[Congressional Record Volume 149, Number 3 (Thursday, January 9, 2003)]
[Senate]
[Pages S154-S155]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. HUTCHISON (for herself, Mr. Bayh, Mr. Brownback, Mr. 
        Hagel, Mr. Burns, Mr. Fitzgerald, Mr. Cornyn, and Mr. Cochran):
  S. 120. A bill to eliminate the marriage tax penalty permanently in 
2003; to the Committee on Finance.
  Mrs. HUTCHISON. Mr. President, I am pleased to introduce a bill to 
provide permanent tax relief from one of the most egregious, anti-
family aspects of the tax code, the marriage penalty. Relieving 
American taxpayers of this burden has been one of my highest priorities 
as a U.S. Senator.
  Today, millions of couples across America are penalized by our tax 
code simply because they are married. The Treasury Department estimates 
that 48 percent of married couples pay this additional tax, and, 
according to a study by the Congressional Budget Office, the average 
penalty paid is $1,400 per couple.
  Fortunately, the 107th Congress took a step in the right direction. 
The Economic Growth and Tax Relief Reconciliation Act of 2001 will 
provide marriage penalty relief to millions of couples by increasing 
the size of the standard deduction and the width of the 15 percent tax 
bracket, so those applied to a married couple will be twice the size of 
those for an individual. In addition, the phase-out levels for the 
earned income tax credit will be adjusted so as to reduce the penalty 
on married couples.
  But once again, we face the infamous ``sunset provision'' that will 
wipe away these reforms in 2011. Another problem is that relief does 
not begin to be phased in until 2005, with the full impact not taking 
effect until 2009. President Bush has called for making marriage 
penalty relief effective immediately as part of his economic stimulus 
package.
  I agree that this is an important step. Given the state of the 
economy and the difficulty many families are having in making ends 
meet, we cannot wait any longer to give young couples the break they 
deserve.
  The bi-partisan bill I am offering with Senator Bayh and others would 
make the 2001 reforms effective immediately and permanently. People 
will no longer have to decide between love and money.
  The benefits for couples are significant. A couple earning $30,000 
could keep $800 they now pay in taxes, while a couple earning $80,000 
could save more than $1,300. 35 million couples will benefit from 
enacting marriage penalty relief in 2003, including 2.4 million Texas 
families.
  The tax code provides a significant disincentive for people to take 
marriage vows. Marriage is a fundamental institution in our society and 
should not be discouraged by the IRS. The benefits of marriage are well 
established. Children living in a married household are far less likely 
to live in poverty or to suffer from child abuse. Research indicates 
they are less likely to be depressed or have developmental problems. 
Scourges such as adolescent drug use are less common in married 
families, and married mothers are less likely to be victims of domestic 
violence.
  At the very least, marriage should not be a taxable event.
  I call on the Senate to finish the job we started and say ``I do'' to 
providing permanent marriage penalty relief today.
  Mrs. HUTCHISON. Mr. President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 120

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Marriage Penalty Relief Act 
     of 2003''.

     SEC. 2. ACCELERATION OF MARRIAGE PENALTY RELIEF PROVISIONS.

       (a) Elimination of Marriage Penalty in Standard 
     Deduction.--
       (1) In general.--Paragraph (2) of section 63(c) of the 
     Internal Revenue Code of 1986 (relating to standard 
     deduction) is amended--
       (A) by striking ``$5,000'' in subparagraph (A) and 
     inserting ``200 percent of the dollar amount in effect under 
     subparagraph (C) for the taxable year'';
       (B) by adding ``or'' at the end of subparagraph (B);
       (C) by striking ``in the case of'' and all that follows in 
     subparagraph (C) and inserting ``in any other case.''; and
       (D) by striking subparagraph (D).
       (2) Technical amendments.--
       (A) Subparagraph (B) of section 1(f )(6) of such Code is 
     amended by striking ``(other than with'' and all that follows 
     through ``shall be applied'' and inserting ``(other than with 
     respect to sections 63(c)(4) and 151(d)(4)(A)) shall be 
     applied''.
       (B) Paragraph (4) of section 63(c) of such Code is amended 
     by adding at the end the following flush sentence:

     ``The preceding sentence shall not apply to the amount 
     referred to in paragraph (2)(A).''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2002.
       (b) Elimination of Marriage Penalty in 15-percent 
     bracket.--
       (1) In general.--Section 1(f ) of the Internal Revenue Code 
     of 1986 (relating to adjustments in tax tables so that 
     inflation will not result in tax increases) is amended by 
     adding at the end the following new paragraph:
       ``(8) Elimination of marriage penalty in 15-percent 
     bracket.--
       ``(A) In general.--With respect to taxable years beginning 
     after December 31, 2002, in prescribing the tables under 
     paragraph (1)--
       ``(i) the maximum taxable income in the 15-percent rate 
     bracket in the table contained in subsection (a) (and the 
     minimum taxable income in the next higher taxable income 
     bracket in such table) shall be 200 percent of the maximum 
     taxable income in the 15-percent rate bracket in the table 
     contained in subsection (c) (after any other adjustment under 
     this subsection), and
       ``(ii) the comparable taxable income amounts in the table 
     contained in subsection (d) shall be \1/2\ of the amounts 
     determined under clause (i).
       ``(B) Rounding.--If any amount determined under 
     subparagraph (A)(i) is not a multiple of $50, such amount 
     shall be rounded to the next lowest multiple of $50.''.
       (2) Technical amendments.--
       (A) Subparagraph (A) of section 1(f )(2) of such Code is 
     amended by inserting ``except as provided in paragraph (8),'' 
     before ``by increasing''.
       (B) The heading for subsection (f ) of section 1 is amended 
     by inserting ``Elimination of Marriage Penalty in 15-Percent 
     Bracket;'' before ``Adjustments''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2002.

[[Page S155]]

       (c) Marriage Penalty Relief for Earned Income Credit.--
       (1) Increased phaseout amount.--
       (A) In general.--Section 32(b)(2)(B) of the Internal 
     Revenue Code of 1986 (relating to amounts) is amended by 
     striking ```increased by--'' and all that follows and 
     inserting ``increased by $3,000.''.
       (B) Inflation adjustment.--Paragraph (1)(B)(ii) of section 
     32( j) of such Code (relating to inflation adjustments) is 
     amended to read as follows:
       ``(ii) in the case of the $3,000 amount in subsection 
     (b)(2)(B), by substituting `calendar year 2003' for `calendar 
     year 1992' in subparagraph (B) of such section 1.''.
       (C) Effective date.--The amendments made by this paragraph 
     shall apply to taxable years beginning after December 31, 
     2002.
       (2) Expansion of mathematical error authority.--
       (A) In general.--Paragraph (2) of section 6213(g) of such 
     Code is amended by striking ``and'' at the end of 
     subparagraph (K), by striking the period at the end of 
     subparagraph (L) and inserting ``, and'', and by inserting 
     after subparagraph (L) the following new subparagraph:
       ``(M) the entry on the return claiming the credit under 
     section 32 with respect to a child if, according to the 
     Federal Case Registry of Child Support Orders established 
     under section 453(h) of the Social Security Act, the taxpayer 
     is a noncustodial parent of such child.''.
       (B) Effective date.--The amendment made by this paragraph 
     shall take effect on January 1, 2003.
       (d) Conforming Amendments.--
       (1) Repeal of Amendments.--Sections 301, 302, and 303(g) of 
     the Economic Growth and Tax Relief Reconciliation Act of 2001 
     are repealed.
       (2) Repeal of Sunset.--Title IX of the Economic Growth and 
     Tax Relief Reconciliation Act of 2001 (relating to sunset of 
     provisions of such Act) shall not apply to section 303 (other 
     than subsection (g) of such section) of such Act (relating to 
     marriage penalty relief).

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