Page:United States Statutes at Large Volume 89.djvu/1031

 PUBLIC LAW 9 4 - 1 6 4 — D E C. 23, 1975 (A) graph (B) graph (C) graph (b)

89 STAT. 971

by striking out "$2,350" in clause (i) of such paraa n d inserting in lieu thereof "$2,450"; by striking out "$2,650" in clause (ii) of such paraa n d inserting in lieu thereof "$2,850"; and by striking out "$3,400" in clause (iii) of such paraand inserting in lieu thereof "$3,600".

PERCENTAGE STANDARD DEDUCTION.—

(1) INCREASE.—Subsection (b) of section 141 of such Code (relating to percentage standard deduction) is amended to read as follows: "(b)

26 USC 141.

PERCENTAGE STANDARD DEDUCTION.—

" (1) GENERAL RULE.—The percentage standard deduction is an amount equal to 16 percent of adjusted gross income but not to exceed— " (A) $2,800 in the case of— " (i) a joint return under section 6013, or " ( i i) a surviving spouse (as defined in section 2(a)), " (B) $2,400 in the case of an individual who is not married and who is not a surviving spouse (as so defined), or " (C) $1,400 in the case of a married individual filing a separate return.

26 USC 6013.

" (2) APPLICATION OF 6-MONTH RULE.—Notwithstanding the pro-

visions of paragraph (1) of this subsection, the following amounts shall be substituted for the amounts set forth in paragraph (1) — " (A) '$2,400' for '$2,800' in subparagraph (A), " (B) '$2,200' for '$2,400' in subparagraph (B), and " (C) '$1,200' for '$1,400' in subparagraph (C). ". (2) CONFORMING AMENDMENTS.—Section 3402(m) of such Code (relating to withholding allowances based on itemized deductions) is amended— (A) by striking out "$2,600" in paragraph (1)(B) and inserting in lieu thereof "$2,800", and (B) by striking out "$2,300" in such paragraph and inserting in lieu thereof "$2,400". (c) EARNED INCOME CREDIT.—Subsections (a) and

26 USC 3402.

(b) of section

43 o i such Code (relating to earned income credit) are amended to 26 USC 43. read as follows: " (a) ALLOWANCE OF CREDIT.—

" (1) GENERAL RULE.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 10 percent of so much of the earned income for the taxable year as does not exceed $4,000. "(2)

APPLICATION OF 6-MONTH RULE.—Notwithstanding

the

provisions of paragraph (1), the term '5 percent' shall be substituted for the term '10 percent' where it appears in that paragraph.". "(b) LIMITATION.—

" (1) GENERAL RULE.—The amount of the credit allowable to a tax p a y e r under subsection (a) for any taxable year shall be reduced (but not below zero) by an amount equal to 10 percent of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds $4,000. "(2)

APPLICATION OF e-MONTH RULE. — Notwithstanding

the

provisions of paragraph (1), the term '5 percent' shall be substituted for the term '10 percent' where it appears in that paragraph.".

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