A bill to amend the Internal Revenue Code of 1954 to exclude from gross income a portion of each individual's personal service income to reflect the loss in the purchasing power of that income attributable to inflation.

Amends the Internal Revenue Code to exclude from gross income a percentage of an individual's personal service income which is equal to the percent difference, as determined by the Bureau of Labor Statistics, between the price index for any 12 month period preceding a calendar year beginning in 1979 and the price index for calendar year 1977.