,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #bbgb  ,,in ,,the ,,house ,,of  
,,representatives  ,april #aj1 #bjai,mr4
 ,nadler 7for himself1 ,mrs4 ,lowey1 and
 ,mr4 ,suozzi7 introduced the following 
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to provide for          
adjustments in the individual income tax
 rates to reflect regional differences  
in the cost-of-living4  #a4 ,short title
 ,this ,act may be cited as the ,tax    
,equity ,act of #bjai4  #b4 ,regional   
cost-of-living adjustments in individual
 income tax rates  7a7 ,general ,rule   
,subsection 7f7 of section #a of the    
,internal ,revenue ,code of #aihf is    
amended by adding at the end thereof the
 following new paragraphs3  7#i7        
,regional cost-of-living adjustments    
7,a7 ,in general ,in the case of an     
individual1 for taxable years beginning 
after #bjai the rate table otherwise in 
effect under this section for any       

taxable year 7determined after the      
application of paragraph 7#a77 shall be 
further adjusted as provided in         
subparagraph 7,b74  7,b7 ,method of     
making regional adjustment ,the rate    
table otherwise in effect under this    
section with respect to any individual  
for any taxable year shall be adjusted  
as follows3  7i7 ,the minimum and       
maximum dollar amounts otherwise in     
effect for each rate bracket shall be   
multiplied by the applicable multiplier 
7for the calendar year in which the     
taxable year begins7 which applies to   
the statistical area in which the       
individual's primary place of abode     
during the taxable year is located4     
7ii7 ,the rate applicable to any rate   
bracket 7as adjusted by clause 7i77     
shall not be changed4  7iii7 ,the amount
 setting forth the tax shall be adjusted
 to the extent necessary to reflect the 
adjustments in the rate brackets4  ,if  
any amount determined under clause 7i7  
is not a multiple of #ej1 such amount   

shall be rounded to the nearest multiple
 of #ej4  7#aj7 ,determination of       
multipliers  7,a7 ,in general ,not later
 than ,december #ae of each calendar    
year1 the ,secretary shall prescribe an 
applicable multiplier for each          
statistical area of the ,united ,states 
which shall apply to taxable years      
beginning during the succeeding calendar
 year4  7,b7 ,determination of          
multipliers  7i7 ,for each statistical  
area where the cost-of-living           
differential for any calendar year is   
greater than #abe percent1 the          
applicable multiplier for such calendar 
year is #ij percent of such             
differential4  7ii7 ,for each           
statistical area where the              
cost-of-living differential for any     
calendar year exceeds #ig percent but   
does not exceed #abe percent1 the       
applicable multiplier for such calendar 
year is #a4je4  7iii7 ,for each         
statistical area not described in clause
 7i7 or 7ii71 the applicable multiplier 

is the cost-of-living differential for  
the calendar year4  7,c7 ,cost-of-living
 differential ,the cost-of-living       
differential for any statistical area   
for any calendar year is the percentage 
determined by dividing--  7i7 the       
cost-of-living for such area for the    
preceding calendar year2 by  7ii7 the   
average cost-of-living for the ,united  
,states for the preceding calendar year4
  7,d7 ,cost-of-living for area  7i7 ,in
 general ,for calendar year #bjai and   
each calendar year thereafter1 the      
,secretary of ,labor shall determine and
 publish a cost-of-living index for each
 statistical area4  7ii7 ,methodology   
,the cost-of-living index determined    
under clause 7i7 for any statistical    
area for any calendar year shall be     
based on average market prices for the  
area for the #ab-month period ending on 
,august #ca of such calendar year4 ,the 
market prices taken into account under  
the preceding sentence shall be selected
 and used under the same methodology as 

is used by the ,secretary of ,labor in  
developing the ,consumer ,price ,index  
for ,all ,urban ,consumers4  7,e7       
,statistical area ,for purposes of this 
subsection the term statistical area    
means-- 7i7 any metropolitan statistical
 area as defined by the ,secretary of   
,commerce1 and  7ii7 the portion of any 
,state not within a metropolitan        
statistical area as so defined4  7#aa7  
,areas outside the united states ,the   
area applicable multiplier for any area 
outside the ,united ,states shall be #a4
  4  7b7 ,effective ,date ,the amendment
 made by this section shall apply to    
taxable years beginning after ,december 
#ca1 #bjai4