To promote fiscal responsibility.

1. 1

   Change 1: Strikes title I

   Strikes

   In S. 1054 · Placed on Calendar Senate

   Struck: TITLE I--ACCELERATION OF CERTAIN PREVIOUSLY ENACTED TAX REDUCTIONS; INCREASED EXPENSING FOR SMALL BUSINESSES

   Struck: SEC. 101. ACCELERATION OF 10-PERCENT INDIVIDUAL INCOME TAX RATE BRACKET EXPANSION.

   Struck: (a) In General.--Clause (i) of section 1(i)(1)(B) (relating to the initial bracket amount) is amended by striking "($12,000 in the case of taxable years beginning before January 1, 2008)".

   Struck: (b) Inflation Adjustment Beginning in 2004.--Subparagraph (C) of section 1(i)(1) (relating to inflation adjustment) is amended to read as follows:

   Show 91 more struck paragraphsShow less

   Struck: "(C) Inflation adjustment.--In prescribing the tables under subsection (f) which apply with respect to taxable years beginning in calendar years after 2003--

   Struck: "(i) the cost-of-living adjustment used in making adjustments to the initial bracket amount shall be determined under subsection (f)(3) by substituting '2002' for '1992' in subparagraph (B) thereof, and

   Struck: "(ii) such adjustment shall not apply to the amount referred to in subparagraph (B)(iii). If any amount after adjustment under the preceding sentence is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.".

   Struck: (c) Effective Dates.--

   Struck: (1) Subsection (a).--The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2002.

   Struck: (2) Subsection (b).--The amendment made by subsection (b) shall apply to taxable years beginning after December 31, 2003.

   Struck: (3) Tables for 2003.--The Secretary of the Treasury shall modify each table which has been prescribed for taxable years beginning in 2003 and which relates to the amendment made by subsection (a), section 102, or section 103 to reflect each such amendment.

   Struck: SEC. 102. ACCELERATION OF REDUCTION IN INDIVIDUAL INCOME TAX RATES.

   Struck: (a) In General.--The table in paragraph (2) of section 1(i) (relating to reductions in rates after June 30, 2001) is amended to read as follows:

   Struck: ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- "In the case of taxable years The corresponding percentages shall be substituted for the following percentages: beginning during calendar ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- year: 28% 31% 36% 39.6% ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2001.......................... 27.5% 30.5% 35.5% 39.1% 2002.......................... 27.0% 30.0% 35.0% 38.6% 2003 and thereafter........... 25.0% 28.0% 33.0% 35.0%". ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

   Struck: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2002.

   Struck: SEC. 103. MINIMUM TAX RELIEF TO INDIVIDUALS.

   Struck: (a) In General.--So much of paragraph (1) of section 55(d) (relating to exemption amount for taxpayers other than corporations) as precedes subparagraph (C) thereof is amended to read as follows:

   Struck: "(1) Exemption amount for taxpayers other than corporations.--In the case of a taxpayer other than a corporation, the term 'exemption amount' means as follows:

   Struck: "(A) Joint return and surviving spouse.--In the case of a joint return or a surviving spouse, the amount under the following table:

   Struck: "In the case of taxable years The exemption beginning: amount is: Before 2001........................................ $45,000 In 2001 and 2002................................... $49,000 In 2003, 2004, and 2005............................ $61,000 After 2005......................................... $45,000.

   Struck: "(B) Individual not married and not a surviving spouse.--In the case of an individual who is not a married individual and is not a surviving spouse, the amount under the following table:

   Struck: "In the case of taxable years The exemption beginning: amount is: Before 2001........................................ $33,750 In 2001 and 2002................................... $35,750 In 2003, 2004, and 2005............................ $41,750 After 2005......................................... $33,750.".

   Struck: (b) Conforming Amendments.--

   Struck: (1) Section 55(d)(1)(C) is amended--

   Struck: (A) by striking ", and" and inserting a period, and

   Struck: (B) by striking "50 percent" and inserting "Married individual filing a separate return.--50 percent".

   Struck: (2) Section 55(d)(1)(D) is amended by striking "$22,500" and inserting "Estate and trust.--$22,500".

   Struck: (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

   Struck: SEC. 104. ACCELERATION OF INCREASE IN STANDARD DEDUCTION FOR MARRIED TAXPAYERS FILING JOINT RETURNS.

   Struck: (a) In General.--Paragraph (2) of section 63(c) (relating to basic standard deduction) is amended to read as follows:

   Struck: "(2) Basic standard deduction.--For purposes of paragraph (1), the basic standard deduction is--

   Struck: "(A) 200 percent of the dollar amount in effect under subparagraph (C) for the taxable year in the case of--

   Struck: "(i) a joint return, or

   Struck: "(ii) a surviving spouse (as defined in section 2(a)),

   Struck: "(B) $4,400 in the case of a head of household (as defined in section 2(b)), or

   Struck: "(C) $3,000 in any other case.".

   Struck: (b) Conforming Amendments.--

   Struck: (1) Section 63(c)(4) is amended by striking "(2)(D)" each place it occurs and inserting "(2)(C)".

   Struck: (2) Section 63(c) is amended by striking paragraph (7).

   Struck: (3) Section 301(d) of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by striking "2004" and inserting "2002".

   Struck: (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

   Struck: SEC. 105. ACCELERATION OF 15-PERCENT INDIVIDUAL INCOME TAX RATE BRACKET EXPANSION FOR MARRIED TAXPAYERS FILING JOINT RETURNS.

   Struck: (a) In General.--Paragraph (8) of section 1(f) (relating to phaseout of marriage penalty in 15-percent bracket) is amended to read as follows:

   Struck: "(8) Elimination of marriage penalty in 15-percent bracket.--With respect to taxable years beginning after December 31, 2002, in prescribing the tables under paragraph (1)--

   Struck: "(A) the maximum taxable income in the 15 percent 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 200 percent of the maximum taxable income in the 15-percent rate bracket in the table contained in subsection (c) (after any other adjustment under this subsection), and

   Struck: "(B) the comparable taxable income amounts in the table contained in subsection (d) shall be \1/2\ of the amounts determined under subparagraph (A).".

   Struck: (b) Conforming Amendments.--

   Struck: (1) The heading for subsection (f) of section 1 is amended by striking "Phaseout" and inserting "Elimination".

   Struck: (2) Section 302(c) of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by striking "2004" and inserting "2002".

   Struck: (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

   Struck: SEC. 106. ACCELERATION OF INCREASE IN, AND REFUNDABILITY OF, CHILD TAX CREDIT.

   Struck: (a) Acceleration of Increase in Credit.--Subsection (a) of section 24 (relating to child tax credit) is amended to read as follows:

   Struck: "(a) Allowance of Credit.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year with respect to each qualifying child of the taxpayer an amount equal to $1,000.".

   Struck: (b) Expansion of Credit Refundability.--Section 24(d)(1)(B)(i) (relating to portion of credit refundable) is amended by striking "(10 percent in the case of taxable years beginning before January 1, 2005)".

   Struck: (c) Advance Payment of Portion of Increased Credit in 2003.--

   Struck: (1) In general.--Subchapter B of chapter 65 (relating to abatements, credits, and refunds) is amended by adding at the end the following new section:

   Struck: "SEC. 6429. ADVANCE PAYMENT OF PORTION OF INCREASED CHILD CREDIT FOR 2003.

   Struck: "(a) In General.--Each taxpayer who claimed a credit under section 24 on the return for the taxpayer's first taxable year beginning in 2002 shall be treated as having made a payment against the tax imposed by chapter 1 for such taxable year in an amount equal to the child tax credit refund amount (if any) for such taxable year.

   Struck: "(b) Child Tax Credit Refund Amount.--For purposes of this section, the child tax credit refund amount is the amount by which the aggregate credits allowed under part IV of subchapter A of chapter 1 for such first taxable year would have been increased if--

   Struck: "(1) the per child amount under section 24(a)(2) for such year were $1,000,

   Struck: "(2) only qualifying children (as defined in section 24(c)) of the taxpayer for such year who had not attained age 17 as of December 31, 2003, were taken into account, and

   Struck: "(3) section 24(d)(1)(B)(ii) did not apply.

   Struck: "(c) Timing of Payments.--In the case of any overpayment attributable to this section, the Secretary shall, subject to the provisions of this title, refund or credit such overpayment as rapidly as possible and, to the extent practicable, before October 1, 2003. No refund or credit shall be made or allowed under this section after December 31, 2003.

   Struck: "(d) Coordination with Child Tax Credit.--

   Struck: "(1) In general.--The amount of credit which would (but for this subsection and section 26) be allowed under section 24 for the taxpayer's first taxable year beginning in 2003 shall be reduced (but not below zero) by the payments made to the taxpayer under this section. Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).

   Struck: "(2) Joint returns.--In the case of a payment under this section with respect to a joint return, half of such payment shall be treated as having been made to each individual filing such return.

   Struck: "(e) No Interest.--No interest shall be allowed on any overpayment attributable to this section.".

   Struck: (2) Clerical amendment.--The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item:

   Struck: "Sec. 6429. Advance payment of portion of increased child credit for 2003.".

   Struck: (d) Effective Dates.--

   Struck: (1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2002.

   Struck: (2) Subsection (c).--The amendments made by subsection (c) shall take effect on the date of the enactment of this Act.

   Struck: SEC. 107. INCREASED EXPENSING FOR SMALL BUSINESS.

   Struck: (a) In General.--Paragraph (1) of section 179(b) (relating to dollar limitation) is amended to read as follows:

   Struck: "(1) Dollar limitation.--The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $75,000.".

   Struck: (b) Increase in Qualifying Investment at Which Phaseout Begins.-- Paragraph (2) of section 179(b) (relating to reduction in limitation) is amended by striking "$200,000" and inserting "$325,000".

   Struck: (c) Off-the-Shelf Computer Software.--Paragraph (1) of section 179(d) (defining section 179 property) is amended to read as follows:

   Struck: "(1) Section 179 property.--For purposes of this section, the term 'section 179 property' means property--

   Struck: "(A) which is--

   Struck: "(i) tangible property (to which section 168 applies), or

   Struck: "(ii) computer software (as defined in section 197(e)(3)(B)) which is described in section 197(e)(3)(A)(i) and to which section 167 applies,

   Struck: "(B) which is section 1245 property (as defined in section 1245(a)(3)), and

   Struck: "(C) which is acquired by purchase for use in the active conduct of a trade or business. Such term shall not include any property described in section 50(b) and shall not include air conditioning or heating units.".

   Struck: (d) Adjustment of Dollar Limit and Phaseout Threshold for Inflation.--Subsection (b) of section 179 (relating to limitations) is amended by adding at the end the following new paragraph:

   Struck: "(5) Inflation adjustments.--

   Struck: "(A) In general.--In the case of any taxable year beginning in a calendar year after 2003, the dollar amounts in paragraphs (1) and (2) shall each be increased by an amount equal to--

   Struck: "(i) such dollar amount, multiplied by "(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting 'calendar year 2002' for 'calendar year 1992' in subparagraph (B) thereof.

   Struck: "(B) Rounding.--

   Struck: "(i) Dollar limitation.--If the amount in paragraph (1) as increased under subparagraph (A) is not a multiple of $1,000, such amount shall be rounded to the nearest multiple of $1,000.

   Struck: "(ii) Phaseout amount.--If the amount in paragraph (2) as increased under subparagraph (A) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.".

   Struck: (e) Revocation of Election.--Paragraph (2) of section 179(c) (relating to election irrevocable) is amended to read as follows:

   Struck: "(2) Revocation of election.--The taxpayer may revoke an election under paragraph (1), and any specification contained in any such election, with respect to any property. Such revocation, once made, shall be irrevocable.".

   Struck: (f) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

   Struck: SEC. 108. APPLICATION OF EGTRRA SUNSET TO THIS TITLE.

   Struck: Each amendment made by this title (other than section 107) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 to the same extent and in the same manner as the provision of such Act to which such amendment relates.

   Original wording

   Strike titles I

2. 2

   Change 2: Strikes section II

   Strikes

   Removes section II.

   Original wording

   Strike section II.

3. 3

   Change 3: Strikes section IV

   Strikes

   Removes section IV.

   Original wording

   Strike section IV.

4. 4

   Change 4: Strikes section V

   Strikes

   Removes section V.

   Original wording

   Strike section V.

5. 5

   Change 5: Rewrites section 601

   Replaces

   In S. 1054 · Placed on Calendar Senate

   SEC. 601. SUNSET.

   [struck: (a) In General.--]Except as otherwise provided, the provisions of, and amendments made, by [struck: this Act][inserted: section 362] shall not apply to taxable years beginning after December 31, 2012, and the Internal Revenue Code of 1986 shall be applied and administered to such years as if such amendments had never been enacted.

   Struck: (b) Exceptions.--Subsection (a) shall not apply to the following provisions of, and amendments made by, this Act:

   Struck: (1) Title I (other than section 107).

   Struck: (2) Title III (other than section 362).

   Original wording

   Strike section 601 and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed