[Congressional Record Volume 144, Number 34 (Tuesday, March 24, 1998)]
[House]
[Pages H1381-H1382]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              UNFAIRNESS IN TAX CODE: MARRIAGE TAX PENALTY

  Mr. WELLER. Mr. Speaker, there is an important question out there and 
that question is: Why is enactment of the Marriage Tax Elimination Act 
so important for American families? And I think it is best to ask a 
series of questions. Do Americans feel that it is fair that our Tax 
Code imposes a higher tax on marriage? Do Americans feel that it is 
fair that 21 million married working couples, 42 million Americans, pay 
on average $1,400 more in taxes just because they are married, $1,400 
more than an identical couple who chooses to live together outside of 
marriage, even though they have identical incomes? Do Americans feel 
that it is right that our Tax Code actually provides an incentive to 
get divorced?
  Well, the answer is pretty clear: Of course not. Not only is the 
marriage tax unfair, it is wrong. It is immoral that our Tax Code 
actually punishes our society's most basic institution, the institution 
of marriage.
  Mr. Speaker, the Congressional Budget Office last year reported that 
21 million married working couples paid on average $1,400 more in 
taxes.
  Let me share an example. I will take a couple from Joliet, Illinois, 
a community in the district that I have the privilege of representing. 
This one gentleman is a machinist at the local Caterpillar 
manufacturing plant. He makes $30,500 a year in income, and after 
taking out the standard exemption that he is able to claim as a single 
person, he is in the 15 percent tax bracket, which means he is taxed at 
the 15 percent tax rate. Say he meets a gal and she is a school teacher 
in the Joliet public schools and she has an identical income of 
$30,500. If they choose to get married, their combined income of 
$61,000 pushes them into the 28 percent tax bracket, producing the 
average marriage tax penalty of $1,400.
  In Joliet, Illinois, $1,400 is a lot of money. Here in Washington, 
D.C., it is a drop in the bucket. But for this couple, this machinist 
and public school teacher in Joliet, $1,400 is one year's tuition at 
Joliet Junior College. It is 3 months of day care at a local day care 
center and several months of car payments and even a significant 
portion of a down payment on a home.
  I mentioned child care and the President talks about increasing the 
child care tax deduction. So a lot of questions are which is better, 
eliminating the marriage tax penalty or increasing that child care tax 
deduction.
  I noted earlier that $1,400 is 3 months' worth of day care at a local 
day care center in Joliet, Illinois. One of the President's ideas, 
expansion of the child care tax credit, the average family that will 
qualify with a combined income of less than $50,000, they would see 
$358 more in net take-home pay. Under the Marriage Tax Elimination Act, 
they would see $1,400 more in net take-home pay. And in Joliet, 
Illinois, $358 will pay for 3 weeks of day care. Elimination of the 
marriage penalty for that machinist and that school teacher will pay 
for 3 months.
  So which is better, 3 weeks or 3 months of day care? Clearly, 
elimination of the marriage tax would be a bigger help to this working 
family in Joliet, Illinois.
  Under the Marriage Tax Elimination Act, we give this machinist and 
this school teacher the power of choice where rather than filing 
jointly, which penalizes them with a $1,400 marriage tax penalty, they 
can choose to file as two singles. It would be to their financial 
advantage and they would save that $1,400 by enjoying the lower tax 
rate.
  What is the bottom line? The bottom line is the Marriage Tax 
Elimination Act would put a married couple with two incomes on equal 
footing with the working couple with identical income living together 
outside of marriage. That is an issue of fairness, and I believe that 
we should stop punishing marriage.
  In 1996, this Republican Congress helped families by providing for an

[[Page H1382]]

adoption tax credit so that families could better afford to provide a 
loving home for a child in need of adoption. In 1997, this Republican 
Congress provided for a $500-per-child tax credit which would benefit 3 
million children in Illinois. $1.5 billion in higher take-home pay will 
stay in Illinois to meet the needs of local Illinois families rather 
than coming here to Washington. We believe that those Illinois families 
can better spend their hard-earned dollars better at home than we can 
here in Washington.
  Mr. Speaker, this year let us help the American family again by 
eliminating the marriage tax penalty. Let us allow those 21 million 
married couples who are currently paying on average $1,400 more, just 
because they are married, under our Tax Code to keep that money to meet 
their own needs. Let us eliminate the marriage tax penalty and let us 
pass the Marriage Tax Elimination Act and let us do it now.

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