A bill to amend the Internal Revenue Code of 1954 to increase the amount of the personal exemptions from $750 to $1,000, to provide for automatic cost-of-living adjustments in the individual tax rates, and to provide a credit for a certain portion of the expenses of higher education.

Amends the Internal Revenue Code to increase the amount of the personal exemption from $750 to $1,000.

Provides for automatic annual cost-of-living increases in individual income tax rates.

Allows a tax credit for educational expenses paid to an institution of higher education for the taxpayer, his spouse, and any of his dependents. Sets limitations on the amount of such credit. Makes the amendments made by this Act effective for taxable years beginning after December 31, 1976.