[Congressional Record Volume 145, Number 52 (Thursday, April 15, 1999)]
[Senate]
[Pages S3779-S3780]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ASHCROFT (for himself, Mrs. Hutchison, Mr. Inhofe, and Mr. 
        Kyl):
  S. 806. A bill to amend the Internal Revenue Code of 1986 to reduce 
the 15 percent individual income tax rate to 10 percent over 5 years, 
to provide that married couples may file a combined return under which 
each spouse is taxed using the rates applicable to unmarried 
individuals, and for other purposes; to the Committee on Finance.
  Mr. ASHCROFT. Mr. President, on this April 15, I would like to raise 
the issue of tax freedom and fairness. The American people are paying 
over one-fifth of Gross Domestic Product in taxes--the highest share of 
taxation since World War II and the highest peacetime levels in 
history. Too much of this burden falls on middle-income earners, who 
are struggling to juggle the high tax burden with the more important 
demands of their own families.
  It is for these hard-working Americans that I am introducing the 
Taxpayer Freedom and Fairness Act--legislation that is designed to 
reduce the

[[Page S3780]]

tax burdens on lower and middle-income taxpayers. This goal can be 
accomplished in two ways, through marginal rate reductions for low and 
middle income earners, or by making the payroll tax deductible for 
individuals. Those individuals and families on the lower half of our 
income ladder need and deserve tax relief and I am committed to 
providing them that relief.
  Tax relief is necessary because many middle-income earners are paying 
levels of taxes that severely diminish their ability to care for and 
support their families. Under current law, single taxpayers will pay 
15% on the first $25,750 of taxable income they earn. Combining this 
with the 15% payroll tax, those earning under $26,000 are paying 30% of 
taxable income to the federal government. Those earning a taxable 
income of $26,000 are by no means rich--and should not be taxed as if 
they were.
  Given the burden on workers, it is incumbent upon us to provide them 
with tax relief. The Taxpayer Freedom and Fairness Act provides two 
ways to deal with these unconscionably high tax levels. The first is to 
provide these lower and middle income earners with real rate relief. I 
have proposed reducing the 15% tax rate to 10%. According to Congress' 
Joint Committee on Taxation, reducing the 15% income tax rate to 10% 
over five years would provide taxpayers with $980 billion in tax relief 
over the next decade. That means the average two-income family of four 
would save $2,200 annually. An individual with a taxable income of 
$25,000 would save $1,250 annually once the rate reduction was fully in 
place.
  This is a tax cut designed primarily to benefit hard-working low- and 
middle-income Americans. Reducing the rate from 15% to 10% would save 
the average Missouri households $1,170. This kind of tax relief is 
especially welcome in Missouri, where, according to the Tax Foundation, 
the burden of state and local taxes has grown dramatically in recent 
years. In recent years, the tax burden in Missouri has risen from the 
low rank of 47th in the nation to the 16th highest.
  Across the country, nearly two-thirds of the relief would flow to 
households earning less than $75,000. Less than 4% of the tax relief 
would flow to households earning more than $200,000. This is real tax 
relief directed at middle class earners.
  A second way to accomplish this important goal is through marriage 
penalty relief. It should be our goal as a society to encourage young 
couples to get married. Marriage is a sacred institution that promotes 
family and community stability. More marriage is an unmitigated good 
for this country.
  Unfortunately our tax system does not see it as such. The current 
federal income tax system forces many married couples to pay a 
``marriage penalty.'' That is, they are required to pay more federal 
income tax than they would have paid had they been single and filed 
their taxes separately.
  This is fundamentally unfair. The tax code should not punish 
marriage, our society's most basic and essential institution.
  Under current law, two single taxpayers, each earning $35,000 and 
claiming standard deductions, will each pay $4,558.50 in federal income 
tax.
  If those taxpayers marry each other, the tax code would boost their 
combined tax bill by $1,478 to $10,595. This almost $1,500 penalty is a 
serious disincentive to middle-income couples looking to get married. 
This disincentive represents an unacceptable attack on the institution 
of marriage. This issue resonates particularly strongly in Missouri. 
1,052,518 out of 2,416,434 Missouri tax filers file joint returns.
  The marriage penalty has been part of the tax code since 1969. Since 
then, the burden of the penalty has grown enormously. In fact, the 
Joint Economic Committee estimates married couples now pay $29 billion 
in taxes every year that they otherwise would not have paid had they 
been single. It is time to abolish the marriage penalty and create a 
new day of freedom for American families to keep more of the money they 
work so hard to earn.
  I have long advocated elimination of the marriage penalty. In 
addition to the Taxpayer Freedom and Fairness Act, I am also a co-
sponsor of Senator Hutchison's bill to eliminate the marriage penalty. 
I also included the elimination of the marriage penalty as a provision 
in my Fair Flat tax proposal. Eliminating the marriage penalty should 
be one of the Senate's top tax priority for 1999.
  It is time to provide real tax relief to those who need it most. The 
middle class should no longer have to pay 43% of incomes to the federal 
government. Married couples should no longer pay a penalty just for 
being married. The best ways to solve these problems are to reduce 
marginal tax rates and to eliminate this penalty on married couples. I 
urge my colleagues to vote for the Taxpayer Freedom and Fairness bill, 
and bring freedom and fairness to taxpayers this April 15th.
                                 ______