[Congressional Record Volume 144, Number 50 (Wednesday, April 29, 1998)]
[House]
[Pages H2594-H2595]
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, some ask why is it so important we pass the 
Marriage Tax Elimination Act. Clearly I think three questions best 
answer that big question.
  Do Americans feel that it is fair that a working married couple pays 
higher taxes just because they are married?
  Do Americans feel that it is fair that 21 million married working 
couples pay on average $1,400 more in taxes than an identical couple 
living together outside of marriage?
  Do Americans feel that it is right that our Tax Code actually 
provides an incentive to get divorced?
  Of course not. Americans recognize that the marriage tax is wrong and 
it is time to do something about it. If you think about it, 21 million 
Americans paying $1,400 more just because they are married, that is 
real money for real people. The south side of Chicago, the south 
suburbs that I have the privilege of representing, $1,400 is one year's 
tuition at a local community college, three months of day care at a 
local child care center, several months worth of car payments.
  The Marriage Tax Elimination Act is gaining momentum. Let us 
eliminate the marriage tax. Let us eliminate it now.
  Mr. WELLER. 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 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

[[Page H2595]]

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
         Adjusted gross income           Machinist   Teacher     Couple
                                          $30,500    $30,500    $61,000
------------------------------------------------------------------------
Less personal exemption and standard        $6,550     $6,550    $11,800
 deduction.............................
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. 
Everyday 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 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 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, 3 Weeks or 3 Months?

       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.

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

                                                                                                  

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