[Congressional Record Volume 144, Number 46 (Thursday, April 23, 1998)]
[House]
[Page H2298]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page H2298]]
              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, a series of very simple questions state why 
passage of the Marriage Tax Elimination Act is so important. Do 
Americans feel it is fair that our Tax Code punishes marriage with a 
higher tax? Do Americans feel that it is fair that 21 million married 
working couples with two incomes pay on the average $1,400 more in 
taxes just because they are married? Do Americans feel that it is right 
that our Tax Code actually provides an incentive to get divorced?
  Of course not. Americans recognize the marriage tax penalty is wrong; 
it is unfair; it is immoral. They also recognize that 21 million 
married working couples are paying $1,400 more. In the south side of 
Chicago, in the south suburbs, $1,400 dollars is real money for real 
people, one year's tuition at Joliet Junior College or 3 months of day 
care at a local day care center.
  The Marriage Tax Elimination Act has 238 cosponsors, a majority of 
the House. Let us eliminate the marriage tax penalty. Let us eliminate 
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 questions: Do Americans feel it's fair that our tax code 
imposes a higher tax penalty on marriage? Do Americans feel it's 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 case sit 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..........................     3592.5     3592.5       8563
Marriage penalty: $1378.                                                
------------------------------------------------------------------------

  But if they chose to live their lives in holy matrimony, and now file 
jointly, their combined income of $61,000 pushes them into a higher tax 
bracket of 28 percent, producing a tax penalty of $1400 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. 
Every day we get 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 car; one year's 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--whichever 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 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 gentlemen, 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.
  Let's eliminate the marriage tax penalty and do it now!

                            Which Is Better?

       Note: 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, H.R. 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     weekly   Weeks day
                                            tax      day care     care  
                                           relief      cost             
------------------------------------------------------------------------
Marriage Tax Elimination Act...........     $1,400       $127         11
President's child care tax credit......        358        127        2.8
------------------------------------------------------------------------

                                                               

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