAXES ON GASOLINE, DIESEL 
                   FUEL, KEROSENE, AVIATION FUEL, AND SPECIAL 
                   FUELS, BY 4.3 CENTS.

       (a) Temporary Reduction in Fuel Taxes.--During the 
     applicable period, each rate of tax referred to in subsection 
     (b) shall be reduced by 4.3 cents per gallon.
       (b) Rates of Tax.--The rates of tax referred to in this 
     subsection are the rates of tax otherwise applicable under--
       (1) paragraphs (1), (2), and (3) of section 4041(a) of the 
     Internal Revenue Code of 1986 (relating to special fuels),
       (2) subsection (m) of section 4041 of such Code (relating 
     to certain alcohol fuels),
       (3) subparagraph (C) of section 4042(b)(1) of such Code 
     (relating to tax on fuel used in commercial transportation on 
     inland waterways),
       (4) clauses (i), (ii), and (iii) of section 4081(a)(2)(A) 
     of such Code (relating to gasoline, diesel fuel, and 
     kerosene),
       (5) paragraph (1) of section 4091(b) of such Code (relating 
     to aviation fuel), and
       (6) paragraph (2) of section 4092(b) of such Code (relating 
     to fuel used in commercial aviation).
       (c) Special Reduction Rules.--
       (1) In general.--Subsection (a) shall be applied by 
     substituting for ``4.3 cents''--
       (A) ``3.2 cents'' in the case of fuel described in section 
     4041(a)(2)(B)(ii) of such Code (relating to liquefied 
     petroleum),
       (B) ``2.8 cents'' in the case of fuel described in section 
     4041(a)(2)(B)(iii) of such Code (relating to liquefied 
     natural gas),
       (C) ``48.54 cents'' in the case of fuel described in 
     section 4041(a)(3)(A) of such Code (relating to compressed 
     natural gas), and
       (D) ``2.15 cents'' in the case of fuel described in section 
     4041(m)(1)(A)(ii)(I) of such Code (relating to certain 
     alcohol fuel).
       (2) Conforming rules.--In the case of a reduction under 
     subsection (a)--
       (A) section 4081(c) of such Code shall be applied without 
     regard to paragraph (6) thereof,
       (B) section 4091(c) of such Code shall be applied without 
     regard to paragraph (4) thereof,
       (C) section 6421(f)(2) of such Code shall be applied by 
     disregarding ``and, in the case'' and all that follows,
       (D) section 6421(f)(3) of such Code shall be applied 
     without regard to subparagraph (B) thereof,
       (E) section 6427(l)(3) of such Code shall be applied 
     without regard to subparagraph (B) thereof, and
       (F) section 6427(l)(4) of such Code shall be applied 
     without regard to subparagraph (B) thereof.
       (d) Maintenance of trust funds deposits.--On April 16, 
     2000, the Secretary of the Treasury shall determine the 
     amount any Federal trust fund would have received in gross 
     receipts during the applicable period had this section not 
     been enacted. Such amount shall be appropriated and 
     transferred from the general fund to the applicable trust 
     fund in the manner in which such gross receipts would have 
     been transferred by the Secretary of the Treasury and such 
     amount shall be treated as taxes received in the Treasury 
     under the applicable section of the Internal Revenue Code of 
     1986 described in subsection (b).
       (e) Applicable Period.--For purposes of this section, the 
     term ``applicable period'' means the period beginning after 
     April 15, 2000, and ending before January 1, 2001.

     SEC. 3. FLOOR STOCKS CREDIT.

       (a) In General.--If--
       (1) before a tax reduction date, a tax referred to in 
     section 2(b) has been imposed on any liquid, and
       (2) on such date such liquid is held by a dealer and has 
     not been used and is intended for sale,
     there shall be credited (without interest) to the person who 
     paid such tax (hereafter in this section referred to as the 
     ``taxpayer'') against the taxpayer's subsequent semi-monthly 
     deposit of such tax an amount equal to the excess of the tax 
     paid by the taxpayer over the amount of such tax which would 
     be imposed on such liquid had the taxable event occurred on 
     the tax reduction date.
       (b) Certification Necessary To File Claim for Credit.--
       (1) In general.--In any case where liquid is held by a 
     dealer (other than the taxpayer) on the tax reduction date, 
     no credit amount with respect to such liquid shall be allowed 
     to the taxpayer under subsection (a) unless the taxpayer 
     files with the Secretary--
       (A) a certification that the taxpayer has given a credit to 
     such dealer with respect to such liquid against the dealer's 
     first purchase of liquid from the taxpayer subsequent to the 
     tax reduction date, and
       (B) a certification by such dealer that such dealer has 
     given a credit to a succeeding dealer (if any) with respect 
     to such liquid against the succeeding dealer's first purchase 
     of liquid from such dealer subsequent to the tax reduction 
     date.
       (2) Reasonableness of claims certified.--Any certification 
     made under paragraph (1) shall include an additional 
     certification that the claim for credit was reasonable based 
     on the taxpayer's or dealer's past business relationship with 
     the succeeding dealer.
       (c) Definitions.--For purposes of this section--
       (1) the terms ``dealer'' and ``held by a dealer'' have the 
     respective meanings given to such terms by section 6412 of 
     the Internal Revenue Code of 1986; except that the term 
     ``dealer'' includes a position holder, and
       (2) the term ``tax reduction date'' means April 16, 2000.
       (d) Certain Rules To Apply.--Rules similar to the rules of 
     subsections (b) and (c) of section 6412 of such Code shall 
     apply for purposes of this section.

     SEC. 4. FLOOR STOCKS TAX.

       (a) Imposition of Tax.--In the case of any liquid on which 
     a tax referred to in section 2(b) would have been imposed 
     during the applicable period but for the enactment of this 
     Act, and which is held on the floor stocks tax date by any 
     person, there is hereby imposed a floor stocks tax in an 
     amount equal to the excess of--
       (1) the tax referred to in section 2(b) which would be 
     imposed on such liquid had the taxable event occurred on the 
     floor stocks tax date, over
       (2) the amount of such tax previously paid (if any) with 
     respect to such liquid.
       (b) Liability for Tax and Method of Payment.--
       (1) Liability for tax.--A person holding a liquid on the 
     floor stocks tax date to which the tax imposed by subsection 
     (a) applies shall be liable for such tax.
       (2) Method of payment.--The tax imposed by subsection (a) 
     shall be paid in such manner as the Secretary shall 
     prescribe.
       (3) Time for payment.--The tax imposed by subsection (a) 
     shall be paid on or before the date which is 45 days after 
     the floor stocks tax date.
       (c) Definitions.--For purposes of this section--
       (1) Held by a person.--A liquid shall be considered as 
     ``held by a person'' if title thereto has passed to such 
     person (whether or not delivery to the person has been made).
       (2) Floor stocks tax date.--The term ``floor stocks tax 
     date'' means January 1, 2001.
       (3) Applicable period.--The term ``applicable period'' 
     means the period beginning after April 15, 2000, and ending 
     before January 1, 2001.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury or the Secretary's delegate.
       (d) Exception for Exempt Uses.--The tax imposed by 
     subsection (a) shall not apply to any liquid held by any 
     person exclusively for any use to the extent a credit or 
     refund of the tax referred to in section 2(b) is allowable 
     for such use.

[[Page 5191]]

       (e) Exception for Fuel Held in Vehicle Tank.--No tax shall 
     be imposed by subsection (a) on any liquid held in the tank 
     of a motor vehicle, motorboat, vessel, or aircraft.
       (f) Exception for Certain Amounts of Fuel.--
       (1) In general.--No tax shall be imposed by subsection (a) 
     on any liquid held on the floor stocks tax date by any person 
     if the aggregate amount of such liquid held by such person on 
     such date does not exceed 2,000 gallons. The preceding 
     sentence shall apply only if such person submits to the 
     Secretary (at the time and in the manner required by the 
     Secretary) such information as the Secretary shall require 
     for purposes of this paragraph.
       (2) Exempt fuel.--For purposes of paragraph (1), there 
     shall not be taken into account any liquid held by any person 
     which is exempt from the tax imposed by subsection (a) by 
     reason of subsection (d) or (e).
       (3) Controlled groups.--For purposes of this subsection--
       (A) Corporations.--
       (i) In general.--All persons treated as a controlled group 
     shall be treated as 1 person.
       (ii) Controlled group.--The term ``controlled group'' has 
     the meaning given to such term by subsection (a) of section 
     1563 of the Internal Revenue Code of 1986; except that for 
     such purposes the phrase ``more than 50 percent'' shall be 
     substituted for the phrase ``at least 80 percent'' each place 
     it appears in such subsection.
       (B) Nonincorporated persons under common control.--Under 
     regulations prescribed by the Secretary, principles similar 
     to the principles of subparagraph (A) shall apply to a group 
     of persons under common control if 1 or more of such persons 
     is not a corporation.
       (g) Other Law Applicable.--All provisions of law, including 
     penalties, applicable with respect to the taxes imposed by 
     chapter 31 or 32 of such Code shall, insofar as applicable 
     and not inconsistent with the provisions of this section, 
     apply with respect to the floor stock taxes imposed by 
     subsection (a) to the same extent as if such taxes were 
     imposed by such chapter.

     SEC. 5. BENEFITS OF TAX REDUCTION SHOULD BE PASSED ON TO 
                   CONSUMERS.

       (a) Passthrough to Consumers.--
       (1) Sense of congress.--It is the sense of Congress that--
       (A) consumers immediately receive the benefit of the 
     reduction in taxes under this Act, and
       (B) transportation motor fuels producers and other dealers 
     take such actions as necessary to reduce transportation motor 
     fuels prices to reflect such reduction, including immediate 
     credits to customer accounts representing tax refunds allowed 
     as credits against excise tax deposit payments under the 
     floor stocks refund provisions of this Act.
       (2) Study.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct a study of the reduction of taxes under 
     this Act to determine whether there has been a passthrough of 
     such reduction.
       (B) Report.--Not later than September 30, 2000, the 
     Comptroller General of the United States shall report to the 
     Committee on Finance of the Senate and the Committee on Ways 
     and Means of the House of Representatives the results of the 
     study conducted under subparagraph (A).
                                 ______
                                 

                MARRIAGE TAX PENALTY RELIEF ACT OF 2000

                                 ______
                                 

                        ROTH AMENDMENT NO. 3090

  Mr. LOTT (for Mr. Roth) proposed an amendment to the bill (H.R. 6) to 
amend the Internal Revenue Code of 1986 to eliminate the marriage 
penalty by providing that the income tax rate bracket amounts, and the 
amount of the standard deduction, for joint returns shall be twice the 
amounts applicble to unmarried individuals; as follows:

       Strike all after the enacting clause and insert:

     SECTION 1. SHORT TITLE, ETC.

       (a) Short Title.--This Act may be cited as the ``Marriage 
     Tax Relief Act of 2000''.
       (b) Section 15 Not To Apply.--No amendment made by this Act 
     shall be treated as a change in a rate of tax for purposes of 
     section 15 of the Internal Revenue Code of 1986.

     SEC. 2. ELIMINATION OF MARRIAGE PENALTY IN STANDARD 
                   DEDUCTION.

       (a) In General.--Paragraph (2) of section 63(c) of the 
     Internal Revenue Code of 1986 (relating to standard 
     deduction) is amended--
       (1) by striking ``$5,000'' in subparagraph (A) and 
     inserting ``200 percent of the dollar amount in effect under 
     subparagraph (C) for the taxable year'';
       (2) by adding ``or'' at the end of subparagraph (B);
       (3) by striking ``in the case of'' and all that follows in 
     subparagraph (C) and inserting ``in any other case.''; and
       (4) by striking subparagraph (D).
       (b) Technical Amendments.--
       (1) 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''.
       (2) 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).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 3. PHASEOUT OF MARRIAGE PENALTY IN 15-PERCENT AND 28-
                   PERCENT RATE BRACKETS.

       (a) In General.--Subsection (f ) of section 1 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) Phaseout of marriage penalty in 15-percent and 28-
     percent rate brackets.--
       ``(A) In general.--With respect to taxable years beginning 
     after December 31, 2001, in prescribing the tables under 
     paragraph (1)--
       ``(i) the maximum taxable income amount in the 15-percent 
     rate bracket, the minimum and maximum taxable income amounts 
     in the 28-percent rate bracket, and the minimum taxable 
     income amount in the 31-percent rate bracket in the table 
     contained in subsection (a) shall be the applicable 
     percentage of the comparable taxable income amounts 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) Applicable percentage.--For purposes of subparagraph 
     (A), the applicable percentage shall be determined in 
     accordance with the following table:

``For taxable years beginning in calendarThe applicable percentage is--
        2002.....................................................170.3 
        2003.....................................................173.8 
        2004.....................................................180.0 
        2005.....................................................183.2 
        2006.....................................................185.0 
        2007 and thereafter.....................................200.0. 

       ``(C) 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.''.
       (b) Technical Amendments.--
       (1) Subparagraph (A) of section 1(f )(2) of such Code is 
     amended by inserting ``except as provided in paragraph (8),'' 
     before ``by increasing''.
       (2) The heading for subsection (f ) of section 1 of such 
     Code is amended by inserting ``Phaseout of Marriage Penalty 
     in 15-Percent and 28-Percent Rate Brackets;'' before 
     ``Adjustments''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 4. MARRIAGE PENALTY RELIEF FOR EARNED INCOME CREDIT.

       (a) In General.--Paragraph (2) of section 32(b) of the 
     Internal Revenue Code of 1986 (relating to percentages and 
     amounts) is amended--
       (1) by striking ``Amounts.--The earned'' and inserting 
     ``Amounts.--
       ``(A) In general.--Subject to subparagraph (B), the 
     earned''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) Joint returns.--In the case of a joint return, the 
     phaseout amount determined under subparagraph (A) shall be 
     increased by $2,500.''.
       (b) Inflation Adjustment.--Paragraph (1)(B) of section 32( 
     j) of such Code (relating to inflation adjustments) is 
     amended to read as follows:
       ``(B) the cost-of-living adjustment determined under 
     section 1(f )(3) for the calendar year in which the taxable 
     year begins, determined--
       ``(i) in the case of amounts in subsections (b)(2)(A) and 
     (i)(1), by substituting `calendar year 1995' for `calendar 
     year 1992' in subparagraph (B) thereof, and
       ``(ii) in the case of the $2,500 amount in subsection 
     (b)(2)(B), by substituting `calendar year 2000' for `calendar 
     year 1992' in subparagraph (B) of such section 1.''.
       (c) Rounding.--Section 32( j)(2)(A) of such Code (relating 
     to rounding) is amended by striking ``subsection (b)(2)'' and 
     inserting ``subsection (b)(2)(A) (after being increased under 
     subparagraph (B) thereof)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 5. PRESERVE FAMILY TAX CREDITS FROM THE ALTERNATIVE 
                   MINIMUM TAX.

       (a) In General.--Subsection (a) of section 26 of the 
     Internal Revenue Code of 1986 (relating to limitation based 
     on tax liability; definition of tax liability) is amended to 
     read as follows:
       ``(a) Limitation Based on Amount of Tax.--The aggregate 
     amount of credits allowed by this subpart for the taxable 
     year shall not exceed the sum of--
       ``(1) the taxpayer's regular tax liability for the taxable 
     year reduced by the foreign tax credit allowable under 
     section 27(a), and

[[Page 5192]]

       ``(2) the tax imposed for the taxable year by section 
     55(a).''.
       (b) Conforming Amendments.--
       (1) Subsection (d) of section 24 of such Code is amended by 
     striking paragraph (2) and by redesignating paragraph (3) as 
     paragraph (2).
       (2) Section 32 of such Code is amended by striking 
     subsection (h).
       (3) Section 904 of such Code is amended by striking 
     subsection (h) and by redesignating subsections (i), (j), and 
     (k) as subsections (h), (i), and (j), respectively.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.
                                 ______
                                 

                       GRAHAM AMENDMENT NO. 3091

  (Ordered to lie on the table.)
  Mr. GRAHAM submitted an amendment to be proposed by him to the bill, 
H.R. 6, supra; as follows:

       At the end add the following:

     SEC. __. DELAY IN EFFECTIVE DATE.

       (a) Findings.--The Senate finds the following:
       (1) The social security program is the foundation upon 
     which millions of Americans rely for income during retirement 
     or in the event of disability.
       (2) For nearly two-thirds of seniors living alone, social 
     security comprises 50 percent or more of their total income.
       (3) The medicare program provides essential medical care 
     for tens of millions of older and disabled Americans.
       (4) During the 35-year history of the program, medicare has 
     helped lift elderly Americans out of poverty and has improved 
     and extended their lives.
       (5) According to the 2000 annual report of the Board of 
     Trustees of the social security trust funds--
       (A) beginning in 2016, payroll tax revenue will fall short 
     of the amount needed to pay current benefits, necessitating 
     the use of interest earned on trust fund assets and then the 
     eventual redemption of those assets; and
       (B) assets of the combined retirement and disability trust 
     funds will be exhausted in 2037.
       (6) According to the 2000 annual report of the Board of 
     Trustees of the social security trust funds, assets in the 
     medicare health insurance trust fund will be exhausted in 
     2023.
       (7) The Congressional Budget Office has prepared 3 
     estimates of the non-social security surplus for the next 10 
     years which range in size from $838,000,000,000 to 
     $1,918,000,000,000.
       (8) The presence of non-social security surpluses present 
     Congress with the opportunity to address the long-term 
     funding shortfall facing the social security and medicare 
     programs.
       (b) Delay in Effective Date.--Notwithstanding any other 
     provision of, or amendment made by, this Act, no such 
     provision or amendment shall take effect until legislation 
     has been enacted that extends the solvency of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund under section 201 of the 
     Social Security Act through 2075 and the Federal Hospital 
     Insurance Trust Fund under part A of title XVIII of such Act 
     through 2025.

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