[Congressional Record Volume 149, Number 79 (Monday, June 2, 2003)]
[House]
[Pages H4757-H4758]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
MARRIED COUPLES TO BENEFIT FROM RECENT TAX CUTS
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from Illinois (Mr. Weller) is recognized for 5 minutes.
Mr. WELLER. Mr. Speaker, 42 million married couples got good news
this past week when President Bush signed into law the jobs and
economic growth package, legislation that wiped out the marriage tax
penalty for 42 million married working couples this year.
This is an issue that we have been working so hard over the last
several years to address, and that is fairness in the Tax Code
affecting married couples. In the case of a husband and wife who are
both in the workforce, because they file their taxes jointly, combining
their income, in many cases, most cases, all cases, they are pushed
into a higher tax bracket. That average married tax penalty for 42
million couples is almost $1,700 a year.
Well, thanks to the President's stroke of a pen just a few days ago,
the marriage tax penalty for the vast majority of those who suffered,
almost all of them, will be eliminated this year.
{time} 1930
Let me give an example of a married couple in the district that I
represent,
[[Page H4758]]
the south suburbs of Chicago, the town of Joliet, Jose and Magdalena
Castillo and their son, Eduardo, and their little daughter, Carolina.
They are an example of a typical married couple in Illinois who suffer
the marriage tax penalty.
In fact, for Jose and Magdalena, they are both construction workers.
They are laborers, and they work hard for a living. For them, the
marriage tax penalty is about $1,400 each year. Thanks to this
legislation, the jobs and economic growth package, 42 million married
couples just like Jose and Magdalena Castillo will see their marriage
tax penalty eliminated this year.
Think about it: $1,700, that is chump change here in Washington,
where people are coming up with all sorts of creative ways to spend
billions and trillions of dollars over the next decade. But for married
couples like Jose and Magdalena Castillo of Joliet, Illinois, $1,400,
in their case that is several months' worth of car payments, that is a
couple months' worth of mortgage payments on their home, that is
several months of day care for little Eduardo and Carolina, their
children, while they are at work. It is real money for real people.
As everyone knows, in the Bush tax cut of 2001, we began the process
of eliminating the marriage tax penalty. Unfortunately, under the Bush
tax cut of 2001, for the marriage tax penalty for married couples like
Jose and Magdalena Castillo, it was phased out over the decade, which
meant the marriage tax penalty continued to be there. It just got a
little smaller each year.
Clearly, one of the greatest accomplishments of the jobs and economic
growth package is we eliminate the marriage tax penalty this year for
married couples like Jose and Magdalena Castillo.
We do it two ways. For those who do not itemize their taxes, maybe
they do not give a lot of money to their church or charity, or do not
own a home so they do not have the home interest mortgage deduction,
they benefit because we double the standard deduction for joint filers,
married couples, to twice that of singles. So for those who do not
itemize, we eliminate their marriage tax penalty.
For those who do itemize, married couples like Jose and Magdalena
Castillo of Joliet, Illinois, who are homeowners, and of course give to
their church and charity, they itemize their taxes, we eliminate the
marriage tax penalty for them by widening the 15 percent tax bracket,
which is the basic middle class tax bracket, so those who are among the
married couples will be able to earn twice as much as a single person
and stay in that 15 percent tax bracket.
The bottom line for Jose and Magdalena Castillo of Joliet, Illinois,
is we eliminate their marriage tax penalty this year, clearly one of
the greatest accomplishments of the jobs and economic growth package
that President Bush signed just this week.
So if we think about it, for 42 million married working couples,
$1,700 they will be able to have this year to spend at home to meet
their own needs. In the case of Jose and Magdalena Castillo, for their
children Eduardo and Carolina, that will be extra money for back to
school; extra money for making some improvements to their house; maybe
even take a family vacation, perhaps for the first time in their lives.
But the bottom line is, as we are working to get this economy moving
again, by giving good working people like Jose and Magdalena Castillo
what is really their money by eliminating an unfairness in the Tax Code
this year, that is extra money that is going to be spent in Joliet,
Illinois, in the district that I represent. Like 42 million other
married working couples, that extra money they are going to spend in
their home towns is going to help create jobs. When they go to the
local store and they spend some money to improve their home or they
make an improvement to their car or they do some home improvements,
that creates jobs for their neighbors and their friends.
That is what this was all about. The most important thing we can be
doing today is revitalizing this economy here at home; and by
eliminating the marriage tax penalty this year, thanks to this
Republican majority in the Congress and our good President down at the
White House, President George W. Bush, we eliminate the marriage tax
penalty this year for couples like Jose and Magdalena Castillo of
Joliet, Illinois.
____________________