To amend the Internal Revenue Code of 1986 to restore the phaseout of personal exemptions and the overall limitation on itemized deductions and to modify the income threshold used to calculate the refundable portion of the child tax credit.

SA 2665. Mr. HARKIN (for himself and Mr. Obama) submitted an
amendment intended to be proposed by him to the bill S. 2020, to
provide for reconciliation pursuant to section 202(b) of the concurrent
resolution on the budget for fiscal year 2006; as follows:

At the end of title IV, add the following:

[[Page S13235]]

SEC. __. RESTORATION OF THE PHASEOUT OF PERSONAL EXEMPTIONS
AND THE OVERALL LIMITATION ON ITEMIZED
DEDUCTION; REDUCTION IN INCOME THRESHOLD USED
TO CALCULATE REFUNDABLE PORTION OF CHILD TAX
CREDIT.

(a) Restoration of the Phaseout of Personal Exemptions and
the Overall Limitation on Itemized Deductions.--
(1) Restoration of phaseout of personal exemptions.--
(A) In general.--Paragraph (3) of section 151(d) (relating
to exemption amount) is amended by striking subparagraphs (E)
and (F).
(B) Effective date.--The amendment made by this paragraph
shall apply to taxable years beginning after December 31,
2005.
(2) Restoration of phaseout of overall limitation on
itemized deductions.--
(A) In general.--Section 68 is amended by striking
subsections (f) and (g).
(B) Effective date.--The amendment made by this paragraph
shall apply to taxable years beginning after December 31,
2005.
(b) Reduction in Income Threshold Used to Calculate
Refundable Portion of Child Tax Credit.--
(1) In general.--Section 24(d) (relating to portion of
credit refundable) is amended--
(A) by striking ``as exceeds'' and all that follows through
``, or'' in paragraph (1)(B)(i) and inserting ``as exceeds
$9,000 (or $10,000 in the case of taxable years beginning in
2006), or'',
(B) by striking ``2001, the $10,000 amount'' in paragraph
(3) and inserting ``2006, the $9,000 amount'', and
(C) by striking ``2000'' in paragraph (3)(B) and inserting
``2005''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2005.
(3) Application of sunset to this section.--Each amendment
made by this subsection 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.
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