H.R. 536

Strengthen the Earned Income Tax Credit Act of 2009

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I

111th CONGRESS

1st Session

H. R. 536

IN THE HOUSE OF REPRESENTATIVES

January 14, 2009

Mr. Pascrell (for himself and Mr. Boren) 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 strengthen the earned income tax credit.

1.

Short title

This Act may be cited as the Strengthen the Earned Income Tax Credit Act of 2009.

2.

Strengthen the earned income tax credit

(a)

Reduction in Marriage Penalty

(1)

In general

Section 32(b)(2)(B) of the Internal Revenue Code of 1986 (relating to joint returns) is amended—

(A)

in clause (iii) by striking after 2007. and inserting in 2008,, and

(B)

by inserting after clause (iii) the following new clauses:

(iv)

$3,500 in the case of taxable years beginning in 2009,

(v)

$4,000 in the case of taxable years beginning in 2010,

(vi)

$4,500 in the case of taxable years beginning in 2011, and

(vii)

$5,000 in the case of taxable years beginning after 2012.

.

(2)

Inflation adjustment

Section 32(j)(1)(B)(ii) of such Code is amended—

(A)

by striking $3,000 amount in subsection (b)(2)(B)(iii) and inserting $5,000 amount in subsection (b)(2)(B)(vii), and

(B)

by striking 2007 and inserting 2010.

(3)

Provisions not subject to sunset

Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset provisions of such Act) shall not apply to section 303(a) of such Act.

(b)

Increase in Credit Percentage for Families With 3 or More Children

The table contained in section 32(b)(1)(A) of such Code (relating to percentages) is amended—

(1)

by striking 2 or more qualifying children in the second row and inserting 2 qualifying children, and

(2)

by inserting after the second row the following new item:

3 or more qualifying children4521.06

.

(c)

Credit Increase and Reduction in Phaseout for Individuals With No Children

The table contained in section 32(b)(1)(A) of such Code is amended—

(1)

by striking 7.65 in the second column of the third row and inserting 15.3, and

(2)

by striking 7.65 in the third column of the third row and inserting 15.3.

(d)

Effective Date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.