[Congressional Record Volume 144, Number 21 (Thursday, March 5, 1998)]
[House]
[Pages H879-H880]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              UNFAIRNESS IN TAX CODE: MARRIAGE TAX PENALTY

  (Mr. WELLER asked and was given permission to address the House for 1 
minute and to revise and extend his remarks and include extraneous 
material.)
  Mr. WELLER. Mr. Speaker, let me explain why enactment of the Marriage 
Tax Elimination Act is so important with a series of questions. Do 
Americans feel that it is fair that our Tax Code imposes a higher tax 
penalty on marriage? Do Americans feel that it is fair that 21 million 
married working couples pay $1,400 more in taxes than identical couples 
with identical incomes living together outside of marriage? Do 
Americans feel that it is right that our Tax Code actually provides an 
incentive to get divorced? Clearly it is unfair and it is wrong. 
Twenty-one million Americans paying $1,400 more just because they are 
married. On the south side of Chicago in the south suburbs, $1,400 is 
one year's tuition at a local community college, 3 months of child care 
at a local day care center, several months' worth of car payments. The 
Marriage Tax Elimination Act now has 238 bipartisan cosponsors. It 
would immediately eliminate the marriage tax penalty. The marriage tax 
penalty is not only unfair, it is wrong. Let us eliminate the marriage 
tax penalty and do it now.
  Mr. Speaker, I rise today to highlight what is arguably the most 
unfair provision in the U.S. Tax code: the marriage tax penalty. I want 
to thank you for your long term interest in bringing parity to the tax 
burden imposed on working married couples compared to a couple living 
together outside of marriage.
  In January, President Clinton gave his State of the Union Address 
outlining many of the things he wants to do with the budget surplus.
  A surplus provided by the bipartisan budget agreement which cut 
waste, put America's fiscal house in order, and held Washington's feet 
to the fire to balance the budget.
  While President Clinton paraded a long list of new spending totaling 
at least $46-48 billion in new programs--we believe that a top priority 
should be returning the budget surplus to America's families as 
additional middle-class tax relief.
  This Congress has given more tax relief to the middle class and 
working poor than any Congress of the last half century.
  I think the issue of the marriage penalty can best be framed by 
asking these question: Do Americans feel its fair that our tax code 
imposes a higher tax penalty on marriage? Do Americans feel its fair 
that the average married working couple pays almost $1,400 more in 
taxes than a couple with almost identical income living together 
outside of marriage? Is it right that our tax code provides an 
incentive to get divorced?
  In fact, today the only form one can file to avoid the marriage tax 
penalty is paperwork for divorce. And that is just wrong!
  Since 1969, our tax laws have punished married couples when both 
spouses work. For no other reason than the decision to be joined in 
holy matrimony, more than 21 million couples a year are penalized. They 
pay more in taxes than they would if they were single. Not only is the 
marriage penalty unfair, it's wrong that our tax code punishes 
society's most basic institution. The marriage tax penalty exacts a 
disproportionate toll on working women and lower income couples with 
children. In many cases it is a working women's issue.
  Let me give you an example of how the marriage tax penalty unfairly 
affects middle class married working couples.
  For example, a machinist, at a Caterpillar manufacturing plant in my 
home district of Joliet, makes $30,500 a year in salary. His wife is a 
tenured elementary school teacher, also bringing home $30,500 a year in 
salary. If they would both file their taxes as singles, as individuals, 
they would pay 15%.

              MARRIAGE PENALTY EXAMPLE IN THE SOUTH SUBURBS             
------------------------------------------------------------------------
                                                  School                
                                   Machinist      teacher       Couple  
------------------------------------------------------------------------
Adjusted gross income..........    $30,500       $30,500         $61,000
Less personal exemption and                                             
 standard deduction............      6,550         6,550          11,800
Taxable income.................     23,950        23,950          49,200
Tax liability..................      3,592.50      3,592.50        8,563
Marriage penalty...............  ............  ............        1,378
------------------------------------------------------------------------

  But if they choose to live their lives in holy matrimony, and now 
file jointly, their combined

[[Page H880]]

income of $61,000 pushes them into a higher tax bracket of 28 percent, 
producing a tax penalty of $1,400 in higher taxes.
  On average, America's married working couples pay $1,400 more a year 
in taxes than individuals with the same incomes. That's serious money. 
Everyday we got closer to April 15th more married couples will be 
realizing that they are suffering the marriage tax penalty.
  Particularly if you think of it in terms of a down payment on a house 
or a car, one years tuition at a local community college, or several 
months worth of quality child care at a local day care center.
  To that end, Congressman David McIntosh and I have authored the 
Marriage Tax Elimination Act.
  It would allow married couples a choice in filing their income taxes, 
either jointly or as individuals--which ever way lets them keep more of 
their own money.
  Our bill already has the bipartisan cosponsorship of 232 Members of 
the House and a similar bill in the Senate also enjoys widespread 
support.
  It isn't enough for President Clinton to suggest tax breaks for child 
care. The President's child care proposal would help a working couple 
afford, on average, three weeks of day care. Elimination of the 
marriage tax penalty would give the same couple the choice of paying 
for three months of child care--or addressing other family priorities. 
After all, parents know better than Washington what their family needs.
  We fondly remember the 1996 State of the Union address when the 
President declared emphatically that, quote ``the era of big government 
is over.''
  We must stick to our guns, and stay the course.
  There never was an American appetite for big government. But there 
certainly is for reforming the existing way government does business. 
And what better way better way to show the American people that our 
government will continue along the path to reform and prosperity than 
by eliminating the marriage tax penalty.
  Ladies and Gentleman, we are on the verge of running a surplus. It's 
basic math. It means Americans are already paying more than is needed 
for government to do the job we expect of it. What better way to give 
back than to begin with mom and dad and the American family--the 
backbone of our society.
  We ask that President Clinton join with Congress and make elimination 
of the marriage tax penalty . . . a bipartisan priority. Of all the 
challenges married couples face in providing home and hearth to 
America's children, the U.S. tax code should not be one of them.
  Lets eliminate The Marriage Tax Penalty and do it now!

                            Which is better?

       The President's Proposal to expand the child care tax 
     credit will pay for only 2 to 3 weeks of child care. The 
     Weller-McIntosh Marriage Tax Elimination Act HR 2456, will 
     allow married couples to pay for 3 months of child care.
       Which Is Better, 3 Weeks Or 3 Months?

        CHILD CARE OPTIONS UNDER THE MARRIAGE TAX ELIMINATION ACT       
------------------------------------------------------------------------
                                                 Average                
                                  Average tax   weekly day    Weeks day 
                                     relief     care cost       care    
------------------------------------------------------------------------
Marriage Tax Elimination Act....       $1,400         $127          11  
President's child care tax                                              
 credit.........................          358          127           2.8
------------------------------------------------------------------------

                                                            

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