[Congressional Record Volume 149, Number 82 (Thursday, June 5, 2003)]
[Senate]
[Pages S7488-S7489]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. HUTCHISON (for herself, Mr. Brownback, Mr. Bunning, Mr. 
        Burns, Mr. Cochran, Mr. Fitzgerald, and Mr. Hagel):
  S. 1196. A bill to eliminate the marriage 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.
  Last week President Bush signed into law a $350 billion jobs and 
economic growth package to put Americans back to work and stimulate the 
economy. The bill provides immediate marriage penalty relief by 
enlarging the standard deduction and the 15 percent tax bracket for 
married couples filing jointly to twice that as for single filers. This 
provision will save 34 million married couples an average of $589 this 
year alone.
  Enacting marriage penalty relief is a giant step for tax fairness, 
but it may be fleeting. The Jobs and Growth Act was just signed, but 
even as the ink dries a tax increase on married couples looms in the 
near future. Since the bill was restricted by artificial limitations to 
$350 billion, the marriage penalty provisions will only be in effect 
for two years. In 2005, marriage will again be a taxable event for 
millions of Americans. Similar restrictions were placed on the 2001 tax 
cut, so, while relief will be phased in by 2009, it will disappear for 
good in 2011 unless we act decisively.
  Millions of couples across America will be penalized once more by our 
tax code simply because they are married. Without marriage penalty 
relief, 48 percent of married couples will again pay the government an 
average $1,400 more in taxes.
  Given the state of the economy and the difficulty many families face 
in making ends meet, we must make sure we do not backtrack on this 
important reform.
  Without marriage penalty relief, the tax code provides a significant 
disincentive for people to walk down the aisle, and the benefits of 
marriage are well established. Marriage is a fundamental institution in 
our society and should not be discouraged by the IRS. Children living 
in a married household are far less likely to live in poverty or

[[Page S7489]]

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.
  The bill I am offering would make the marriage penalty relief in the 
Jobs and Growth Act permanent. It also will accelerate changes to the 
earned income tax credit that were passed in the 2001 tax reform bill. 
This will reduce the marriage penalty on lower income couples.
  We cannot be satisfied until couples never again must decide between 
love and money. 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.
  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. 1196

       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 ``Permanent 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 ``the applicable percentage of the dollar 
     amount in effect under subparagraph (D)'' in subparagraph (A) 
     and inserting ``200 percent of the dollar amount in effect 
     under subparagraph (C)'';
       (B) by adding ``or'' at the end of subparagraph (B);
       (C) by striking subparagraph (C);
       (D) by redesignating subparagraph (D) as subparagraph (C); 
     and
       (E) by striking the last sentence.
       (2) Conforming amendments.--
       (A) Paragraph (4) of section 63(c) of such Code is amended 
     by striking ``(2)(D)'' each place it appears and inserting 
     ``(2)(C)''.
       (B) Paragraph (7) of section 63(c) of such Code is 
     repealed.
       (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.--Paragraph (8) of 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 to read as follows:
       ``(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) Conforming amendment.--The heading for subsection (f ) 
     of section 1 of such Code is amended by striking ``Phaseout'' 
     and inserting ``Elimination''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2002.
       (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 amendment.--Sections 303(g) of the Economic 
     Growth and Tax Relief Reconciliation Act of 2001 is 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 sections 301, 302, 
     and 303 (other than subsection (g) of such section 303) of 
     such Act (relating to marriage penalty relief).
                                 ______