[Congressional Record Volume 146, Number 25 (Wednesday, March 8, 2000)]
[Senate]
[Pages S1270-S1271]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ELIMINATION OF THE MARRIAGE TAX PENALTY
Mr. BROWNBACK. Mr. President, I rise today to address an issue I have
raised several times on the floor. I am hopeful that this year, this
body, will get a chance to deal with the marriage penalty tax
elimination.
Mr. President, Senators Kay Bailey Hutchison, John Ashcroft, and I
have been pushing for some period of time for the elimination of the
marriage penalty tax; and it is truly that--a penalty tax on marriage.
This body will have a chance to address this issue shortly. The Finance
Committee of the Senate will consider this issue in the near future.
They will be marking up the bill to eliminate one area of the Internal
Revenue Code where the marriage penalty tax occurs. It will then come
before this body, I am told, I believe the leader wants it scheduled
before April 15.
There will be Members who will try to block this bill, with issues
that are extraneous to the marriage penalty. They will be able to add
things to it, or filibuster the marriage penalty tax elimination. I
hope they think about what they would be doing in stopping the
elimination of the marriage penalty tax. Before they take actions to
block this important issue, I hope they just pause and say maybe I will
try to amend my issue onto another bill; this one is too important. I
don't think we need to be blocking it.
Just in looking at the marriage penalty tax, I hope people recognize
the extent of its involvement and intrusion on married couples across
the country. I have a chart up here to which I will refer a number of
times. It shows the number of married couples affected by the marriage
penalty tax across the United States. This is it. The chart represents
married couples, and we don't know how many children are in these
families who are also effected. We are talking about 25 million
American families who are affected across the country by this penalty.
In Kansas, we have 259,904 couples who are penalized by this marriage
penalty tax.
Again, for those who haven't been following the debate, all our
proposal would do is level the playing field. It would say that if you
are married, a two-wage-earner family, you will pay the same in taxes
as if you were two independent people living together; we are not going
to punish you, or fine you, or penalize you for being married.
The average tax these 25 million American couples pay additionally
for the privilege of being married is $1,480. That is a lot of money.
That is a lot of money to a lot of people. I hope we cut the tax and
send that back to the married couples across this country and say we
are not going to penalize you anymore. That is what we are seeking for
this body to pass.
The House of Representatives has already done good work in this area.
The House of Representatives has passed a bill to provide marriage tax
penalty relief for America's families in the 15-percent marginal tax
bracket and to eliminate the marriage penalty in the standard
deduction.
I think the House bill is a good starting point for our discussion of
the marriage penalty reduction and elimination. Doubling the standard
deduction, increasing the width of the 15-percent bracket, and fixing
the earned-income tax credit where the marriage penalty exists will
eliminate or reduce the marriage penalty for all families. It still
doesn't get rid of it. The Marriage Penalty appears in over 60
different places in the Tax Code.
Down the road I hope we can get to a discussion of sunsetting the
entire Tax Code and going to a flatter, fairer, and simpler system. I
know the Presiding Officer has led the charge on doing precisely that.
It is clearly something we need to do for the country, for the economy,
and for the people, so many of whom, labor under this Tax Code in fear
they are going to be found to have done something wrong when they are
trying to be good, law-abiding citizens. But that is a debate for
another day.
Right now we are trying to get at one issue. The National Center for
Policy Analysis says the highest proportion of marriage penalties
occurred when the higher-earning spouse made between $20,000 and
$75,000. Clearly, we need to make marriage penalty elimination a
priority for all families, not only a few.
Consider that--making between $20,000 and $75,000. You are looking at
a two-wage-earner family, probably with a child, or two or three
children, who can't afford to be penalized by this $1,480. They are
currently being penalized under the Tax Code.
We see the numbers up here. We know the full extent of this.
I want to read--because I think these are so touching and important--
statements of people who are impacted by this. We continue to collect
these statements and letters from people because now people are
calculating their marriage penalty tax. I hope in the next week or so
to have a chart saying: OK. As you are watching this on TV, figure your
marriage penalty. Have this as one spouse's income; there is another
spouse's income; and here is where it meets. That is your marriage
penalty, the tax you pay. The average is $1,480. Some pay more, some
less; letting people know this is what they are penalized and this is
the tax they are paying.
Listen to some of the stories from people around the country. This is
Christopher from Fairfield, OH. This family said:
One of the biggest shocks my wife and I had when deciding
to get married was how much more we would have to give to the
government because we decided to be married rather than live
together. It does not make sense that I was allowed to keep a
larger portion of my pay on a Friday and less of it on a
Monday with the only difference being that I was married that
weekend.
That is to the point.
This is from Andrew and Connie from Alexandria, VA.
We grew up together and began dating when we were 18. After
dating for three years we decided that the next natural step
in our lives together would be to get married. I cannot tell
you the joy this has brought us. I must tell you that the tax
penalty that was inflicted on us has been the only real
source of pain that our marriage has suffered.
I wish all marriages could be like that--that the only source of pain
is the Tax Code. Is that a pain we should inflict on them? Is that
something we should do to this married couple? They say: We are getting
along pretty good. The only real pain is the Federal Tax Code and the
tax penalty we are paying.
I don't think that is a good signal to send.
This is Andrew from Greenville, NC, who writes:
It is unfortunate that the government makes a policy
against the noble and sacred institution of marriage. I also
feel it is unfortunate that it seems to hit young struggling
couples the hardest.
That is probably the biggest point. If you have a combined income
with the top wage earner making between $20,000 and $75,000--these are
young married couples; they are struggling with a lot of issues,
struggling with financial issues--and you lob on top of that a tax
penalty, that really hits them, and particularly a lot of couples
during the early years with young children.
This is Thomas from Hilliard, OH, who says:
No person who legitimately supports family values could be
against this bill. The marriage penalty is but another
example of how in the past 40 years the federal government
has enacted policies that have broken down the fundamental
institutions that were the strength of this country from the
start.
[[Page S1271]]
This is Sean from Jefferson City, MO:
I think the marriage penalty is a major cause of the
breakdown of the family here in the U.S. . . . [Ending it]
would do a lot to cut down on the incidence of cohabitation
by unmarried couples and give more children two-parent
families where there is a real commitment between the
parents.
I don't know if I would go as far as what he said--that this has been
the major cause of the breakdown of the family in the United States. I
don't think that is the case. But it is the wrong signal for us to
send. We send signals all the time across the country of what we think
is good and what we think is wrong.
Welfare reform: When we went through that fight--it was a very
important fight--we decreased the welfare rolls in the country by 50
percent. We sent a signal that we think it is good to work. That is a
good signal.
We should eliminate the marriage penalty tax. That is a statement
about what we think is good. People are married and they shouldn't be
taxed and penalized for that.
According to a recent Rutgers University study, the institution of
marriage is already having problems in the United States and is in a
state of decline. From 1960 to 1996, the annual number of marriages per
thousand adult women declined by almost 43 percent. That impacts and
hurts a lot of children. Not that single parents don't struggle
heroically to raise children; they do many times very successfully. But
that family can have a bonded relationship. Studies are showing again
and again that the most important place we can put that child is in a
loving relationship between two married people.
I am going to continue to come down to the floor regularly raising
this issue because this body will have a chance to vote on this issue
in dealing with the marriage penalty tax. I believe there are Members
on both sides of the aisle of goodwill who want to see this marriage
penalty tax eliminated. I don't think the penalty makes much sense to
many Americans at all.
I hope as we start to engage this debate, in this body, that Members
on both sides of the aisle will stand up and say: Yes, this is an
important issue. We are not going to load it down with a lot of
amendments. We are not going to load it down with a lot of extraneous
issues. It passed the House. If it passes this body, we can get it to
the President for his signature. It is an important signal to send
across the country, and we are not going to block it.
There are a lot of ways in this body that you can block something--
that you can put it forward and say you are for it but you are blocking
it. I hope this would be one that we could say we are going to pass for
the 25 million American married couples.
For those in South Dakota, 75,114 are penalized, and for those in
Nevada 146,142 are penalized--I see my colleagues from South Dakota and
Nevada--I hope they can say to them: We shouldn't be penalizing you.
We have the wherewithal to change this, and let's change it.
Thank you very much, Mr. President. I hope we will have a vote on a
true marriage penalty tax bill before April 15 comes and goes. There
will be other of my colleagues on the floor later on to address this
issue as well.
I yield the floor.
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