ELIMINATION OF MARRIAGE PENALTY IN STANDARD DEDUCTION.

SEC. 301. ELIMINATION OF MARRIAGE PENALTY IN STANDARD DEDUCTION. (a) In General.—Paragraph (2) of section 63(c) (relating to standard deduction) is amended— (1) by striking “$5,000” in subparagraph (A) and inserting “the applicable percentage of the dollar amount in effect under subparagraph (C) for the taxable year”; (2) by adding “or” at the end of subparagraph (B); (3) by striking “in the case of” and all that follows in subparagraph (C) and inserting “in any other case.”; and (4) by striking subparagraph (D). (b) Applicable Percentage.—Section 63(c) (relating to standard deduction) is amended by adding at the end the following new paragraph: “(7) Applicable percentage.—For purposes of paragraph (2), the applicable percentage shall be determined in accordance with the following table: “For taxable years beginning in calendar year— The applicable percentage is— 2005 174 2006 184 2007 187 2008 190 2009 and thereafter 200.”. 115 STAT. 54 (c) Technical Amendments.— (1) Subparagraph (B) of section 1(f)(6) is amended by striking “(other than with” and all that follows through “shall be applied” and inserting “(other than with respect to sections 63(c)(4) and 151(d)(4)(A)) shall be applied”. (2) Paragraph (4) of section 63(c) is amended by adding at the end the following flush sentence: “The preceding sentence shall not apply to the amount referred to in paragraph (2)(A).”. (d) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2004.