[House Report 108-470]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 108-470
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PROVIDING FOR CONSIDERATION OF H.R. 4181--TO AMEND THE INTERNAL REVENUE
CODE OF 1986 TO PERMANENTLY EXTEND THE INCREASED STANDARD DEDUCTION,
AND THE 15-PERCENT INDIVIDUAL INCOME TAX RATE BRACKET EXPANSION, FOR
MARRIED TAXPAYERS FILING JOINT RETURNS
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April 27, 2004.--Referred to the House Calendar and ordered to be
printed
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Mrs. Myrick, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 607]
The Committee on Rules, having had under consideration
House Resolution 607, 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 of H.R. 4181,
to amend the Internal Revenue Code of 1986 to permanently
extend the increased standard deduction, and the 15-percent
individual income tax rate bracket expansion, for married
taxpayers filing joint returns, under a modified closed rule.
The rule provides one hour of debate in the House equally
divided and controlled by the chairman and ranking minority
member of the Committee on Ways and Means.
The rule provides that the amendment printed in part A of
this report shall be considered as adopted, and that the bill
shall be considered as read. The rule provides for
consideration of the amendment printed in part B of this
report, if offered by Representative Rangel of New York 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 the amendment printed in part B of
this report.
Finally, the rule provides one motion to recommit with or
without instructions.
PART A--SUMMARY OF AMENDMENT CONSIDERED AS ADOPTED
Makes permanent the Economic Growth and Tax Relief
Reconciliation Act of 2001 increase in the phase out of the
earned income credit for joint filers, in addition to making
permanent the increased standard deduction and the broader 15%
bracket for joint filers. Under current law, the phase out
range for joint filers will increase by $2,000 in 2005, 2006
and 2007 and to $3,000 for tax years after 2007. The earned
income credit phase out will sunset under the 2001 act in 2010.
PART B--SUMMARY OF AMENDMENT MADE IN ORDER
(Summary derived from information provided by the amendment
sponsor.)
Rangel: Amendment in the Nature of a Substitute. Makes
permanent the marriage penalty provisions related to the
standard deduction and 15% bracket. Accelerates and makes
permanent marriage penalty relief for low-income working
families receiving the benefits of the earned income tax
credit. Contains provisions to ensure that the minimum tax will
not deny any of the promised benefits. Its cost would be offset
by eliminating some of the recent tax cuts enjoyed by families
with incomes over $1 million.
PART A--TEXT OF AMENDMENT CONSIDERED AS ADOPTED
Page 4, strike lines 11 through 14 (section 3 of the bill)
and insert the following:
SEC. 3. REPEAL OF SUNSET.
Title IX of the Economic Growth and Tax Relief Reconciliation
Act of 2001 shall not apply to the amendments made by title III
of such Act.
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PART B--TEXT OF AMENDMENT MADE IN ORDER
Strike all after the enacting clause and insert the
following:
SECTION 1. EXTENSION OF INCREASED STANDARD DEDUCTION FOR MARRIED
TAXPAYERS FILING JOINT RETURNS.
(a) In General.--Paragraph (2) of section 63(c) of the
Internal Revenue Code of 1986 (relating to basic standard
deduction) is amended to read as follows:
``(2) Basic standard deduction.--For purposes of
paragraph (1), the basic standard deduction is--
``(A) 200 percent of the dollar amount in
effect under subparagraph (C) for the taxable
year in the case of--
``(i) a joint return, or
``(ii) a surviving spouse (as defined
in section 2(a)),
``(B) $4,400 in the case of a head of
household (as defined in section 2(b)), or
``(C) $3,000 in any other case.''.
(b) Conforming Amendments.--
(1) Section 63(c)(4) of such Code is amended by
striking ``(2)(D)'' each place it occurs and inserting
``(2)(C)''.
(2) Section 63(c) of such Code is amended by striking
paragraph (7).
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2004.
SEC. 2. EXTENSION OF INCREASED EARNED INCOME CREDIT FOR MARRIED
TAXPAYERS FILING JOINT RETURNS.
(a) In General.--Subparagraph (B) of section 32(b)(2) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(B) Joint returns.--In the case of a joint
return filed by an eligible individual and such
individual's spouse, the phaseout amount
determined under subparagraph (A) shall be
increased by $3,000.''
(b) Effective Date.--The amendment made by this section shall
apply to taxable years beginning after December 31, 2004.
SEC. 3. EXTENSION OF 15-PERCENT INDIVIDUAL INCOME TAX RATE BRACKET
EXPANSION FOR MARRIED TAXPAYERS FILING JOINT
RETURNS.
(a) In General.--Paragraph (8) of section 1(f ) of the
Internal Revenue Code of 1986 (relating to phaseout of marriage
penalty in 15-percent bracket) is amended to read as follows:
``(8) Elimination of marriage penalty in 15-percent
bracket.--With respect to taxable years beginning after
December 31, 2004, in prescribing the tables under
paragraph (1)--
``(A) the maximum taxable income in the 15-
percent rate bracket in the table contained in
subsection (a) (and the minimum taxable income
in the next higher taxable income bracket in
such table) shall be 200 percent of the maximum
taxable income in the 15-percent rate bracket
in the table contained in subsection (c) (after
any other adjustment under this subsection),
and
``(B) the comparable taxable income amounts
in the table contained in subsection (d) shall
be \1/2\ of the amounts determined under
subparagraph (A).''.
(b) Conforming Amendment.--The heading for subsection (f ) of
section 1 of such Code is amended by striking ``Phaseout'' and
inserting ``Elimination''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2004.
SEC. 4. BENEFITS EXTENSION NOT TO INCREASE FEDERAL BUDGET DEFICIT.
(a) In General.--Section 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subsection:
``(j) Additional Tax on High Income Taxpayers.--The amount
determined under subsection (a), (b), (c), or (d), as the case
may be, shall be increased by 3.6 percent of so much of
adjusted gross income as exceeds $1,000,000 in the case of
individuals to whom subsection (a) applies ($500,000 in any
other case).''
(b) Effective Date.--The amendment made by this section shall
apply to taxable years beginning after December 31, 2004.
SEC. 5. REPEAL OF SUNSET APPLICABLE TO BENEFITS EXTENDED BY THIS ACT.
Title IX of the Economic Growth and Tax Relief Reconciliation
Act of 2001 shall not apply to the amendments made by sections
301, 302, and 303 of such Act.
SEC. 6. BENEFITS OF ACT NOT DENIED BY REASON OF ALTERNATIVE MINIMUM
TAX.
(a) Minimum Tax.--The amount of the minimum tax imposed by
section 55 of the Internal Revenue Code of 1986 shall be
determined as if sections 1, 3, and 5 of this Act had not been
enacted.
(b) Credits.--In applying section 26(a)(1) of such Code, the
amount referred to in subparagraph (B) thereof shall be reduced
(but not below zero) by the amount of the reduction in the
taxpayer's regular tax liability by reason of sections 1, 3,
and 5 of this Act.
Amend the title so as to read: ``A bill to amend the
Internal Revenue Code of 1986 to permanently extend all
marriage penalty relief including such relief in the earned
income credit, to ensure that the alternative minimum tax does
not deny those benefits, and to provide those benefits without
increasing the Federal budget deficit by reducing the benefits
of recent income tax rate reductions for individuals having
incomes of more than $1,000,000.''