[Congressional Record Volume 150, Number 18 (Thursday, February 12, 2004)]
[Senate]
[Pages S1309-S1310]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

    By Mrs. HUTCHISON (for herself, Mr. Brownback, Mr. Bunning, Mr. 
                      Chambliss, and Mr. Cochran):

  S. 2093. A bill to maintain full marriage tax penalty relief for 
2005; to the Committee on Finance.
  Mrs. HUTCHISON. Mr. President, I am pleased to introduce a bill to 
continue relief from the marriage penalty--the most egregious, 
antifamily provision of the Tax Code. One of my highest priorities in 
the U.S. Senate has been to relieve American taxpayers of this punitive 
burden.

[[Page S1310]]

  Last year, I worked with my colleagues and President Bush to pass a 
$350 billion jobs and economic growth package to put Americans back to 
work and stimulate the economy. We are now seeing the fruits of our 
efforts. The tax relief has left more money in the pockets of 
individuals and small businesses, freeing the engines of the economy. 
Private sector growth is strong, the stock market is up, and jobs are 
being created.
  One of the most important provisions of the legislation provided 
immediate marriage penalty relief by raising the standard deduction and 
enlarging the 15-percent tax bracket for married joint filers to twice 
that of single filers. This provision will save 34 million married 
couples an average of almost $600 on their 2003 tax bills.
  Enacting marriage penalty relief was a giant step for tax fairness, 
but it may be fleeting. Even as people begin to feel the benefits from 
the relief, a tax increase looms in the near future. Since the bill was 
restricted by limitations imposed by Congress, the marriage penalty 
provisions will only be in effect for 2 years. In 2005, marriage will 
again be a taxable event for millions of Americans.
  Without relief, 48 percent of married couples will again pay more in 
taxes.
  Even as the economy strengthens, many families face difficult choices 
in making ends meet. We must make sure we do not backtrack on this 
important reform.
  The benefits of marriage are well established, but without marriage 
penalty relief, the Tax Code provides a significant disincentive for 
people to walk down the aisle. 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 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.
  I have sought to make full marriage penalty relief permanent. 
However, given the current budget constraints and the politics of an 
election year, this will be difficult. I therefore am offering this 
bill to extend last year's victory for married couples for 1 year, 
through 2005.
  As Valentine's Day approaches, we should celebrate marriage, not 
penalize it. 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 build on the 2003 tax cuts and say ``I do'' 
to extending marriage penalty relief today.
  Mr. President, I ask unanimous consent that a copy 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. 2093

       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 
     Extension Act of 2004''.

     SEC. 2. FULL ELIMINATION OF THE MARRIAGE PENALTY FOR 2005.

       (a) Standard Deduction.--Paragraph (7) of section 63(c) of 
     the Internal Revenue Code of 1986 (relating to applicable 
     percentage) is amended by striking ``174'' and inserting 
     ``200''.
       (b) 15-Percent Bracket.--Subparagraph (B) of section 
     1(f)(8) of the Internal Revenue Code of 1986 (relating to 
     applicable percentage) is amended by striking ``180'' and 
     inserting ``200''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.
       (d) Application of EGTRRA Sunset to This Section.--Each 
     amendment made by this section shall be subject to title IX 
     of the Economic Growth and Tax Relief Reconciliation Act of 
     2001 to the same extent and in the same manner as the 
     provision of such Act to which such amendment relates.
                                 ______