,,ii  #aaeth ,,congress  #ast ,session  
,s4 #ahdi  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #ai1
 #bjag,mr4 ,brown introduced the        
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to modify the   
earned income tax credit to account for 
the amount by which economic growth has 
outpaced income growth1 and for other   
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,grow ,american     
,incomes ,now ,act of #bjag or the      
,,gain ,act of #bjag4  #b4 ,modification
 of earned income tax credit  7a7 ,in   
general  7#a7 ,increase in credit       
percentage ,the table in section        
#cb7;b77#a7 of the ,internal ,revenue   
,code of #aihf is amended--  7,a7 by    
striking #g4fe in the second column     
7relating to credit percentage7 and     
inserting #cj2  7,b7 by striking #g4fe  
in the third column 7relating to        
phaseout percentage7 and inserting      

#ae4ih2  7,c7 by striking #cd and       
inserting #fe4bh2  7,d7 by striking #dj 
and inserting #gf4hj2 and  7,e7 by      
striking #de and inserting #hf4dj4  7#b7
 ,earned income amount and phaseout     
amount  7,a7 ,in general ,subparagraph  
7,a7 of section #cb7;b77#b7 of such     
,code is amended by striking ,subject to
 subparagraph 7,b71 the earned income   
amount and the phaseout amount and      
inserting 8,subject to subparagraph     
7,b7--  7i7 ,phaseout amount ,the       
phaseout amount is #ah1cdj4  7ii7       
,earned income amount ,the earned income
 amount  4  7,b7 ,credit phase-in ends  
,section #cb7;b77#b77;,a77ii7 of such   
,code1 as amended by subparagraph 7,a71 
is further amended by striking the table
 and inserting the following3  ,in the  
case of an,the earned income eligible   
individual with3amount is3#a qualifying 
child#aj1jjjb or more qualifying        
children#ad1jdj,no qualifying           
children#aj1jjj4 4  7b7 ,eligibility age
 ,subclause 7,,ii7 of section           

#cb7;c77#a77;,a77ii7 of the ,internal   
,revenue ,code of #aihf is amended by   
striking #be and inserting #ba4  7c7    
,conforming and technical amendment     
,paragraph 7#a7 of section #cb7;j7 of   
the ,internal ,revenue ,code of #aihf is
 amended to read as follows3  7#a7 ,in  
general ,in the case of any taxable year
 beginning after #bjaf1 each of the     
dollar amounts in subsections 7b77#b7   
and 7i77#a7 shall be increased by an    
amount equal to--  7,a7 such dollar     
amount1 multiplied by  7,b7 the         
cost-of-living adjustment determined    
under section #a7;f77#c7 for the        
calendar year in which the taxable year 
begins1 determined--  7i7 in the case of
 amounts in subsection 7b77#b77;,a71 by 
substituting calendar year #bjaf for    
calendar year #aiib in subparagraph 7,b7
 thereof1 and  7ii7 in the case of      
amounts in subsection 7i77#a71 by       
substituting calendar year #aiie for    
calendar year #aiib in subparagraph 7,b7
 thereof4  4  7d7 ,effective date ,the  

amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjaf4  #c4 ,advance     
payment of earned income credit  7a7 ,in
 general ,chapter #be of subtitle ,c of 
the ,internal ,revenue ,code of #aihf is
 amended by inserting after section     
#cejf the following new section3  #cejg4
 ,advance payment of earned income      
credit  7a7 ,advance payment  7#a7 ,in  
general ,an employer making payment of  
wages to an employee with respect to    
whom an eligibility certificate is in   
effect shall1 at the time of paying such
 wages for the payroll period elected by
 the employee under paragraph 7#b71 make
 an additional lump sum payment to such 
employee equal to the earned income     
advance amount 7except as provided in   
subsection 7b77#a77;,c77ii77 of such    
employee4  7#b7 ,payments available     
after #f months of employment during    
calendar year ,for purposes of paragraph
 7#a71 an employee with respect to whom 
an eligibility certificate is in effect 

for the calendar year may elect to      
receive the earned income advance amount
 at the same time as wages for any      
payroll period which begins after the   
employee has been paid wages by the     
employer for a period of not less than  
#f months during such calendar year4    
7b7 ,eligibility certificate  7#a7 ,in  
general ,for purposes of this section1  
an eligibility certificate is a         
statement submitted by an employee to   
the employer which--  7,a7 certifies    
that the employee is eligible to receive
 the credit provided by section #cb for 
the taxable year1  7,b7 certifies that  
the employee does not have an           
eligibility certificate in effect for   
the calendar year with respect to the   
payment of wages by another employer1   
and  7,c7 certifies that-- 7i7 an       
eligibility certificate has not been in 
effect for the spouse of the employee on
 any date during the calendar year1 or  
7ii7 such a certificate is in effect for
 the spouse of the employee1 and the    

employee is eligible to receive only    
#a_/b the earned income advance amount  
otherwise determined with respect to the
 employee4  7#b7 ,employer not          
responsible for verification ,for       
purposes of this section1 an employer   
shall not-- 7,a7 be required to verify  
any certification made by an employee in
 the statement described in paragraph   
7#a71 or  7,b7 be held liable for any   
false claims or statements made by an   
employee in regards to such statement4  
7c7 ,earned income advance amount  7#a7 
,determination of amount  7,a7 ,in      
general ,subject to subparagraph 7,b71  
the term earned income advance amount   
means1 with respect to any payroll      
period1 the amount determined--  7i7 on 
the basis of the wages of the employee  
from the employer during such calendar  
year through such payroll period1 and   
7ii7 in accordance with tables issued by
 the ,secretary4  7,b7 ,limitation ,for 
each calendar year1 except as provided  
in subparagraph 7,c71 the earned income 

advance amount shall not exceed #ejj4   
7,c7 ,adjustment for inflation  7i7 ,in 
general ,in the case of any taxable year
 beginning after #bjai1 the #ejj amount 
in subparagraph 7,b7 shall be increased 
by an amount equal to--  7,i7 such      
dollar amount1 multiplied by  7,,ii7 the
 cost-of-living adjustment determined   
under section #a7;f77#c7 for the        
calendar year in which the taxable year 
begins determined by substituting       
calendar year #bjah for calendar year   
#aiib in subparagraph 7,b7 thereof4     
7ii7 ,rounding ,if any increase         
determined under paragraph 7#a7 is not a
 multiple of #aj1 such increase shall be
 rounded to the nearest multiple of #aj4
  7#b7 ,armed ,forces ,in the case of an
 employee who is a member of the ,armed 
,forces of the ,united ,states1 the     
earned income advance amount shall be   
determined by taking into account the   
total wages of such employee1 as        
determined for purposes of section #cb4 
7#c7 ,advance amount tables ,for        

purposes of paragraph 7#a77;,a77ii71 the
 tables issued by the ,secretary shall  
be similar in form to the tables issued 
under section #cdjb and1 to the extent  
feasible1 coordinated with such tables4 
7d7 ,payments ,to be treated as payments
 of withholding and ,,fica taxes  7#a7  
,in general ,payments made by an        
employer under subsection 7a7 to an     
employee-- 7,a7 shall not be treated as 
payment of compensation1 and  7,b7 shall
 be treated as made out of-- 7i7 amounts
 required to be deducted and withheld   
for the payroll period under section    
#cdja1  7ii7 amounts required to be     
deducted for the payroll period under   
section #cajb1 and  7iii7 amounts of the
 taxes imposed for the payroll period   
under section #caaa1  as if the employer
 had paid to the ,secretary1 on the day 
on which the wages are paid to the      
employee1 an amount equal to such       
payments4  7#b7 ,advance payments exceed
 taxes due ,in the case of any employer1
 if for any payroll period the aggregate

 amount of earned income advance        
payments exceeds the sum of the amounts 
referred to in paragraph 7#a77;,b71 the 
employer shall pay only so much of such 
earned income advance payment as does   
not exceed such sum1 and shall not make 
any further advance payments to the     
employee for the calendar year4  7#c7   
,failure to make advance payments       
,failure to make any payment of an      
earned income advance amount as required
 under this section shall be treated as 
the failure at such time to deduct and  
withhold under chapter #bd an amount    
equal to the earned income advance      
amount4  7e7 ,submission of certificate 
7#a7 ,effective period ,an eligibility  
certificate submitted to an employer at 
any time during the calendar year shall 
continue in effect with respect to the  
employee during such calendar year until
 revoked by the employee or until       
another such certificate takes effect   
under this section4  7#b7 ,requirement  
to revoke certificate ,in the case of an

 employee who has submitted an          
eligibility certificate under this      
section and subsequently becomes        
ineligible for the credit provided under
 section #cb for the taxable year1 the  
employee shall1 not later than #aj days 
after becoming ineligible for such      
credit1 submit to the employer a        
revocation of such certificate4  7#c7   
,form and contents of certificate       
,eligibility certificates shall be in   
such form and contain such other        
information as the ,secretary may by    
regulations prescribe4  7f7 ,taxpayers  
making prior fraudulent or reckless     
claims  7#a7 ,in general ,no earned     
income advance amount shall be paid     
under this section for any taxable year 
in the disallowance period4  7#b7       
,disallowance period ,for purposes of   
paragraph 7#a71 the disallowance period 
is-- 7,a7 the period of #aj taxable     
years after the most recent taxable year
 for which there was a final            
determination that the taxpayer's claim 

of an earned income advance amount under
 this section was due to fraud1 and     
7,b7 the period of #b taxable years     
after the most recent taxable year for  
which there was a final determination   
that the taxpayer's claim of an earned  
income advance amount under this section
 was due to reckless or intentional     
disregard of rules and regulations 7but 
not due to fraud74  7g7 ,taxable year   
,the term taxable year means the last   
taxable year of the employee under      
subtitle ,a beginning in the calendar   
year in which the wages are paid4  7h7  
,,irs ,notification ,the ,internal      
,revenue ,service shall take such steps 
as may be appropriate to ensure that    
taxpayers who receive a refund of the   
credit under section #cb are aware of   
the availability of earned income       
advance amounts under this section4  4  
7b7 ,coordination with advance payments 
,section #cb of the ,internal ,revenue  
,code of #aihf is amended by inserting  
after subsection 7f7 the following new  

subsection3  7g7 ,coordination with     
advance payments of earned income credit
  7#a7 ,recapture of advance payments   
,if any payment is made to the          
individual by an employer under section 
#cejg during any calendar year1 then the
 tax imposed by this chapter for the    
individual's last taxable year beginning
 in such calendar year shall be         
increased by the aggregate amount of    
such payments4  7#b7 ,reconciliation of 
payments advanced and credit allowed    
,any increase in tax under paragraph    
7#a7 shall not be treated as tax imposed
 by this chapter for purposes of        
determining the amount of any credit    
7other than the credit allowed by       
subsection 7a77 allowable under this    
part4  4  7c7 ,filing requirement       
,section #fjab7;a7 of the ,internal     
,revenue ,code of #aihf is amended by   
inserting after paragraph 7#h7 the      
following new paragraph3  7#i7 ,every   
individual who receives payments during 
the calendar year in which the taxable  

year begins under section #cejg4  4  7d7
 ,receipts for employees ,section       
#fjea7;a7 of the ,internal ,revenue     
,code of #aihf is amended by inserting  
after paragraph 7#f7 the following new  
paragraph3  7#g7 the total amount paid  
to the employee under section #cejg     
7relating to advance payment of earned  
income credit71  4  7e7 ,clerical       
amendment ,the table of sections for    
chapter #be of subtitle ,c of the       
,internal ,revenue ,code of #aihf is    
amended by inserting after the item     
relating to section #cejf the following 
new item3  ,sec4 #cejg4 ,advance payment
 of earned income credit4  4  7f7       
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after the date which is 
#a year after the date of the enactment 
of this ,act4