[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 120 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 120
To eliminate the marriage tax penalty permanently in 2003.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 9, 2003
Mrs. Hutchison (for herself, Mr. Bayh, Mr. Brownback, Mr. Hagel, Mr.
Fitzgerald, Mr. Cornyn, Mr. Cochran, and Mr. Burns) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To eliminate the marriage tax penalty permanently in 2003.
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 Relief Act of
2003''.
SEC. 2. ACCELERATION OF MARRIAGE PENALTY RELIEF PROVISIONS.
(a) Elimination of Marriage Penalty in Standard Deduction.--
(1) In general.--Paragraph (2) of section 63(c) of the
Internal Revenue Code of 1986 (relating to standard deduction)
is amended--
(A) by striking ``$5,000'' in subparagraph (A) and
inserting ``200 percent of the dollar amount in effect
under subparagraph (C) for the taxable year'';
(B) by adding ``or'' at the end of subparagraph
(B);
(C) by striking ``in the case of'' and all that
follows in subparagraph (C) and inserting ``in any
other case.''; and
(D) by striking subparagraph (D).
(2) Technical amendments.--
(A) 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''.
(B) 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).''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31, 2002.
(b) Elimination of Marriage Penalty in 15-Percent Bracket.--
(1) In general.--Section 1(f) 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) Elimination of marriage penalty in 15-percent
bracket.--
``(A) In general.--With respect to taxable years
beginning after December 31, 2002, in prescribing the
tables under paragraph (1)--
``(i) 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
``(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) 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.''.
(2) Technical amendments.--
(A) Subparagraph (A) of section 1(f)(2) of such
Code is amended by inserting ``except as provided in
paragraph (8),'' before ``by increasing''.
(B) The heading for subsection (f) of section 1 is
amended by inserting ``Elimination of Marriage Penalty
in 15-Percent Bracket;'' before ``Adjustments''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31, 2002.
(c) Marriage Penalty Relief for Earned Income Credit.--
(1) Increased phaseout amount.--
(A) In general.--Section 32(b)(2)(B) of the
Internal Revenue Code of 1986 (relating to amounts) is
amended by striking ```increased by--'' and all that
follows and inserting ``increased by $3,000.''.
(B) Inflation adjustment.--Paragraph (1)(B)(ii) of
section 32(j) of such Code (relating to inflation
adjustments) is amended to read as follows:
``(ii) in the case of the $3,000 amount in
subsection (b)(2)(B), by substituting `calendar
year 2003' for `calendar year 1992' in
subparagraph (B) of such section 1.''.
(C) Effective date.--The amendments made by this
paragraph shall apply to taxable years beginning after
December 31, 2002.
(2) Expansion of mathematical error authority.--
(A) In general.--Paragraph (2) of section 6213(g)
of such Code is amended by striking ``and'' at the end
of subparagraph (K), by striking the period at the end
of subparagraph (L) and inserting ``, and'', and by
inserting after subparagraph (L) the following new
subparagraph:
``(M) the entry on the return claiming the credit
under section 32 with respect to a child if, according
to the Federal Case Registry of Child Support Orders
established under section 453(h) of the Social Security
Act, the taxpayer is a noncustodial parent of such
child.''.
(B) Effective date.--The amendment made by this
paragraph shall take effect on January 1, 2003.
(d) Conforming Amendments.--
(1) Repeal of amendments.--Sections 301, 302, and 303(g) of
the Economic Growth and Tax Relief Reconciliation Act of 2001
are repealed.
(2) Repeal of sunset.--Title IX of the Economic Growth and
Tax Relief Reconciliation Act of 2001 (relating to sunset of
provisions of such Act) shall not apply to section 303 (other
than subsection (g) of such section) of such Act (relating to
marriage penalty relief).
<all>