and (2) by striking subparagraphs (B) and (C) and by inserting the following new subparagraphs: (B) 50 percent of the dollar amount applicable under subparagraph (A) in the case of a taxpayer described in paragraph (1)(B) or (1)(C), and (C) $75,000 in the case of a taxpayer described in paragraph (1)(D). . (c) Inflation adjustment Section 55(d)(3) is amended to read as follows: (3) Inflation adjustment Each dollar amount described in clause (i) or (ii) of subparagraph (B) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting— (i) in the case of a dollar amount contained in paragraph (1)(D) or (2)(C) or in subsection (b)(1)(A), calendar year 2011 for calendar year 2016 in subparagraph (A)(ii) thereof, and (ii) in the case of a dollar amount contained in paragraph (1)(A), (1)(B), or (2)(A), calendar year 2017 for calendar year 2016 in subparagraph (A)(ii) thereof. Any increased amount determined under this paragraph shall be rounded to the nearest multiple of $100 ($50 in the case of the dollar amount contained in paragraph (2)(C)). . (d) Repeal of coordination with rules relating to the taxation of unearned children Section 59 is amended by striking subsection (j). (e) Conforming amendment Section 55(d) is amended by striking paragraph (4). (f) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.