H.R.2593 - Marriage Penalty Relief Act105th Congress (1997-1998)
|Sponsor:||Rep. Herger, Wally [R-CA-2] (Introduced 10/01/1997)|
|Committees:||House - Ways and Means|
|Latest Action:||10/07/1997 Sponsor introductory remarks on measure. (All Actions)|
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Text: H.R.2593 — 105th Congress (1997-1998)All Information (Except Text)
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Introduced in House (10/01/1997)
[Congressional Bills 105th Congress] [From the U.S. Government Printing Office] [H.R. 2593 Introduced in House (IH)] 105th CONGRESS 1st Session H. R. 2593 To amend the Internal Revenue Code of 1986 to restore the deduction for two-earner married couples. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES October 1, 1997 Mr. Herger (for himself, Mrs. Kennelly of Connecticut, Mr. Weller, Mr. Crane, Mr. Shaw, Mrs. Johnson of Connecticut, Mr. Bunning, Mr. Houghton, Mr. McCrery, Mr. Camp, Mr. Nussle, Mr. Sam Johnson of Texas, Ms. Dunn, Mr. Collins, Mr. Portman, Mr. English of Pennsylvania, Mr. Ensign, Mr. Christensen, Mr. Watkins, Mr. Hayworth, Mr. Neal of Massachusetts, and Mr. Coyne) 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 restore the deduction for two-earner married couples. 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''. SEC. 2. RESTORATION OF DEDUCTION FOR TWO-EARNER MARRIED COUPLES. (a) In General.--Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to additional itemized deductions for individuals) is amended by redesignating section 222 as section 223 and by inserting after section 221 the following new section: ``SEC. 222. DEDUCTION FOR TWO-EARNER MARRIED COUPLES. ``(a) Deduction Allowed.--In the case of a joint return for the taxable year, there shall be allowed as a deduction an amount equal to 10 percent of the lesser of-- ``(1) $30,000, or ``(2) the qualified earned income of the spouse with the lower qualified earned income for such taxable year. ``(b) Qualified Earned Income.-- ``(1) In general.--For purposes of this section, the term `qualified earned income' means an amount equal to the excess of-- ``(A) the earned income of the spouse for the taxable year, over ``(B) an amount equal to the sum of the deductions described in paragraphs (1), (2), (6), (7), and (12) of section 62(a) to the extent such deductions are properly allocable to or chargeable against earned income described in subparagraph (A). The amount of qualified earned income shall be determined without regard to any community property laws. ``(2) Earned income.--For purposes of paragraph (1), the term `earned income' means income which is earned income within the meaning of section 911(d)(2) or 401(c)(2)(C), except that-- ``(A) such term shall not include any amount-- ``(i) not includible in gross income, ``(ii) received as a pension or annuity, ``(iii) paid or distributed out of an individual retirement plan (within the meaning of section 7701(a)(37)), ``(iv) received as deferred compensation, or ``(v) received for services performed by an individual in the employ of his spouse (within the meaning of section 3121(b)(3)(A)), and ``(B) section 911(d)(2)(B) shall be applied without regard to the phrase `not in excess of 30 percent of his share of the net profits of such trade or business'. ``(d) Deduction Disallowed for Individual Claiming Benefits of Section 911 or 931.--No deduction shall be allowed under this section for any taxable year if either spouse claims the benefits of section 911 or 931 for such taxable year.'' (b) Deduction Allowed Whether or Not Taxpayer Itemizes Other Deductions.--Subsection (a) of section 62 of such Code (defining adjusted gross income) is amended by inserting after paragraph (17) the following new paragraph: ``(18) Deduction for two-earner married couples.--The deduction allowed by section 222.'' (c) Conforming Amendments.-- (1) Subparagraph (A) of section 86(b)(2) of such Code is amended by inserting ``222,'' after ``137,''. (2) Subsection (f) of section 86 of such Code is amended by striking ``and'' at the end of paragraph (3), by redesignating paragraph (4) as paragraph (5), and by inserting after paragraph (3) the following new paragraph: ``(4) section 222(b)(2) (defining earned income), and''. (3) The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by striking the item relating to section 222 and inserting the following: ``Sec. 222. Deduction for two-earner married couples. ``Sec. 223. Cross reference.'' (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. <all>