A bill to amend the Internal Revenue Code of 1954 to liberalize the retirement income credit.

Provides for a retirement income tax credit under the Internal Revenue Code for the elderly of 15 percent of $2,500 in the case of a single individual, $2,500 in the case of a joint return where only one spouse is eligible for such credit, $3,750 in the case of a joint return where both spouses are eligible for the credit or $1,875 in the case of a married individual filing a separate return, reduced by any amount received by such individual as a specified pension or annuity.

Reduces by one-half the amount of earned income in excess of $2,000 by an individual who has not attained age 72. Specifies special rules for determining the reduction. Provides that no credit shall be allowed to any nonresident alien.