text: SECTION 1. INCREASE IN MAXIMUM TAXABLE INCOME FOR 15 PERCENT RATE 
                BRACKET.
  
      (a) In General.--Section 1(f) of the Internal Revenue Code of 1986 
  (relating to adjustments in tax tables so that inflation will not 
  result in tax increases) is amended--
              (1) in paragraph (2)--
                      (A) by redesignating subparagraphs (B) and (C) as 
                  subparagraphs (C) and (D),
                      (B) by inserting after subparagraph (A) the 
                  following:
                      ``(B) for taxable years beginning in any calendar 
                  year after 1999 and before 2010--
                              ``(i) in the case of the table contained in 
                          subsection (c), by increasing the maximum 
                          dollar amount for the 15 percent rate bracket 
                          and the minimum dollar amount for the 28 
                          percent rate bracket otherwise determined under 
                          subparagraph (A) by the applicable dollar 
                          amount for such calendar year, and
                              ``(ii) in the case of the tables contained 
                          in subsections (a), (b), and (d), by increasing 
                          the maximum and minimum dollar amounts for the 
                          15 and 28 percent rate brackets, respectively, 
                          by an amount which maintains the same 
                          proportionate differential in such dollar 
                          amounts among the tables in subsections (a), 
                          (b), (c), and (d) as existed in calendar year 
                          1999,'', and
                      (C) by striking ``subparagraph (A)'' in 
                  subparagraph (C) (as so redesignated) and inserting 
                  ``subparagraphs (A) and (B)'', and
              (2) by adding at the end the following:
              ``(8) Applicable dollar amount.--
                      ``(A) In general.--For purposes of paragraph 
                  (2)(B), the applicable dollar amount for any calendar 
                  year is equal to the applicable percentage of the 
                  excess of--
                              ``(i) the contribution and benefit base (as 
                          determined under section 230 of the Social 
                          Security Act) for the calendar year, over
                              ``(ii) the maximum dollar amount for the 15 
                          percent rate bracket for the table contained in 
                          subsection (c) for the calendar year otherwise 
                          determined under paragraph (2)(A).
                      ``(B) Applicable percentage.--For purposes of 
                  subparagraph (A), the applicable percentage for any 
                  calendar year shall be determined as follows:
  
                                                               Applicable
  ``Calendar year:                                            Percentage:
      2000..........................................                  10 
      2001..........................................                  20 
      2002..........................................                  30 
      2003..........................................                  40 
      2004..........................................                  50 
      2005..........................................                  60 
      2006..........................................                  70 
      2007..........................................                  80 
      2008..........................................                  90 
      2009..........................................               100.''
      (b) Effective Date.--The amendments made by this section shall take 
  effect on the date of the enactment of this Act.
  
  SEC. 2. USE OF NATIONAL AVERAGE WAGE INDEX FOR COST-OF-LIVING 
                ADJUSTMENTS.
  
      (a) In General.--Section 1(f) of the Internal Revenue Code of 1986 
  (relating to adjustments in tax tables so that inflation will not 
  result in tax increases) is amended by striking paragraphs (3), (4), 
  and (5) and inserting the following:
              ``(3) Cost-of-living adjustment.--For purposes of paragraph 
          (2), the cost-of-living adjustment for any calendar year is the 
          percentage (if any) by which--
                      ``(A) the national average wage index for the 
                  preceding calendar year, exceeds
                      ``(B) such index for calendar year 1998.
              ``(4) National average wage index for any calendar year.--
          For purposes of paragraph (3), the national average wage index 
          for any calendar year is the average of such index as of 
  the close of the 12-month period ending on August 31 of such calendar 
  year.
              ``(5) National average wage index.--For purposes of this 
          subsection, the term `national average wage index' has the 
          meaning given such term by section 209(k)(1) of the Social 
          Security Act, as in effect on the date of the enactment of this 
          paragraph.''
      (b) Conforming Amendments to Tax Tables To Restart Inflation 
  Adjustment.--Section 1 of the Internal Revenue Code of 1986 (relating 
  to tax imposed) is amended by striking subsections (a) through (e) and 
  inserting the following:
      ``(a) Married Individuals Filing Joint Returns and Surviving 
  Spouses.--There is hereby imposed on the taxable income of--
              ``(1) every married individual (as defined in section 7703) 
          who makes a single return jointly with his spouse under section 
          6013, and
              ``(2) every surviving spouse (as defined in section 2(a)),
  a tax determined in accordance with the following table:
  
  ``If taxable income is:             The tax is:
      Not over $43,050...............
                                          15% of taxable income.
      Over $43,050 but not over 
          $104,050.
                                          $6,457.50, plus 28% of the 
                                                  excess over $43,050.
      Over $104,050 but not over 
          $158,550.
                                          $23,537.50, plus 31% of the 
                                                  excess over $104,050.
      Over $158,550 but not over 
          $283,150.
                                          $40,432.50, plus 36% of the 
                                                  excess over $158,550.
      Over $283,150..................
                                          $85,288.50 plus 39.6% of the 
                                                  excess over $283,150.
      ``(b) Heads of Households.--There is hereby imposed on the taxable 
  income of every head of a household (as defined in section 2(b)) a tax 
  determined in accordance with the following table:
  
  ``If taxable income is:             The tax is:
      Not over $34,550...............
                                          15% of taxable income.
      Over $34,550 but not over 
          $89,150.
                                          $5,182.50, plus 28% of the 
                                                  excess over $34,550.
      Over $89,150 but not over 
          $144,400.
                                          $20,470.50, plus 31% of the 
                                                  excess over $89,150.
      Over $144,400 but not over 
          $283,150.
                                          $37,598, plus 36% of the excess 
                                                  over $144,400.
      Over $283,150..................
                                          $87,548 plus 39.6% of the 
                                                  excess over $283,150.
      ``(c) Unmarried Individuals (Other Than Surviving Spouses and Heads 
  of Households).--There is hereby imposed on the taxable income of every 
  individual (other than a married individual (as defined in section 
  7703) filing a joint return or a separate return, a surviving spouse as 
  defined in section 2(a), or a head of household as defined in section 
  2(b)) a tax determined in accordance with the following table:
  
  ``If taxable income is:             The tax is:
      Not over $25,750...............
                                          15% of taxable income.
      Over $25,750 but not over 
          $62,450.
                                          $3,862.50, plus 28% of the 
                                                  excess over $25,450.
      Over $62,450 but not over 
          $130,250.
                                          $14,138.50, plus 31% of the 
                                                  excess over $62,450.
      Over $130,250 but not over 
          $283,150.
                                          $35,156.50, plus 36% of the 
                                                  excess over $130,250.
      Over $283,150..................
                                          $90,200.50 plus 39.6% of the 
                                                  excess over $283,150.
      ``(d) Married Individuals Filing Separate Returns.--There is hereby 
  imposed on the taxable income of every married individual (as defined 
  in section 7703) who does not make a single return jointly with his 
  spouse under section 6013, a tax determined in accordance with the 
  following table:
  
  ``If taxable income is:             The tax is:
      Not over $21,175...............
                                          15% of taxable income.
      Over $21,175 but not over 
          $52,025.
                                          $3,228.75, plus 28% of the 
                                                  excess over $21,175.
      Over $52,025 but not over 
          $79,275.
                                          $11,768.75, plus 31% of the 
                                                  excess over $52,025.
      Over $79,275 but not over 
          $141,575.
                                          $20,216.20, plus 36% of the 
                                                  excess over $79,275.
      Over $141,575..................
                                          $42,644.25 plus 39.6% of the 
                                                  excess over $141,575.
      ``(e) Estates and Trusts.--There is hereby imposed on the taxable 
  income of--
              ``(1) every estate, and
              ``(2) every trust,
  taxable under this subsection a tax determined in accordance with the 
  following table:
  
  ``If taxable income is:             The tax is:
      Not over $1,750................
                                          15% of taxable income.
      Over $1,750 but not over $4,050
                                          $262.50, plus 28% of the excess 
                                                  over $1,750.
      Over $4,050 but not over $6,200
                                          $906.50, plus 31% of the excess 
                                                  over $4,050.
      Over $6,200 but not over $8,450
                                          $1,573, plus 36% of the excess 
                                                  over $6,200.
      Over $8,450....................
                                          $2,383, plus 39.6% of the 
                                                  excess over $8,450.''
      (c) Inflation Adjustment To Apply in Determining Rates for 2000.--
  Section 1(f) of the Internal Revenue Code of 1986 is amended--
              (1) by striking ``1993'' in paragraph (1) and inserting 
          ``1999'',
              (2) by striking ``1992'' in paragraph (3)(B) and inserting 
          ``1998'', and
              (3) by striking paragraph (7).
      (d) Conforming Amendments.--
              (1) The following provisions of the Internal Revenue Code 
          of 1986 are each amended by striking ``1992'' and inserting 
          ``1998'' each place it appears:
                      (A) Section 25A(h).
                      (B) Section 32(j)(1)(B).
                      (C) Section 41(e)(5)(C).
                      (D) Section 59(j)(2)(B).
                      (E) Section 63(c)(4)(B).
                      (F) Section 68(b)(2)(B).
                      (G) Section 135(b)(2)(B)(ii).
                      (H) Section 151(d)(4).
                      (I) Section 220(g)(2).
                      (J) Section 221(g)(1)(B).
                      (K) Section 512(d)(2)(B).
                      (L) Section 513(h)(2)(C)(ii).
                      (M) Section 685(c)(3)(B).
                      (N) Section 877(a)(2).
                      (O) Section 911(b)(2)(D)(ii)(II).
                      (P) Section 2032A(a)(3)(B).
                      (Q) Section 2503(b)(2)(B).
                      (R) Section 2631(c)(1)(B).
                      (S) Section 4001(e)(1)(B).
                      (T) Section 4261(e)(4)(A)(ii).
                      (U) Section 6039F(d).
                      (V) Section 6323(i)(4)(B).
                      (W) Section 6601(j)(3)(B).
                      (X) Section 7430(c)(1).
              (2) Subclause (II) of section 42(h)(6)(G)(i) of such Code 
          is amended by striking ``1987'' and inserting ``1998''.
              (3) Clause (ii) of section 132(f)(6)(A) of such Code, as 
          amended by section 9010(b)(1) of the Transportation Equity Act 
          for the 21st Century, is amended by striking ``, by 
          substituting `calendar year 1998' for `calendar year 1992'.'' 
          and by inserting a period.
              (4) Subparagraph (A) of section 132(f)(6) of such Code, as 
          amended by section 9010(c)(2) of the Transportation Equity Act 
          for the 21st Century, is amended by striking clause (ii) and 
          all that follows through ``paragraph (2)(A).'' and inserting:
                              ``(ii) the cost-of-living adjustment 
                          determined under section 1(f)(3) for the 
                          calendar year in which the taxable year begins. 
                          In the case of any taxable year beginning in a 
                          calendar year after 2002, section 1(f)(3) shall 
                          be applied by substituting `calendar year 2001' 
                          for `calendar year 1998' for purposes of 
                          adjusting the dollar amount contained in 
                          paragraph (2)(A).''.
              (5) Subparagraph (B) of section 6334(g)(1) of such Code is 
          amended by striking ``, by substituting `calendar year 1998' 
          for `calendar year 1992' in subparagraph (B) thereof''.
      (e) Additional Conforming Amendments.--
              (1) Section 42(h)(6)(G)(ii) of the Internal Revenue Code of 
          1986 is amended--
                      (A) by striking ``the CPI'' the first and third 
                  places it appears and inserting ``the national average 
                  wage index'',
                      (B) by striking ``the CPI'' the second place it 
                  appears and inserting ``such index'', and
                      (C) by striking ``section 1(f)(4)'' and inserting 
                  ``section 1(f)(5)''.
              (2) Section 162(p)(2) of such Code is amended by striking 
          ``(as defined in section 1(f)(5))''.
              (3) Section 213(d)(10)(B)(ii)(I) of such Code is amended by 
          striking ``(as defined in section 1(f)(5))''.
              (4) The last sentence of section 936(j)(4)(C) of such Code 
          is amended by inserting ``, as in effect for taxable years 
          beginning before January 1, 1999'' before the period.
      (f) Effective Date.--
              (1) In general.--Except as provided in paragraph (2), the 
          amendments made by this section shall apply to taxable years 
          beginning after December 31, 1998.
              (2) Conforming amendment.--The amendment made by subsection 
          (d)(4) shall apply to taxable years beginning after December 
          31, 2001.
  
  SEC. 3. INFLATION ADJUSTMENT FOR INDIVIDUAL ALTERNATIVE MINIMUM TAX 
                EXEMPTION AMOUNTS.
  
      (a) In General.--Section 55(d) of the Internal Revenue Code of 1986 
  (relating to exemption amount) is amended by adding at the end the 
  following:
              ``(4) Inflation adjustment.--
                      ``(A) In general.--In the case of any taxable year 
                  beginning after 1999, each of the dollar amounts 
                  contained in paragraph (1) and paragraph (3) (other 
                  than subparagraph (A)(ii) thereof) 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 such 
                          calendar year.
                      ``(B) Rounding.--If any increase determined under 
                  subparagraph (A) is not a multiple of $50, such 
                  increase shall be rounded to the nearest multiple of 
                  $50.''
      (b) Conforming Amendment.--Section 55(d)(3)(A) of the Internal 
  Revenue Code of 1986 is amended to read as follows:
                      ``(A) $150,000 in the case of a taxpayer described 
                  in--
                              ``(i) paragraph (1)(A), or
                              ``(ii) paragraph (2),''.
      (c) Effective Dates.--
              (1) In general.--The amendment made by subsection (a) shall 
          apply to taxable years beginning after December 31, 1999.
              (2) Conforming amendment.--The amendment made by subsection 
          (b) shall apply to taxable years beginning after December 31, 
          1998.
target: Amends the Internal Revenue Code to: (1) increase the maximum taxable income for the 15 percent rate bracket; (2) replace the Consumer Price Index with the national average wage index for purposes of cost-of-living adjustments; and (3) adjust for inflation the exemption amounts used in calculating the alternative minimum tax.
feat_title: A bill to amend the Internal Revenue Code of 1986 to increase the maximum taxable income for the 15 percent rate bracket, to replace the Consumer Price Index with the national average wage index for purposes of cost-of-living adjustments, to lessen the impact of the noncorporate alternative minimum tax, and for other purposes.