[Congressional Record Volume 147, Number 134 (Tuesday, October 9, 2001)]
[Senate]
[Pages S10390-S10391]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. HUTCHISON (for herself, Mr. Brownback, Mr. Miller, Mr. 
        Smith of New Hampshire, Mr. Hutchinson, Mr. Fitzgerald, and Mr. 
        Allen):
  S. 1513. A bill to amend the Internal Revenue Code of 1986 to make 
marriage penalty relief effective immediately in the 15-percent bracket 
and the standard deduction; to the Committee on Finance.
  Mrs. HUTCHISON. Madam President, I rise today to introduce 
legislation that will build upon the historic Economic Growth and Tax 
Relief Reconciliation Act of 2001 by accelerating the marriage penalty 
tax relief in that bill and make it effective beginning next year. I am 
joined in my effort by Senators Brownback, Miller, Smith of New 
Hampshire, Hutchinson, Fitzgerald, and Allen.
  Earlier this year we delivered to the American people long overdue 
tax relief. Unfortunately, we did not have the ability to give married 
couples the relief from the marriage penalty as soon as we would have 
liked. My bill will complete this unfinished business by treating 
married couples fairly in the tax code beginning next year. 
Particularly now, as the President and Congress consider additional tax 
relief to bolster the economy in these difficult times, this 
legislation would be a smart option. At times like this, what better 
way to help our Nation than by strengthening the building blocks of 
society, our families, by adding to their budgets through marriage 
penalty relief.
  Every year for the past four years I introduced a bill to eliminate 
the marriage penalty tax as I simply could not understand why two 
single people should be thrown into a higher tax bracket and pay more 
in taxes simply because they got married. Not because of a promotion, 
not because of a raise, but because they got married! This year, we 
finally told all Americans that they do not have to choose between love 
and money, that they should not be penalized for exchanging wedding 
vows. I am proud to say that in this year's tax relief plan we 
corrected this quirk in the tax code. We returned to the commonsense 
principles that made this country great, and away from the concept that 
``no good deed goes unpunished.''
  The marriage penalty relief that was passed earlier this year will 
offer critical relief to our married couples, but unfortunately it will 
not take place immediately. I want to improve this timing because when 
the situation is as ridiculous as the marriage penalty, that is wrong. 
There are more than 20 million married couples in America today that 
pay a penalty just because they got married, a penalty that averages 
around $1,400. That is a lot of money! Especially when you are just 
starting out, $1,400 to a young couple could be part of the down 
payment on the new house or the new car for the expenses associated 
with having children. However, they choose to spend that money, or for 
whatever expenses they need it for, we want them to be able to make 
their own choices with the money they earn.
  And we want them to have the ability to do so now, not several years 
from now. What the bill does that I am introducing today is that it 
takes the relief we finally offered in the tax plan and makes it 
effective immediately for the 15 percent bracket and the standard 
deduction.
  Today, if you take the standard deduction when you do your taxes as 
an individual, you do not get the same amount of deduction if you get 
married. That is, the standard deduction does not simply double for 
couples. Whereas today the standard deduction for a single person is 
$4,550, and for a married couple is $7,600, our tax relief bill 
insisted that married couples receive a standard deduction that is 
exactly double that of the single person, or $9,100. Under my bill 
today, this doubling of the standard deduction will occur immediately.
  In addition, we addressed the fact that when most couples marry, the 
second income bumps them up to a higher tax bracket. Therefore, we 
decided to widen every tax bracket so that a married couple will not 
have to pay more in income taxes simply because they go into a higher 
bracket when they combined incomes.
  In this way, a combined income will be taxed at the same rate as if 
it was a single person making two incomes. For example, if each 
individual in a relationship is in the 15-percent income tax bracket 
but they get married and their combined incomes now bump them into the 
30-percent bracket, our tax relief means that they will effectively 
remain in the 15 percent bracket.
  This is critically important, especially to those who are at the 
lower income rates and for whom jumping from the 15 percent bracket to 
the next one could make all the difference in their budget. Our earlier 
legislation widens

[[Page S10391]]

the 15-percent bracket by $9,000 for married couples. My bill today 
will accelerate this relief by making this change now, thereby 
eliminating the marriage penalty for those couples who are in the 15 
percent bracket.
  Earlier this year a bipartisan majority agreed that it is very 
important that we relieve the pressure on the more than 20 million 
American couples who pay the marriage penalty tax. We all agreed then 
that this is wrong, and must be changed. Today, we have the chance to 
put our money where our mouth is and offer help to struggling couples 
now. I call upon my colleagues to join in this effort to provide this 
immediate assistance to the working families of America.
                                 ______