Rule Relating to the Consideration of the Senate Amendments to H.R. 1308 - Tax Relief, Simplification, and Equity Act of 2003

COMMITTEE ACTION: REPORTED BY RECORD VOTE of 9 to 4 on Wednesday, June 11, 2003.
FLOOR ACTION:ADOPTED BY RECORD VOTE OF 224-201, AFTER AGREEING ON THE PREVIOUS BY A RECORD VOTE OF 225-201 on Thursday, June 12, 2003.
MANAGERS: REYNOLDS/FROST
108th Congress
1st Session

Relating to the Consideration of the Senate Amendments to H.R. 1308 - Tax Relief, Simplification, and Equity Act of 2003

1. Provides that upon adoption of the resolution the bill, H.R. 1308, with the Senate amendments thereto, be hereby taken from the Speaker's table.

2. Provides that upon adoption of the resolution the Senate amendment to the title is hereby agreed to.

3. Provides that upon adoption of the resolution the Senate amendment to the text is hereby agreed to with the amendment printed in the report of the Committee on Rules accompanying the resolution.

4. Provides that it shall be in order for the chairman of the Committee on Ways and Means to move that the House insist on its amendment to the Senate amendment to H.R. 1308, or that the House disagree to any further Senate amendment, and request or agree to a conference with the Senate thereon.

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RESOLUTION

Resolved, That upon adoption of this resolution the bill (H.R. 1308) to amend the Internal Revenue Code of 1986 to end certain abusive tax practices, to provide tax relief and simplification, and for other purposes, with the Senate amendments thereto, be, and the same are hereby, taken from the Speaker's table to the ends that the Senate amendment to the title be, and the same is hereby, agreed to, and the Senate amendment to the text be, and the same is hereby, agreed to with the amendment printed in the report of the Committee on Rules accompanying this resolution.

Sec. 2. It shall be in order for the chairman of the Committee on Ways and Means to move that the House insist on its amendment to the Senate amendment to H.R. 1308, or that the House disagree to any further Senate amendment, and request or agree to a conference with the Senate thereon.


SUMMARY OF AMENDMENT

Thomas (CA):

Increases the child credit to $1,000 per eligible child through 2010. The $1,000 child credit is scheduled to sunset in 2005. It will gradually increase back to $1,000 by 2010. Ensures that the child credit stays at the $1,000 level through 2010.

Eliminates the marriage penalty in the child credit. The phase-out thresholds of the child credit create a marriage penalty for married couples with incomes over $110,000. Millions of children are denied the child credit because of this penalty. Eliminates the marriage penalty by raising the phase-out threshold for married couples to $150,000.

Accelerates the increase in the refundable child credit. Under present law, the child credit is refundable by an amount equal to 10% of earned income in excess of $10,500. The 10% rate is scheduled to increase to 15% in 2005. The amendment accelerates this increase so that the 15% rate takes effect in 2003 instead of 2005.

Provides tax relief and enhances tax fairness for Members of the Armed Forces. The amendment includes the military tax relief provisions that have passed the House and are awaiting action in the Senate. These provisions include capital gains tax relief on home sales, tax-free death gratuity payments, and tax-free dependent care assistance for members of the military.

Suspends the tax-exempt status of designated terrorist organizations. The amendment provides that the tax-exempt status of an organization is automatically suspended during any period in which the organization is designated as a terrorist organization or is listed in or designated by an Executive Order as supporting terrorism.

Provides tax relief for astronauts who die on space missions. The amendment extends the income and estate tax relief provisions of the "Victims of Terrorism Tax Relief Act of 2002" to astronauts who lose their lives in a space shuttle mission, including those who lost their lives in the space shuttle Columbia disaster.

TEXT OF THE AMENDMENT(.pdf)