A bill to amend the Internal Revenue Code of 1954 to provide for annual adjustments in the amount of personal exemptions to reflect increases in the cost of living.

Provides, under the Internal Revenue Code, that the allowance of the personal exemption deduction shall be the exemption amount (formerly $750). Defines "exemption amount" as an amount equal to $750 increased by the percentage by which the Consumer Price Index prepared by the Department of Labor for December of the calendar year in which the taxable year begins exceeds such index for the month of December 1973. States that the amount so computed shall be increased to the nearest $5.

Makes technical and conforming amendments to additional provisions of the Internal Revenue Code.