To amend the Internal Revenue Code of 1986 to make permanent the increase in the standard deduction, the increase in and modifications of the child tax credit, and the repeal of the deduction for personal exemptions contained in Public Law 115-97.

I 116TH CONGRESS 1ST SESSION H. R. 22 To amend the Internal Revenue Code of 1986 to make permanent the increase in the standard deduction, the increase in and modifications of the child tax credit, and the repeal of the deduction for personal exemptions contained in Public Law 115–97. IN THE HOUSE OF REPRESENTATIVES JANUARY 3, 2019 Mr. BRADY 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 make permanent the increase in the standard deduction, the increase in and modifications of the child tax credit, and the repeal of the deduction for personal exemptions contained in Public Law 115–97. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. INCREASE IN STANDARD DEDUCTION. 3 (a) IN GENERAL.—Section 63(c)(2) of the Internal 4 Revenue Code of 1986 is amended— 5 (1) by striking ‘‘$4,400’’ in subparagraph (B) 6 and inserting ‘‘$18,000’’; and 7 VerDate Sep 11 2014 00:50 Jan 08, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H22.IH H22 kjohnson on DSK79L0C42 with BILLS 2 •HR 22 IH (2) by striking ‘‘$3,000’’ in subparagraph (C) 1 and inserting ‘‘$12,000’’. 2 (b) INFLATION ADJUSTMENT.—Section 63(c)(4) of 3 such Code is amended to read as follows: 4 ‘‘(4) ADJUSTMENTS FOR INFLATION.— 5 ‘‘(A) IN GENERAL.—In the case of a tax- 6 able year beginning after 2018, each dollar 7 amount in paragraph (2)(B), (2)(C), or (5) or 8 subsection (f) shall be increased by an amount 9 equal to— 10 ‘‘(i) such dollar amount, multiplied by 11 ‘‘(ii) the cost-of-living adjustment de- 12 termined under section 1(f)(3) for the cal- 13 endar year in which the taxable year be- 14 gins, determined by substituting for ‘2016’ 15 in subparagraph (A)(ii) thereof— 16 ‘‘(I) in the case of the dollar 17 amounts contained in paragraph 18 (2)(B) or (2)(C), ‘2017’, 19 ‘‘(II) in the case of the dollar 20 amounts contained in paragraph 21 (5)(A) or subsection (f), ‘1987’, and 22 ‘‘(III) in the case of the dollar 23 amount contained in paragraph 24 (5)(B), ‘1997’. 25 VerDate Sep 11 2014 00:50 Jan 08, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H22.IH H22 kjohnson on DSK79L0C42 with BILLS 3 •HR 22 IH ‘‘(B) ROUNDING.—If any increase under 1 subparagraph (A) is not a multiple of $50, such 2 increase shall be rounded to the next lowest 3 multiple of $50.’’. 4 (c) CONFORMING AMENDMENTS.— 5 (1) Section 1(f)(7)(A) of such Code is amended 6 by striking ‘‘section 63(c)(4),’’. 7 (2) Section 1(f)(7)(B) of such Code is amended 8 by striking ‘‘sections 63(c)(4) and’’ and inserting 9 ‘‘section’’. 10 (3) Section 63(c) of such Code is amended by 11 striking paragraph (7). 12 (d) EFFECTIVE DATE.—The amendments made by 13 this section shall apply to taxable years beginning after 14 December 31, 2017. 15 SEC. 2. INCREASE IN AND MODIFICATION OF CHILD TAX 16 CREDIT. 17 (a) IN GENERAL.—Section 24 of the Internal Rev- 18 enue Code of 1986 is amended by striking subsections (a), 19 (b), and (c) and inserting the following new subsections: 20 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al- 21 lowed as a credit against the tax imposed by this chapter 22 for the taxable year an amount equal to the sum of— 23 ‘‘(1) $2,000 for each qualifying child of the tax- 24 payer, and 25 VerDate Sep 11 2014 00:50 Jan 08, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H22.IH H22 kjohnson on DSK79L0C42 with BILLS 4 •HR 22 IH ‘‘(2) $500 for each qualifying dependent (other 1 than a qualifying child) of the taxpayer. 2 ‘‘(b) LIMITATION BASED ON ADJUSTED GROSS IN- 3 COME.—The amount of the credit allowable under sub- 4 section (a) shall be reduced (but not below zero) by $50 5 for each $1,000 (or fraction thereof) by which the tax- 6 payer’s modified adjusted gross income exceeds $400,000 7 in the case of a joint return ($200,000 in any other case). 8 For purposes of the preceding sentence, the term ‘modi- 9 fied adjusted gross income’ means adjusted gross income 10 increased by any amount excluded from gross income 11 under section 911, 931, or 933. 12 ‘‘(c) QUALIFYING CHILD; QUALIFYING DEPEND- 13 ENT.—For purposes of this section— 14 ‘‘(1) QUALIFYING CHILD.—The term ‘qualifying 15 child’ means any qualifying dependent of the tax- 16 payer— 17 ‘‘(A) who is a qualifying child (as defined 18 in section 7706(c)) of the taxpayer, 19 ‘‘(B) who has not attained age 17 at the 20 close of the calendar year in which the taxable 21 year of the taxpayer begins, and 22 ‘‘(C) whose name and social security num- 23 ber are included on the taxpayer’s return of tax 24 for the taxable year. 25 VerDate Sep 11 2014 00:50 Jan 08, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H22.IH H22 kjohnson on DSK79L0C42 with BILLS 5 •HR 22 IH ‘‘(2) QUALIFYING DEPENDENT.—The term 1 ‘qualifying dependent’ means any dependent of the 2 taxpayer (as defined in section 7706 without regard 3 to all that follows ‘resident of the United States’ in 4 section 7706(b)(3)(A)) whose name and TIN are in- 5 cluded on the taxpayer’s return of tax for the tax- 6 able year. 7 ‘‘(3) SOCIAL SECURITY NUMBER DEFINED.— 8 For purposes of this subsection, the term ‘social se- 9 curity number’ means, with respect to a return of 10 tax, a social security number issued to an individual 11 by the Social Security Administration, but only if 12 the social security number is issued— 13 ‘‘(A) to a citizen of the United States or 14 pursuant to subclause (I) (or that portion of 15 subclause (III) that relates to subclause (I)) of 16 section 205(c)(2)(B)(i) of the Social Security 17 Act, and 18 ‘‘(B) on or before the due date of filing 19 such return.’’. 20 (b) PORTION OF CREDIT REFUNDABLE.— 21 (1) IN GENERAL.—Section 24(d)(1)(A) of the 22 Internal Revenue Code of 1986 is amended to read 23 as follows: 24 VerDate Sep 11 2014 00:50 Jan 08, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H22.IH H22 kjohnson on DSK79L0C42 with BILLS 6 •HR 22 IH ‘‘(A) the credit which would be allowed 1 under this section determined— 2 ‘‘(i) by substituting ‘$1,400’ for 3 ‘$2,000’ in subsection (a)(1), 4 ‘‘(ii) without regard to subsection 5 (a)(2), and 6 ‘‘(iii) without regard to this subsection 7 and the limitation under section 26(a), 8 or’’. 9 (2) MODIFICATION OF LIMITATION BASED ON 10 EARNED INCOME.—Section 24(d)(1)(B)(i) of such 11 Code is amended by striking ‘‘$3,000’’ and inserting 12 ‘‘$2,500’’. 13 (3) INFLATION ADJUSTMENT.—Section 24(d) of 14 such Code is amended by inserting after paragraph 15 (3) the following new paragraph: 16 ‘‘(4) ADJUSTMENT FOR INFLATION.— 17 ‘‘(A) IN GENERAL.—In the case of a tax- 18 able year beginning after 2018, the $1,400 19 amount in paragraph (1)(A)(i) shall be in- 20 creased by an amount equal to— 21 ‘‘(i) such dollar amount, multiplied by 22 ‘‘(ii) the cost-of-living adjustment de- 23 termined under section 1(f)(3) for the cal- 24 endar year in which the taxable year be- 25 VerDate Sep 11 2014 00:50 Jan 08, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H22.IH H22 kjohnson on DSK79L0C42 with BILLS 7 •HR 22 IH gins, determined by substituting ‘2017’ for 1 ‘2016’ in subparagraph (A)(ii) thereof. 2 ‘‘(B) ROUNDING.—If any increase under 3 subparagraph (A) is not a multiple of $100, 4 such increase shall be rounded to the next low- 5 est multiple of $100. 6 ‘‘(C) LIMITATION.—The amount of any in- 7 crease under subparagraph (A) (after the appli- 8 cation of subparagraph (B)) shall not exceed 9 $600.’’. 10 (4) CONFORMING AMENDMENTS.— 11 (A) Section 24(e) of such Code is amended 12 to read as follows: 13 ‘‘(e) TAXPAYER IDENTIFICATION REQUIREMENT.— 14 No credit shall be allowed under this section if the identi- 15 fying number of the taxpayer was issued after the due date 16 for filing the return of tax for the taxable year.’’. 17 (B) Section 24 of such Code is amended by 18 striking subsection (h). 19 (c) EFFECTIVE DATE.—The amendments made by 20 this section shall apply to taxable years beginning after 21 December 31, 2017. 22 VerDate Sep 11 2014 00:50 Jan 08, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H22.IH H22 kjohnson on DSK79L0C42 with BILLS 8 •HR 22 IH SEC. 3. ELIMINATION OF DEDUCTION FOR PERSONAL EX- 1 EMPTIONS. 2 (a) IN GENERAL.—Section 151(d)(5) of the Internal 3 Revenue Code of 1986 is amended by striking ‘‘, and be- 4 fore January 1, 2026’’. 5 (b) CONFORMING AMENDMENTS.— 6 (1) Section 152(d)(1)(B) is amended by insert- 7 ing after ‘‘section 151(d))’’ the following: ‘‘or, in the 8 case of a taxable year for which the exemption 9 amount is zero, the dollar amount in effect for the 10 taxable year under section 6334(d)(4)(B)’’. 11 (2) The heading of section 151(d)(5) of such 12 Code is amended by striking ‘‘2018 THROUGH 2025’’ 13 and inserting ‘‘AFTER 2017’’. 14 (3) The second sentence of section 15 6334(d)(4)(C) is amended by striking ‘‘$100’’ each 16 place it appears and inserting ‘‘$50’’. 17 (c) EFFECTIVE DATE.—The amendments made by 18 this section shall apply to taxable years beginning after 19 December 31, 2017. 20 Æ VerDate Sep 11 2014 00:50 Jan 08, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\H22.IH H22 kjohnson on DSK79L0C42 with BILLS