[Congressional Record Volume 144, Number 71 (Thursday, June 4, 1998)]
[Extensions of Remarks]
[Pages E1026-E1027]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




INTRODUCTION OF LEGISLATION TO REDUCE MARRIAGE PENALTY OF EARNED INCOME 
                               TAX CREDIT

                                 ______
                                 

                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                         Thursday, June 4, 1998

  Mr. NEAL of Massachusetts. Mr. Speaker, along with Representatives 
McDermott and Kennelly, I am introducing legislation which addresses 
the marriage penalty of the earned income tax credit (EITC). Recently, 
there has been a lot of talk about reducing the marriage penalty. 
Several bills have been introduced to reduce the penalty. In addition, 
the House Budget Resolution includes a provision to reduce the marriage 
penalty.
  The focus of reducing the marriage penalty has been geared toward 
middle income and upper income families. Senator Phil Gramm was the 
first Member of Congress to bring attention to the marriage penalty of 
the EITC. Senator Gramm is attempting to amend the tobacco legislation. 
His amendment addresses the marriage penalty for families with lower 
incomes and the marriage penalty of the EITC.
  Today, we are introducing legislation which addresses part of the 
marriage penalty in the current Tax Code by increasing the phase-out of 
the EITC for joint filers with qualifying children. This legislation 
increases the phase-out by $3,500. In 1999, the current law phase-out 
is $12,520 and this bill increases it to $16,020. The substantive 
effect of this bill is the same

[[Page E1027]]

as the EITC provision in Senator Gramm's amendment.
  This legislation complements legislation introduced by Reps. 
McDermott and Kleczka. Their bill increases the standard deduction for 
those filing joint returns. The bill I am introducing today and the 
McDermott/Kleczka bill provide a realistic solution to the marriage 
penalty that addresses the issues at all income levels.
  I urge you to join me in reducing the marriage penalty associated 
with the EITC. This legislation will help working families who are 
trying to stay off welfare.

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