< Back to H.R. 4131 (103rd Congress, 1993–1994)

Text of the Family Unity Promotion Act of 1994

This bill was introduced on March 24, 1994, in a previous session of Congress, but was not enacted. The text of the bill below is as of Mar 24, 1994 (Introduced).

Source: GPO

HR 4131 IH

103d CONGRESS

2d Session

H. R. 4131

To amend the Internal Revenue Code of 1986 to make the income tax more equitable for families.

IN THE HOUSE OF REPRESENTATIVES

March 24, 1994

Mr. DARDEN introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to make the income tax more equitable for families.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Family Unity Promotion Act of 1994’.

SEC. 2. COMBINED RETURN TO WHICH UNMARRIED RATES APPLY.

    (a) IN GENERAL- Subpart B of part II of subchapter A of chapter 61 of the Internal Revenue Code of 1986 (relating to income tax returns) is amended by inserting after section 6013 the following new section:

‘SEC. 6013A. COMBINED RETURN WITH SEPARATE RATES.

    ‘(a) GENERAL RULE- A husband and wife may make a combined return of income taxes under subtitle A under which--

      ‘(1) a separate taxable income is determined for each spouse by applying the rules provided in this section, and

      ‘(2) the tax imposed by section 1 is the aggregate amount resulting from applying the separate rate set forth in section 1(c) to each such taxable income.

    ‘(b) TREATMENT OF INCOME- For purposes of this section--

      ‘(1) earned income (within the meaning of section 911(d)), and any income received as a pension or annuity which arises from an employer-employee relationship, shall be treated as the income of the spouse who rendered the services, and

      ‘(2) income from property shall be divided between the spouses in accordance with their respective ownership rights in such property.

    ‘(c) TREATMENT OF DEDUCTIONS- For purposes of this section--

      ‘(1) the deductions allowed by section 62(a) (other than paragraphs (7) and (10) thereof) shall be allowed to the spouse treated as having the income to which such deductions relate,

      ‘(2) the deduction for retirement savings described in paragraph (7) of section 62(a) shall be allowed to the spouse for whose benefit the savings are maintained,

      ‘(3) the deduction for alimony described in paragraph (10) of section 62(a) shall be allowed to the spouse who has the liability to pay the alimony,

      ‘(4) the deductions allowable by section 151 (relating to personal exemptions) shall be determined--

        ‘(A) by requiring each spouse to claim 1 personal exemption, and

        ‘(B) by allowing the personal exemptions under section 151(c) to be allocated between the spouses as they determine,

      ‘(5) by requiring each spouse to claim their own additional standard deduction (if any) under section 63, and

      ‘(6) the aggregate amount of all other deductions shall be allocated between the spouses in such amounts as they determine.

    ‘(d) TREATMENT OF CREDITS- Credits shall be determined (and applied against the joint liability of the couple for tax) as if the spouses had filed a joint return.

    ‘(e) TREATMENT AS JOINT RETURN- Except as otherwise provided in this section or in the regulations prescribed hereunder, for purposes of this title (other than sections 1 and 63(c)) a combined return under this section shall be treated as a joint return.

    ‘(f) REGULATIONS- The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out this section.’

    (b) UNMARRIED RATE MADE APPLICABLE- So much of subsection (c) of section 1 of such Code as precedes the table is amended to read as follows:

    ‘(c) SEPARATE OR UNMARRIED RETURN RATE- There is hereby imposed on the taxable income of every individual (other than a married individual (as defined in section 7703) filing a joint return or a separate return, a surviving spouse as defined in section 2(a), or a head of household as defined in section 2(b)) a tax determined in accordance with the following table:’.

    (c) BASIC STANDARD DEDUCTION FOR UNMARRIED INDIVIDUALS MADE APPLICABLE- Subparagraph (C) of section 63(c)(2) of such Code is amended to read as follows:

        ‘(C) $3,000 in the case of an individual who is not--

          ‘(i) a married individual filing a joint return or a separate return,

          ‘(ii) a surviving spouse, or

          ‘(iii) a head of household, or’.

    (d) CLERICAL AMENDMENT- The table of sections for subpart B of part II of subchapter A of chapter 61 of such Code is amended by inserting after the item relating to section 6013 the following:

‘Sec. 6013A. Combined return with separate rates.’

    (e) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1994.

SEC. 3. HOMEMAKERS ELIGIBLE FOR FULL IRA DEDUCTION.

    (a) SPOUSAL IRA COMPUTED ON BASIS OF COMPENSATION OF BOTH SPOUSES- Subsection (c) of section 219 of the Internal Revenue Code of 1986 (relating to special rules for certain married individuals) is amended to read as follows:

    ‘(c) Special Rules for Certain Married Individuals-

      ‘(1) IN GENERAL- In the case of an individual to whom this paragraph applies for the taxable year, the limitation of paragraph (1) of subsection (b) shall be equal to the lesser of--

        ‘(A) $2,000, or

        ‘(B) the sum of--

          ‘(i) the compensation includible in such individual’s gross income for the taxable year, plus

          ‘(ii) the compensation includible in the gross income of such individual’s spouse for the taxable year reduced by the amount allowable as a deduction under subsection (a) to such spouse for such taxable year.

      ‘(2) INDIVIDUALS TO WHOM PARAGRAPH (1) APPLIES- Paragraph (1) shall apply to any individual if--

        ‘(A) such individual files a joint return for the taxable year, and

        ‘(B) the amount of compensation (if any) includible in such individual’s gross income for the taxable year is less than the compensation includible in the gross income of such individual’s spouse for the taxable year.’

    (b) IRA ALLOWED FOR SPOUSES WHO ARE NOT ACTIVE PLAN PARTICIPANTS- Section 219(g)(1) of such Code is amended by striking ‘or the individual’s spouse’.

    (c) Conforming Amendments-

      (1) Paragraph (2) of section 219(f) of such Code (relating to other definitions and special rules) is amended by striking ‘subsections (b) and (c)’ and inserting ‘subsection (b)’.

      (2) Section 408(d)(5) of such Code is amended by striking ‘$2,250’ and inserting ‘$2,000’.

    (d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1994.

SEC. 4. INCREASE IN PERSONAL EXEMPTION FOR CERTAIN DEPENDENT CHILDREN.

    (a) GENERAL RULE- Paragraph (1) of section 151(d) of the Internal Revenue Code of 1986 (defining exemption amount) is amended to read as follows:

      ‘(1) IN GENERAL- Except as otherwise provided in this subsection, the term ‘exemption amount’ means $2,000 (or, in the case of an exemption under subsection (c) for a child who has not attained age 18 before the close of the calendar year in which the taxable year begins, $3,500).’

    (b) CONFORMING AMENDMENTS-

      (1) Subparagraph (A) of section 151(d)(3) of such Code is amended by striking ‘the exemption amount’ and inserting ‘each dollar amount in effect under paragraph (1) (after any adjustment under paragraph (4))’.

      (2) Subparagraph (A) of section 151(d)(4) of such Code is amended--

        (A) by striking ‘the dollar amount’ and inserting ‘each dollar amount’, and

        (B) by adding at the end thereof the following new sentence: ‘In the case of the $3,500 amount contained in paragraph (1), the preceding sentence shall be applied by substituting ‘1995’ for ‘1989’ the first place it appears, and by substituting ‘1994’ for ‘1988’.’

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1994.