S. 1989 (105th): Marriage Penalty Reduction Act

105th Congress, 1997–1998. Text as of Apr 27, 1998 (Introduced).

Status & Summary | PDF | Source: GPO

S 1989 IS

105th CONGRESS

2d Session

S. 1989

To amend the Internal Revenue Code of 1986 to increase the standard deduction amount to reduce the marriage penalty, simplify the filing of individual tax returns, and provide tax relief for lower and middle income individuals, and for other purposes.

IN THE SENATE OF THE UNITED STATES

April 27, 1998

Mr. FORD introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To amend the Internal Revenue Code of 1986 to increase the standard deduction amount to reduce the marriage penalty, simplify the filing of individual tax returns, and provide tax relief for lower and middle income individuals, and for other purposes.

    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 ‘Marriage Penalty Reduction Act’.

SEC. 2. INCREASE IN STANDARD DEDUCTION AMOUNT.

    (a) STANDARD DEDUCTION AMOUNT- Section 63(c)(2) of the Internal Revenue Code of 1986 (relating to the basic standard deduction) is amended--

      (1) by striking ‘$5,000’ and inserting ‘$12,000’ in subparagraph (A),

      (2) by striking ‘$4,400’ and inserting ‘$9,000’ in subparagraph (B),

      (3) by striking ‘$3,000’ and inserting ‘$6,000’ in subparagraph (C), and

      (4) by striking ‘$2,500’ and inserting ‘$6,000’ in subparagraph (D).

    (b) INDEXING OF AMOUNT- Subparagraph (B) of section 63(c)(4) of the Internal Revenue Code of 1986 (relating to adjustments for inflation) is amended--

      (1) in clause (i)--

        (A) by striking ‘(2) or’, and

        (B) by striking ‘and’ at the end,

      (2) in clause (ii), by striking the period at the end and inserting ‘, and’, and

      (3) by adding at the end the following new clause:

          ‘(iii) ‘calendar year 1998’ in the case of the dollar amounts contained in paragraph (2).’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1998.