[House Report 106-495]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-495

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  PROVIDING FOR THE CONSIDERATION OF H.R. 6, THE MARRIAGE TAX PENALTY 
                               RELIEF ACT

                                _______
                                

  February 8, 2000.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

Ms. Pryce of Ohio, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 419]

    The Committee on Rules, having had under consideration 
House Resolution 419, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                summary of provisions of the resolution

    The resolution provides for the consideration, in the 
House, of H.R. 6, the Marriage Tax Penalty Relief Act of 2000, 
under a structured rule. The rule provides two hours of debate 
equally divided and controlled by the chairman and ranking 
minority member of the Committee on Ways and Means. The rule 
waives all points of order against consideration of the bill.
    The rule provides that the amendment recommended by the 
Committee on Ways and Means now printed in the bill be 
considered as adopted upon adoption of the resolution. The rule 
further provides for consideration of the amendment in the 
nature of substitute, printed in this report, if offered by 
Representative Rangel or his designee, which shall be 
considered as read and shall be separately debatable for one 
hour equally divided and controlled by the proponent and an 
opponent. Finally, the rule provides one motion to recommit 
with our without instructions.
    The waiver of all points of order against consideration of 
the bill includes a waiver of section 302 (prohibiting 
consideration of legislation providing new budget authority in 
excess of a committee's allocation of such authority) and 
section 303 (prohibiting consideration of legislation, as 
reported, providing new budget authority, changes in revenues, 
or changes in the public debt for a fiscal year until the 
budget resolution for that year has been agreed to) of the 
Congressional Budget Act of 1974.
    The waiver of section 302 is necessary because according to 
the Joint Committee on Taxation the bill would increase direct 
spending (the outlay effect of the EIC changes) by $10 billion 
over the 2001-2010 period. The waiver of section 303 is 
necessary because Congress has not yet completed consideration 
of a budget resolution for FY 2001 and according to the Joint 
Committee on Taxation the bill would decrease revenues by $4 
billion in FY 2001 and increase direct spending by $5 million 
in FY 2001.
    The waiver of all points of order against consideration of 
the minority substitute may be necessary for the same general 
reasons as are necessary for the bill.

   Summary of Amendment Made in Order Under the Rule for H.R. 6, the 
                Marriage Tax Penalty Relief Act of 2000

    Rangel: Amendment in the nature of a substitute that 
increases the standard deduction for joint returns so that it 
is equal to twice the standard deduction allowed for single 
taxpayers; adjusts the alternative minimum tax to provide $10 
billion more in tax relief to low and moderate-income 
taxpayers; increases the income level at which the credit 
begins to phase out by $2,000 in 2001 and by $2,500 in 2002 and 
thereafter; repeals the current law reduction in EITC and 
refundable child credit by the amount of the minimum tax and 
makes the tax reductions contained in the substitute contingent 
on action to extend Social Security solvency until 2050, action 
to extend Medicare solvency to 2030, and a certification that 
the publicly-held National debt is projected to be eliminated 
by 2013. If those contingencies are satisfied, the substitute 
would provide $89 billion of tax relief over ten years. (60 
minutes)
    Text of the amendment made in order under the rule:

 An Amendment To Be Offered by Representative Rangel of New York, or a 
                   Designee, Debatable for 60 Minutes

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Marriage Tax Penalty Relief 
Act of 2000''.

SEC. 2. MARRIAGE PENALTY RELIEF.

  (a) 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 ``twice 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) Increase allowed as deduction in determining 
        minimum tax.--Subparagraph (E) of section 56(b)(1) of 
        such Code is amended by adding at the end the following 
        new sentence: ``The preceding sentence shall not apply 
        to so much of the standard deduction under subparagraph 
        (A) of section 63(c)(2) as exceeds the amount which be 
        such deduction but for the amendment made by section 
        2(a)(1) of the Marriage Tax Penalty Relief Act of 2000.
          (3) 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).''.
  (b) Earned Income Credit.--
          (1) In general.--Subsection (a) of section 32 of such 
        Code (relating to credit for earned income) is amended 
        by adding at the end the following new paragraph:
          ``(3) Reduction of marriage penalty.--
                  ``(A) In general.--In the case of a joint 
                return, the phaseout amount under this section 
                shall be such amount (determined without regard 
                to this paragraph) increased by $2,500 ($2,000 
                in the case of taxable years beginning during 
                2001).
                  ``(B) Inflation adjustment.--In the case of 
                any taxable year beginning in a calendar year 
                after 2002, the $2,500 amount contained in 
                subparagraph (A) shall be increased by an 
                amount equal to the product of--
                          ``(i) such dollar amount, and
                          ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for 
                        the calendar year in which the taxable 
                        year begins, determined by substituting 
                        `calendar year 2001' for `calendar year 
                        1992' in subparagraph (B) thereof.
                If any increase determined under the preceding 
                sentence is not a multiple of $50, such 
                increase shall be rounded to the next lowest 
                multiple of $50.''
          (2) Repeal of reduction of refundable tax credits.--
                  (A) Subsection (d) of section 24 of such Code 
                is amended by striking paragraph (2) and 
                redesignating paragraph (3) as paragraph (2).
                  (B) Section 32 of such Code is amended by 
                striking subsection (h).
  (c) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2000.

SEC. 3. TAX REDUCTIONS CONTINGENT ON SOCIAL SECURITY AND MEDICARE 
                    SOLVENCY CERTIFICATIONS.

  (a) In General.--Notwithstanding any other provision of this 
Act, no provision of this Act (or amendment made thereby) shall 
take effect until there is--
          (1) a social security certification,
          (2) a Medicare certification, and
          (3) a public debt elimination certification.
  (b) Definitions.--For purposes of this subsection--
          (1) Social security solvency certification.--The term 
        `social security solvency certification' means a 
        certification by the Board of Trustees of the Social 
        Security Trust Funds that the Federal Old-Age and 
        Survivors Insurance Trust Fund and the Federal 
        Disability Insurance Trust Fund are in actuarial 
        balance until the year 2050.
          (2) Medicare solvency certification.--The term 
        `Medicare solvency certification' means a certification 
        by the Board of Trustees of the Federal Hospital 
        Insurance Trust Fund that such Trust Fund is in 
        actuarial balance until the year 2030.
          (3) Public debt elimination certification.--There is 
        a public debt elimination certification if the Director 
        of the Office of Management and Budget certifies that, 
        taking into account the tax reductions made by this Act 
        and other legislation enacted during calendar year 
        2000, the national debt held by the public is projected 
        to be eliminated by the year 2013.

                                  
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