108th CONGRESS
2d Session
H. R. 4629
To amend the Internal Revenue Code of 1986 to modify the alternative
minimum tax on individuals by permitting the deduction for State and local taxes
and to adjust the exemption amounts for inflation.
IN THE HOUSE OF REPRESENTATIVES
June 21, 2004
Mr. GARRETT of New Jersey (for himself, Mr. FEENEY, Mr. CHOCOLA, Mr. WILSON
of South Carolina, Mr. SHADEGG, Mr. HOSTETTLER, Mr. PENCE, Mr. FRANKS of Arizona,
Mr. ISTOOK, Mrs. CUBIN, Mr. GOODE, Mr. DOOLITTLE, Mr. BURTON of Indiana, Mr.
KINGSTON, Mr. NORWOOD, Mrs. MUSGRAVE, Mr. WELDON of Florida, Mr. ENGLISH, Mr.
PAUL, Mr. WOLF, Mr. SOUDER, and Mr. ISAKSON) 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 modify the alternative
minimum tax on individuals by permitting the deduction for State and local taxes
and to adjust the exemption amounts for inflation.
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 `AMT Middle Class Fairness Act of 2004'.
SEC. 2. MODIFICATIONS TO ALTERNATIVE MINIMUM TAX ON INDIVIDUALS.
(a) REPEAL OF LIMIT ON DEDUCTION FOR STATE AND LOCAL TAXES- Subparagraph (A)
of section 56(b)(1) of the Internal Revenue Code of 1986 is amended to read
as follows:
`(A) IN GENERAL- No deduction shall be allowed for any miscellaneous itemized
deduction (as defined in section 67(b)).'.
(b) ADJUSTMENT FOR INFLATION- Subsection (d) of section 55 of such Code is amended
by adding at the end the following new paragraph:
`(4) INFLATION ADJUSTMENT-
`(A) IN GENERAL- In the case of a taxable year beginning in a calendar year
after 2004, each of the dollar amounts contained in subparagraphs (A) and
(B) of paragraph (1) shall be increased by an amount equal to--
`(i) such dollar amount, multiplied by
`(ii) the cost-of-living adjustment determined under section 1(f)(3) for
the calendar year in which the taxable year begins, determined by substituting
`calendar year 2003' for `calendar year 1992' in subparagraph (B) thereof.
`(B) ROUNDING- Any increase determined under subparagraph (A) shall be rounded
to the nearest multiple of $100.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable
years beginning after December 31, 2004.
END
