[Congressional Record Volume 144, Number 98 (Tuesday, July 21, 1998)]
[House]
[Pages H5960-H5961]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   FOLLOWING THROUGH ON THE COMMITMENT OF THE HOUSE TO ELIMINATE THE 
                          MARRIAGE TAX PENALTY

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 21, 1997, the gentleman from Illinois (Mr. Weller) is 
recognized during morning hour debates for 5 minutes.
  Mr. WELLER. Mr. Speaker, earlier this summer this House made a 
commitment to eliminate the marriage tax penalty. I thought this 
morning that I would talk about why it is so important that we follow 
through on that commitment, and follow through on that commitment with 
a series of simple questions that I hear in the South suburbs and the 
South Side of Chicago, the area that I have the privilege of 
representing.
  That is, do Americans feel that it is fair that our tax code imposes 
a higher tax on married working couples? Do Americans feel it is fair 
that 21 million married working couples pay, on average, $1,400 more in 
higher taxes just because they are married? Do Americans feel that is 
fair that this couple pays higher taxes than an identical couple that 
lives together outside of marriage? Do Americans feel it is fair that 
our tax code actually provides an incentive to get divorced, because 
the only way today to avoid the marriage tax penalty is to get divorced 
and to file that paperwork?
  That is wrong. It is unfair. Frankly, really, it is immoral that our 
tax code punishes society's most basic institution for 21 million 
married working couples; that is, $1,400 in higher taxes.
  Let me give an example of a south suburban couple from Illinois that 
suffers the marriage tax penalty. The gentleman in the couple is a 
machinist at Caterpillar. That is where they make the big heavy earth-
moving equipment in Joliet. This machinist makes $35,500. If he is 
single, under our tax code he files and, of course, with the standard 
exemption and deduction, he is in the 15 percent tax bracket.
  He meets a schoolteacher, a schoolteacher in the public schools. She 
has an identical income of $35,500. If she stayed single, just like her 
machinist fiance, she would be in the 15 percent tax bracket. Under our 
tax code, if they choose to get married, they will file jointly. When 
they file jointly, because they combine their income, and their 
combined income is $61,000, that pushes them into a higher tax bracket. 
They are now taxed in the 28 percent tax bracket just because they are 
married, producing an almost $1,400 marriage tax penalty just because 
they are married.
  That is wrong that this couple, just because they choose to get 
married, pay higher taxes. If we think about it, what is the bottom 
line, here? We propose the Marriage Tax Elimination Act which puts a 
working married couple like our machinist and schoolteacher on parity 
with an identical married couple that lives outside marriage.
  In 1996 this House of Representatives led the way by working to 
provide an adoption tax credit to help families provide a loving home 
for a child in need of adoption. In 1997 this House led the way in 
convincing the President and the Senate that we should provide a $500 
per child tax credit which will benefit 3 million Illinois children. 
That helped families. Of course, this year we can help families again 
by strengthening marriage and no longer punishing marriage.
  Let me share how we propose eliminating the marriage tax penalty. The 
Marriage Tax Elimination Act, H.R. 3734, is very simple. It is 
legislation which essentially doubles relief for working married 
couples by doubling the standard deduction from its current level of 
$4,150 to $8,300, and also doubling the income tax threshold, which of 
course you file in the 15 percent if you are single, and just over 
24,000, doubling that to a little over 49,000.
  So when you are single and you choose to get married, your tax 
essentially doubles. Your rates are double the income. That brings 
fairness to the tax code. That is a very simple way of eliminating the 
marriage tax penalty under the Marriage Tax Elimination Act, doubling 
the standard deduction, doubling rates, so married taxpayers are not 
punished just because they are married. That is a simple solution.

[[Page H5961]]

  This House, of course, made a commitment about 2 months ago to 
address and eliminate the marriage tax penalty. Our friend, the 
President, he has a proposal of his own which he says is a better idea. 
He says we should just expand the child care tax credit for families 
that are lower-income and, of course, happen to have children. So I 
thought I would compare, for this machinist and this schoolteacher in 
Joliet, Illinois, which is really better.
  Under the President's proposal, under the President's proposal for a 
child tax credit, those couples or families that have qualified for the 
President's expanded tax credit, and they already have one, he just 
wants to make it a little bigger, they would see about a $350 net 
increase on take-home pay, money to spend on child care.
  I looked into this and asked some local day care providers in Joliet, 
what does that mean? They said that the average weekly day care cost is 
about $127 in Joliet, so under the President's proposal, for a working 
married couple with a child who goes to day care, they would see just 
less than 3 weeks of day care financed by the President's proposal. If 
we compare this with this machinist and schoolteacher, eliminating the 
marriage tax penalty, $1,400, with the same weekly day care costs for 
this machinist and schoolteacher, if they have a child in day care, it 
is almost 3 months' worth of day care. So which is better, 3 months or 
3 weeks?
  Mr. Speaker I ask Members to make a bipartisan commitment to 
eliminate the marriage tax penalty. This House of Representatives made 
a commitment earlier this summer to address the marriage tax penalty, 
and make elimination the centerpiece of this year's budget.
  Let us follow through on that commitment. Let us help working 
families. Let us eliminate the marriage tax penalty. For 21 million 
couples, $1,400, that is real money for real people. Let us help 
married couples, and eliminate the marriage tax penalty 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 martrimony, 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                                 
----------------------------------------------------------------------------------------------------------------
                                       Machinist        School Teacher          Couple        Weller/McIntosh II
----------------------------------------------------------------------------------------------------------------
Adjusted Gross Income...........  $30,500...........  $30,500...........  $61,000...........  $61,000           
Less Personal Exemption and       6,500.............  6,500.............  11,800............  13,100 (Single2)  
 Standard Deduction.                                                                                            
Taxable Income..................  23,950............  23,950............  49,200............  47,900            
                                  (.15).............  (.15).............  (Partial .28).....  (.15)             
Tax Liability...................  3,592.5...........  3,592,5...........  8,563.............  7,185             
                                  ..................  Marriage Penalty:                       Relief: $1,378    
                                                       $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 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 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 Gentleman, 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!




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