[House Report 106-726]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-726

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PROVIDING FOR THE CONSIDERATION OF H.R. 4810, THE MARRIAGE TAX PENALTY 
                   RELIEF RECONCILIATION ACT OF 2000

                                _______
                                

   July 11, 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. 545]

    The Committee on Rules, having had under consideration 
House Resolution 545, 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. 4810, the Marriage Tax Penalty Relief 
Reconciliation Act of 2000, under a modified closed rule. The 
rule provides one hour 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 for consideration of the amendment in the 
nature of a 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. The rule waives all points of order against 
consideration of the amendment in the nature of a substitute. 
Finally, the rule provides one motion to recommit with or 
without instructions.

         summary of the amendment made in order under the rule

    Rangel--Amendment in the nature of a substitute. The 
substitute increases the standard deduction for joint returns 
so that it is equal to twice the standard deduction for single 
taxpayers; adjusts the alternative minimum tax so that it would 
not disallow the full benefit of the increase in the standard 
deduction; increases the income level at which the earned 
income credit (EIC) begins to phase out by $2,000 in 2001 and 
by $2,500 on 2002 and thereafter; and repeals the current law 
reduction in the EIC and refundable child credit by the amount 
of the minimum tax. (60 Minutes)

               text of amendment made in order under rule

1. 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 
Reconciliation Act of 2000''.

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 ``twice 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) 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) of the Marriage Tax Penalty Relief 
Reconciliation Act of 2000.
  (c) 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).''.
  (d) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2000.

SEC. 3. MARRIAGE PENALTY RELIEF FOR EARNED INCOME CREDIT.

  (a) In General.--Subsection (a) of section 32 of the Internal 
Revenue Code of 1986 (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.''
  (b) Repeal of Reduction of Refundable Tax Credits.--
          (1) Subsection (d) of section 24 of such Code is 
        amended by striking paragraph (2) and redesignating 
        paragraph (3) as paragraph (2).
          (2) 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.

                                
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