[Congressional Record Volume 144, Number 74 (Wednesday, June 10, 1998)]
[House]
[Pages H4475-H4476]
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.)
  Mr. WELLER. Mr. Speaker, last week was a big week because this House 
of Representatives made a commitment to address the marriage tax 
penalty. Let me explain why this is so important.
  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 on the average $1,400 more in 
higher taxes just because they are married?
  $1,400 in the south side of Chicago in the south suburbs is real 
money for real people. $1,400 is one year's tuition at Joliet Junior 
College and 3 months' day care at a local child care center.
  This past week the House of Representatives went on record making a 
commitment to work towards elimination of the marriage tax penalty with 
the passage of the Kasich budget, a budget that spends less and taxes 
less. Let us make elimination of the marriage tax penalty our number 
one priority this year. 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 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%.

[[Page H4476]]



                                                      MARRIAGE PENALTY EXAMPLE IN THE SOUTH SUBURBS                                                     
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                             Machinist                  School teacher                    Couple                  Weller/McIntosh II    
--------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted Gross Income............  $30,500.....................  $30,500.....................  $61,000.....................  $61,000                    
Less Personal Exemption and        6,550.......................  6,550.......................  11,800......................  13,100 (Singles X2)        
 Standard Deduction.                                                                                                                                    
Taxable Income...................  23,950 (x .15)..............  23,950 (x .15)..............  49,200 (Partial x .28)......  47,900 (x .15)             
Tax Liability....................  3,592.5.....................  3,592.5.....................  8,563.......................  7,185                      
--------------------------------------------------------------------------------------------------------------------------------------------------------

       Marriage Penalty: $1,378; Relief: $1,378.
       Weller-McIntosh II Eliminates the Marriage Tax Penalty.

  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 $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. 
Millions of married couples are still stinging from April 15th's tax 
bite and more married couples are 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 year 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 Penalty Elimination Act.
  The Marriage Tax Penalty Elimination Act will increase the tax 
brackets (currently at 15% for the first $24,650 for singles, whereas 
married couples filing jointly pay 15% on the first $41,200 of their 
taxable income) to twice that enjoyed by singles; the Weller-McIntosh 
proposal would extend a married couple's 15% tax bracket to $49,300. 
Thus, married couples would enjoy an additional $8,100 in taxable 
income subject to the low 15% tax rate as opposed to the current 28% 
tax rate and would result in up to $1,053 in tax relief.
  Additionally the bill will increase the standard deduction for 
married couples (currently $6,900) to twice that of singles (currently 
at $4,150). Under the Weller-McIntosh legislation the standard 
deduction for married couples filing jointly would be increased to 
$8,300.
  Our new legislation builds on the momentum of their popular H.R. 2456 
which enjoyed the support of 238 cosponsors and numerous family, women 
and tax advocacy organizations. Current law punishes many married 
couples who file jointly by pushing them into higher tax brackets. It 
taxes the income of the families' second wage earner--often the woman's 
salary--at a much higher rate than if that salary was taxed only as an 
individual. Our bill already has broad bipartisan cosponsorship by 
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 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
------------------------------------------------------------------------

       Do Americans feel that it's right to tax a working couple 
     more just because they live in holy matrimony?
       Is it fair that the American tax code punishes marriage, 
     our society's most basic institution?


               Weller-McIntosh II Marriage Tax Compromise

       Weller-McIntosh II, H.R. 3734, the Marriage Tax Penalty 
     Elimination Act presents a new, innovative marriage penalty 
     elimination package which pulls together all the principle 
     sponsors of various legislative proposals with legislation. 
     Weller-McIntosh II will provide equal and significant relief 
     to both single and dual earning married couples and can be 
     implemented immediately.
       The Marriage Tax Penalty Elimination Act will increase the 
     tax brackets (currently at 15% for the first $24,650 for 
     singles, whereas married couples filing jointly pay 15% on 
     the first $41,200 of their taxable income) to twice that 
     enjoyed by singles; the Weller-McIntosh proposal would extend 
     a married couple's 15% tax bracket to $49,300. Thus, married 
     couples would enjoy an additional $8,100 in taxable income 
     subject to the low 15% tax rate as opposed to the current 28% 
     tax rate and would result in up to $1,215 in tax relief.
       Additionally the bill will increase the standard deduction 
     for married couples (currently $6,900) to twice that of 
     singles (currently at $4,150). Under the Weller-McIntosh 
     legislation the standard deduction for married couples filing 
     jointly would be increased to $8,300.
       Weller and McIntosh's new legislation builds on the 
     momentum of their popular H.R. 2456 which enjoyed the support 
     of 238 cosponsors and numerous family, women and tax advocacy 
     organizations. Current law punishes many married couples who 
     file jointly by pushing them into higher tax brackets. It 
     taxes the income of the families' second wage earner--often 
     the women's salary--at a much higher rate than if that salary 
     was taxed only as an individual.

                                                      MARRIAGE PENALTY EXAMPLE IN THE SOUTH SUBURBS                                                     
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                             Machinist                  School Teacher                    Couple                  Weller/McIntosh II    
--------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted Gross Income............  $30,500.....................  $30,500.....................  $61,000.....................  $61,000                    
Less Personal Exemption and        6,550.......................  6,550.......................  11,800......................  13,100 (Singles x2)        
 Standard Deduction.                                                                                                                                    
Taxable Income...................  23,950 (x .15)..............  23,950 (x .15)..............  49,200 (Partial x .28)......  47,900 (x .15)             
Tax Liability....................  3,592.5.....................  3,592.5.....................  8,563.......................  7,185                      
--------------------------------------------------------------------------------------------------------------------------------------------------------

       Marriage Penalty: $1,378; Relief: $1,378.
       Weller-McIntosh II Eliminates the Marriage Tax Penalty.

       The repeal of the Marriage tax was part of the Republican's 
     1994 `Contract with America,' but the legislation was vetoed 
     by President Clinton.

                          ____________________