[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 11 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 11
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 applicable to unmarried individuals, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 22, 2001
Mrs. Hutchison (for herself, Mr. Lott, Mr. Brownback, Mr. Nickles, Mr.
Kyl, Mr. Murkowski, Mr. Allen, Mr. Gramm, Mr. Crapo, Mr. Warner, Mr.
Hagel, Mr. Bunning, Mr. Frist, Mr. McConnell, Mr. Burns, Mr. Ensign,
Mr. Helms, and Mr. Craig) introduced the following bill; which was read
twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
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 applicable to unmarried individuals, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short Title.--This Act may be cited as the ``Marriage Tax
Penalty Elimination Act of 2001''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Section 15 Not To Apply.--No amendment made by section 2 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 INDIVIDUAL INCOME TAX RATES.
(a) General Rule.--Section 1 (relating to tax imposed) is amended
by striking subsections (a) through (e) and inserting the following:
``(a) Married Individuals Filing Joint Returns and Surviving
Spouses.--There is hereby imposed on the taxable income of--
``(1) every married individual (as defined in section 7703)
who makes a single return jointly with his spouse under section
6013, and
``(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table:
``If taxable income is: The tax is:
Not over $54,100...............
15% of taxable income.
Over $54,100 but not over
$131,100.
$8,151, plus 28% of the excess
over $54,100.
Over $131,100 but not over
$273,500.
$29,647, plus 31% of the excess
over $131,100.
Over $273,500 but not over
$594,600.
$73,791, plus 36% of the excess
over $273,500.
Over $594,600..................
$189,315, plus 39.6% of the
excess over $594,600.
``(b) Heads of Households.--There is hereby imposed on the taxable
income of every head of a household (as defined in section 2(b)) a tax
determined in accordance with the following table:
``If taxable income is: The tax is:
Not over $36,250...............
15% of taxable income.
Over $36,250 but not over
$93,600.
$5,437.50, plus 28% of the
excess over $36,250.
Over $93,600 but not over
$151,600.
$21,495.50, plus 31% of the
excess over $93,600.
Over $151,600 but not over
$297,300.
$39,475.50, plus 36% of the
excess over $151,600.
Over $297,300..................
$91,927.50, plus 39.6% of the
excess over $297,300.
``(c) Other Individuals.--There is hereby imposed on the taxable
income of every individual (other than an individual to whom subsection
(a) or (b) applies) a tax determined in accordance with the following
table:
``If taxable income is: The tax is:
Not over $27,050...............
15% of taxable income.
Over $27,050 but not over
$65,550.
$4,075.50, plus 28% of the
excess over $27,050.
Over $65,550 but not over
$136,750.
$14,823.50, plus 31% of the
excess over $65,550.
Over $136,750 but not over
$297,300.
$36,895.50, plus 36% of the
excess over $136,750.
Over $297,300..................
$94,657.50, plus 39.6% of the
excess over $297,300.
``(d) Estates and Trusts.--There is hereby imposed on the taxable
income of--
``(1) every estate, and
``(2) every trust,
taxable under this subsection a tax determined in accordance with the
following table:
``If taxable income is: The tax is:
Not over $1,800................
15% of taxable income.
Over $1,800 but not over $4,250
$270, plus 28% of the excess
over $1,800.
Over $4,250 but not over $6,500
$956, plus 31% of the excess
over $4,250.
Over $6,500 but not over $8,900
$1,653.50, plus 36% of the
excess over $6,500.
Over $8,900....................
$2,517.50, plus 39.6% of the
excess over $8,900.''.
(b) Inflation Adjustment To Apply in Determining Rates for 2002.--
Subsection (f) of section 1 is amended--
(1) by striking ``1993'' in paragraph (1) and inserting
``2001'',
(2) by striking ``1992'' in paragraph (3)(B) and inserting
``2000'', and
(3) by striking paragraph (7).
(c) Conforming Amendments.--
(1) The following provisions are each amended by striking
``1992'' and inserting ``2000'' each place it appears:
(A) Section 25A(h).
(B) Section 32(j)(1)(B).
(C) Section 41(e)(5)(C).
(D) Section 42(h)(3)(H)(i)(II).
(E) Section 59(j)(2)(B).
(F) Section 63(c)(4)(B).
(G) Section 68(b)(2)(B).
(H) Section 132(f)(6)(A)(ii).
(I) Section 135(b)(2)(B)(ii).
(J) Section 146(d)(2)(B).
(K) Section 151(d)(4).
(L) Section 220(g)(2).
(M) Section 221(g)(1)(B).
(N) Section 512(d)(2)(B).
(O) Section 513(h)(2)(C)(ii).
(P) Section 685(c)(3)(B).
(Q) Section 877(a)(2).
(R) Section 911(b)(2)(D)(ii)(II).
(S) Section 2032A(a)(3)(B).
(T) Section 2503(b)(2)(B).
(U) Section 2631(c)(2).
(V) Section 4001(e)(1)(B).
(W) Section 4261(e)(4)(A)(ii).
(X) Section 6039F(d).
(Y) Section 6323(i)(4)(B).
(Z) Section 6334(g)(1)(B).
(AA) Section 6601(j)(3)(B).
(BB) Section 7430(c)(1).
(2) Subclause (II) of section 42(h)(6)(G)(i) is amended by
striking ``1987'' and inserting ``2000''.
(3) Sections 468B(b)(1), 511(b)(1), 641(a), 641(d)(2)(A),
and 685(d) are each amended by striking ``section 1(e)'' each
place it appears and inserting ``section 1(d)''.
(4) Sections 1(f)(2) and 904(b)(3)(E)(ii) are each amended
by striking ``(d), or (e)'' and inserting ``or (d)''.
(5) Paragraph (1) of section 1(f) is amended by striking
``(d), and (e)'' and inserting ``and (d)''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2000.
SEC. 3. ELIMINATION OF MARRIAGE PENALTY IN STANDARD DEDUCTION.
(a) In General.--Paragraph (2) of section 63(c) (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) 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) 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. 4. MARRIAGE PENALTY RELIEF FOR EARNED INCOME CREDIT.
(a) In General.--Paragraph (2) of section 32(b) (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 $2,000.''.
(b) Inflation Adjustment.--Paragraph (1)(B) of section 32(j)
(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) of section 1(f)(3), and
``(ii) in the case of the $2,000 amount in
subsection (b)(2)(B), by substituting `calendar
year 1999' for `calendar year 1992' in
subparagraph (B) of section 1(f)(3).''.
(c) Rounding.--Section 32(j)(2)(A) (relating to rounding) is
amended by striking ``subsection (b)(2)'' and inserting ``subparagraph
(A) of subsection (b)(2) (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.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S163-164)
Read twice and referred to the Committee on Finance.
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