REVISION OF TAX TABLES FOR INDIVIDUALS.

SEC. 501. REVISION OF TAX TABLES FOR INDIVIDUALS. (a) In General.— Section 3 (relating to optional tax tables for individuals) is amended to read as follows: “SEC. 3. TAX TABLES FOR INDIVIDUALS HAVING TAXABLE INCOME OF LESS THAN $20,000. “(a) General Rule.— In lieu of the tax imposed by section 1, there is hereby imposed for each taxable year on the taxable income of every individual whose taxable income for such year does not exceed $20,000, a tax determined under tables, applicable, to such taxable year, which shall be prescribed by the Secretary. in the tables so prescribed, the amounts of tax shall be computed on the basis of the rates prescribed by section 1. “(b) Tax Treated as Imposed by Section 1.— For purposes of this title, the tax imposed by this section shall be treated as tax imposed by section 1.” (b) Conforming Amendments.— (1) Section 4 (relating to rules for optional tax) is hereby repealed. (2) Section 36 (relating to credits not allowed to individuals paying optional tax or taking standard deduction) is amended— (A) by Striking out “PAYING OPTIONAL TAX OR” in the heading; and (B) by striking out “elects to pay the optional tax imposed by section 3, or if he” in such section. (3) Subsection (a) of section 144 (relating to election of standard deduction) is amended to read as follows: “(a) Method of Election.— The standard deduction shall be allowed if the taxpayer so elects in his return, and the Secretary shall prescribe the manner of signifying such election in the return. ”. (4) Subsection (c) of section 144 is amended— (A) by striking out paragraph (2); (B) by inserting “or” at the end of paragraph (1); and 90 STAT. 1559 (C) by redesignating paragraph (3) as paragraph (2). (5) Subsection (d) of section 144 is hereby repealed. (6) Section 1211(b)(3) (relating to computation of taxable income for purposes of limitation on capital losses) is amended by striking out the last sentence thereof. (7) Section 1304(b) (relating to certain provisions inapplicable for income averaging) is amended by striking out paragraph (I) and by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (1), (2), (3), and (4), respectively. (8) Section 6014(a) (relating to tax not computed by taxpayer) is amended— (A) by striking out in the first sentence “entitled to elect to pay The tax imposed by section 3” and inserting in lieu thereof “entitled to take the standard deduction provided by section 141 (other than an individual described in section 141(e))”; and (B) by striking out in the second sentence “pay the tax imposed by section 3” and inserting in lieu thereof “take the standard deduction”. (9) Paragraph (5) of section 6014(b) is amended to read as follows: “(5) to cases where the taxpayer does not elect the standard deduction or where the taxpayer elects the standard deduction but is subject to the provisions of section 141(e) (relating to limitations in case of certain dependent taxpayers).” (c) Clerical Amendments.— (1) The table of sections for part I of subchapter A of chapter 1 is amended by striking out the items relating to sections 3 and 4 and inserting in lieu thereof: “Sec. 3. Tax tables for individuals having taxable income of less than 520.000.” (2) The table of sections for part IV of subchapter A of chapter 1 is amended by striking out “paying optional tax or” in the item relating to section 36.