[Congressional Record Volume 143, Number 1 (Tuesday, January 7, 1997)]
[Extensions of Remarks]
[Page E17]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]






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                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                        Tuesday, January 7, 1997

  Mr. NEAL of Massachusetts. Mr. Speaker, today I introduced 
legislation to correct an inequity in on our current tax system. Under 
current law, an individual over the age of 55 is allowed a one-time 
exclusion of capital gain on the sale of a principal residence. This 
one-time exclusion invokes a marriage penalty. This legislation would 
eliminate the marriage penalty for the one-time exclusion of gain on 
the sale of a principal residence.
  For example, two individuals over the age of 55 who decide to marry 
and sell their homes would only receive an exclusion for $125,000. 
Whereas, if they did not marry and sold their homes they each would be 
able to receive an exclusion for $125,000. This legislation addresses 
this problem. The legislation eliminates the marriage penalty by 
disregarding elections made before the date of marriage or elections 
made on homes sold after the date of marriage, but purchased before the 
marriage.
  Fairness is an important element of tax policy. The current policy on 
the one-time exclusion assists individuals who are approaching 
retirement and it is a valuable exclusion. Our Tax Code should be fair 
and not discriminate against basic values such as marriage. The 
decision to marry should not be based on financial reasons.
  I urge you to correct this inequity and support this legislation.

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