[House Report 106-726]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-726
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PROVIDING FOR THE CONSIDERATION OF H.R. 4810, THE MARRIAGE TAX PENALTY
RELIEF RECONCILIATION ACT OF 2000
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July 11, 2000.--Referred to the House Calendar and ordered to be
printed
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Ms. Pryce of Ohio, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 545]
The Committee on Rules, having had under consideration
House Resolution 545, by a nonrecord vote, report the same to
the House with the recommendation that the resolution be
adopted.
summary of provisions of the resolution
The resolution provides for the consideration, in the
House, of H.R. 4810, the Marriage Tax Penalty Relief
Reconciliation Act of 2000, under a modified closed rule. The
rule provides one hour of debate equally divided and controlled
by the chairman and ranking minority member of the Committee on
Ways and Means. The rule waives all points of order against
consideration of the bill.
The rule provides for consideration of the amendment in the
nature of a substitute, printed in this report, if offered by
Representative Rangel or his designee, which shall be
considered as read and shall be separately debatable for one
hour equally divided and controlled by the proponent and an
opponent. The rule waives all points of order against
consideration of the amendment in the nature of a substitute.
Finally, the rule provides one motion to recommit with or
without instructions.
summary of the amendment made in order under the rule
Rangel--Amendment in the nature of a substitute. The
substitute increases the standard deduction for joint returns
so that it is equal to twice the standard deduction for single
taxpayers; adjusts the alternative minimum tax so that it would
not disallow the full benefit of the increase in the standard
deduction; increases the income level at which the earned
income credit (EIC) begins to phase out by $2,000 in 2001 and
by $2,500 on 2002 and thereafter; and repeals the current law
reduction in the EIC and refundable child credit by the amount
of the minimum tax. (60 Minutes)
text of amendment made in order under rule
1. An Amendment To Be Offered by Representative Rangel of New York, or
a Designee, Debatable for 60 Minutes
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Marriage Tax Penalty Relief
Reconciliation Act of 2000''.
SEC. 2. ELIMINATION OF MARRIAGE PENALTY IN STANDARD DEDUCTION.
(a) In General.--Paragraph (2) of section 63(c) of the
Internal Revenue Code of 1986 (relating to standard deduction)
is amended--
(1) by striking ``$5,000'' in subparagraph (A) and
inserting ``twice the dollar amount in effect under
subparagraph (C) for the taxable year'',
(2) by adding ``or'' at the end of subparagraph (B),
(3) by striking ``in the case of'' and all that
follows in subparagraph (C) and inserting ``in any
other case.'', and
(4) by striking subparagraph (D).
(b) Increase Allowed as Deduction in Determining Minimum
Tax.--Subparagraph (E) of section 56(b)(1) of such Code is
amended by adding at the end the following new sentence: ``The
preceding sentence shall not apply to so much of the standard
deduction under subparagraph (A) of section 63(c)(2) as exceeds
the amount which be such deduction but for the amendment made
by section 2(a) of the Marriage Tax Penalty Relief
Reconciliation Act of 2000.
(c) Technical Amendments.--
(1) Subparagraph (B) of section 1(f)(6) of such Code
is amended by striking ``(other than with'' and all
that follows through ``shall be applied'' and inserting
``(other than with respect to sections 63(c)(4) and
151(d)(4)(A)) shall be applied''.
(2) Paragraph (4) of section 63(c) of such Code is
amended by adding at the end the following flush
sentence:
``The preceding sentence shall not apply to the amount
referred to in paragraph (2)(A).''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2000.
SEC. 3. MARRIAGE PENALTY RELIEF FOR EARNED INCOME CREDIT.
(a) In General.--Subsection (a) of section 32 of the Internal
Revenue Code of 1986 (relating to credit for earned income) is
amended by adding at the end the following new paragraph:
``(3) Reduction of marriage penalty.--
``(A) In general.--In the case of a joint
return, the phaseout amount under this section
shall be such amount (determined without regard
to this paragraph) increased by $2,500 ($2,000
in the case of taxable years beginning during
2001).
``(B) Inflation adjustment.--In the case of
any taxable year beginning in a calendar year
after 2002, the $2,500 amount contained in
subparagraph (A) shall be increased by an
amount equal to the product of--
``(i) such dollar amount, and
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for
the calendar year in which the taxable
year begins, determined by substituting
`calendar year 2001' for `calendar year
1992' in subparagraph (B) thereof.
If any increase determined under the preceding
sentence is not a multiple of $50, such
increase shall be rounded to the next lowest
multiple of $50.''
(b) Repeal of Reduction of Refundable Tax Credits.--
(1) Subsection (d) of section 24 of such Code is
amended by striking paragraph (2) and redesignating
paragraph (3) as paragraph (2).
(2) Section 32 of such Code is amended by striking
subsection (h).
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2000.