Text: H.R.4810 — 106th Congress (1999-2000)

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[Congressional Bills 106th Congress]
[From the U.S. Government Printing Office]
[H.R. 4810 Enrolled Bill (ENR)]

        H.R.4810

                       One Hundred Sixth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
             the twenty-fourth day of January, two thousand


                                 An Act


 
   To provide for reconciliation pursuant to section 103(a)(1) of the 
        concurrent resolution on the budget for fiscal year 2001.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Marriage Tax 
Relief Reconciliation Act of 2000''.
    (b) Section 15 Not To Apply.--No amendment made by this Act shall 
be treated as a change in a rate of tax for purposes of section 15 of 
the Internal Revenue Code of 1986.

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 
    ``200 percent of 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) 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).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.

SEC. 3. PHASEOUT OF MARRIAGE PENALTY IN 15-PERCENT BRACKET.

    (a) In General.--Subsection (f) of section 1 of the Internal 
Revenue Code of 1986 (relating to adjustments in tax tables so that 
inflation will not result in tax increases) is amended by adding at the 
end the following new paragraph:
        ``(8) Phaseout of marriage penalty in 15-percent bracket.--
            ``(A) In general.--With respect to taxable years beginning 
        after December 31, 1999, in prescribing the tables under 
        paragraph (1)--
                ``(i) the maximum taxable income in the lowest rate 
            bracket in the table contained in subsection (a) (and the 
            minimum taxable income in the next higher taxable income 
            bracket in such table) shall be the applicable percentage 
            of the maximum taxable income in the lowest rate bracket in 
            the table contained in subsection (c) (after any other 
            adjustment under this subsection), and
                ``(ii) the comparable taxable income amounts in the 
            table contained in subsection (d) shall be \1/2\ of the 
            amounts determined under clause (i).
            ``(B) Applicable percentage.--For purposes of subparagraph 
        (A), the applicable percentage shall be determined in 
        accordance with the following table:

        ``For taxable years beginning
                                                          The applicable
          in calendar year--
                                                         percentage is--
            2000..............................................
                                                                    170 
            2001..............................................
                                                                    173 
            2002..............................................
                                                                    178 
            2003..............................................
                                                                    183 
            2004 and thereafter...............................
                                                                   200. 

            ``(C) Rounding.--If any amount determined under 
        subparagraph (A)(i) is not a multiple of $50, such amount shall 
        be rounded to the next lowest multiple of $50.''.
    (b) Technical Amendments.--
        (1) Subparagraph (A) of section 1(f)(2) of such Code is amended 
    by inserting ``except as provided in paragraph (8),'' before ``by 
    increasing''.
        (2) The heading for subsection (f) of section 1 of such Code is 
    amended by inserting ``Phaseout of Marriage Penalty in 15-Percent 
    Bracket;'' before ``Adjustments''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.

SEC. 4. MARRIAGE PENALTY RELIEF FOR EARNED INCOME CREDIT.

    (a) In General.--Paragraph (2) of section 32(b) of the Internal 
Revenue Code of 1986 (relating to percentages and amounts) is amended--
        (1) by striking ``Amounts.--The earned'' and inserting 
    ``Amounts.--
            ``(A) In general.--Subject to subparagraph (B), the 
        earned''; and
        (2) by adding at the end the following new subparagraph:
            ``(B) Joint returns.--In the case of a joint return, the 
        phaseout amount determined under subparagraph (A) shall be 
        increased by $2,000.''.
    (b) Inflation Adjustment.--Paragraph (1)(B) of section 32(j) of 
such Code (relating to inflation adjustments) is amended to read as 
follows:
            ``(B) the cost-of-living adjustment determined under 
        section 1(f)(3) for the calendar year in which the taxable year 
        begins, determined--
                ``(i) in the case of amounts in subsections (b)(2)(A) 
            and (i)(1), by substituting `calendar year 1995' for 
            `calendar year 1992' in subparagraph (B) of section 
            1(f)(3), and
                ``(ii) in the case of the $2,000 amount in subsection 
            (b)(2)(B), by substituting `calendar year 1999' for 
            `calendar year 1992' in subparagraph (B) of section 
            1(f)(3).''.
    (c) Rounding.--Section 32(j)(2)(A) of such Code (relating to 
rounding) is amended by striking ``subsection (b)(2)'' and inserting 
``subparagraph (A) of subsection (b)(2) (after being increased under 
subparagraph (B) thereof)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.

SEC. 5. ALLOWANCE OF NONREFUNDABLE PERSONAL CREDITS AGAINST REGULAR AND 
              MINIMUM TAX LIABILITY.

    (a) In General.--Subsection (a) of section 26 of the Internal 
Revenue Code of 1986 (relating to limitation based on tax liability; 
definition of tax liability) is amended to read as follows:
    ``(a) Limitation Based on Amount of Tax.--The aggregate amount of 
credits allowed by this subpart for the taxable year shall not exceed 
the sum of--
        ``(1) the taxpayer's regular tax liability for the taxable year 
    reduced by the foreign tax credit allowable under section 27(a), 
    and
        ``(2) the tax imposed for the taxable year by section 55(a).''.
    (b) Conforming Amendments.--
        (1) Subsection (d) of section 24 of such Code is amended by 
    striking paragraph (2) and by redesignating paragraph (3) as 
    paragraph (2).
        (2) Section 32 of such Code is amended by striking subsection 
    (h).
        (3) Section 904 of such Code is amended by striking subsection 
    (h) and by redesignating subsections (i), (j), and (k) as 
    subsections (h), (i), and (j), respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.

SEC. 6. ESTIMATED TAX.

    The amendments made by this Act shall not be taken into account 
under section 6654 of the Internal Revenue Code of 1986 (relating to 
failure to pay estimated tax) in determining the amount of any 
installment required to be paid before October 1, 2000.

SEC. 7. COMPLIANCE WITH BUDGET ACT.

    (a) In General.--Except as provided in subsection (b), all 
amendments made by this Act which are in effect on September 30, 2005, 
shall cease to apply as of the close of September 30, 2005.
    (b) Sunset for Certain Provisions Absent Subsequent Legislation.--
The amendments made by sections 2, 3, 4, and 5 of this Act shall not 
apply to any taxable year beginning after December 31, 2004.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.