Taxpayer Protection Act

Taxpayer Protection Act - Title I: Protection of Tax Returns From Improper Disclosure - States that all returns made with respect to the taxes imposed by the Internal Revenue Code are confidential records. Provides that: (1) no such return shall be open to inspection; and (2) no information contained in any such return shall be disclosed.

Authorizes inspections by the following persons: (1) the taxpayer or his authorized representative; (2) officers and employees of the Internal Revenue Service, Department of the Treasury, Department of Justice, and State and local government employees solely for purposes of enforcement and administration of the tax laws; and (3) the President of the United States in the necessary performance of his official duties.

Increases the criminal penalties for unauthorized disclosure of information under the provisions of the Internal Revenue Code.

States that any person who knowingly receives any information or material which is disclosed or furnished in violation of the provisions of this Act shall be guilty of a felony and subject to a fine of up to $10,000, imprisoned for up to five years, or both.

Title II: Cost-of-living Adjustment for Taxpayers - Provides, under the Internal Revenue Code, for automatic cost-of-living adjustments, based on the Consumer Price Index, in: (1) the income tax rates; (2) the amount of the standard deductions; (3) the amount of personal exemptions; (4) the amount of depreciation deductions; (5) the adjusted basis for property; and (6) the corporate surtax exemption. Makes cost-of-living adjustments in the interest rates of specified United States savings bonds and certificates and on other obligations of the United States.

Title III: Tax Inequities Based on Marital Status - Amends the Internal Revenue Code to provide identical income tax rates for single persons and married couples filing joint returns. Limits the earned income that must be reported by a married individual filing a separate return to the amount actually earned by that individual.