House Passes 'Marriage Penalty' Rollback
March 29 -- Giving a boost to President Bush's push for tax cuts, the House of Representatives today approved a $400 billion reduction in the so-called "marriage penalty."
The measure is meant to provide tax relief to married couples filing joint tax returns, by increasing the standard deduction available to them.
The 10-year tax rollback, which gained passage by a vote of 282-144 in the House, is actually larger than the plan promoted by President Bush, who has been calling for a $300 billion cut in taxes paid by married couples over the next decade.
As part of the same tax package, the House also approved an increase in the child tax credit, from $500 to $1,000.
Larger Deduction: Would It Apply to You?
The House's bill eliminates a loophole that had given married couples filing separate returns a financial edge of up to $1,500 over those filing together.
In the current tax code, the standard income tax deduction for couples filing together is $7,600. But the standard deduction for individuals, including partners in a marriage filing separately, is $4,550. The House bill would raise the joint deduction to $9,100 per couple, or exactly twice the amount that can be claimed by single filers.
Bush's own, slightly different plan would allow the lower-earning partner in a joint-filing marriage to claim a deduction of as much as $3,000 from his or her income, in addition to the standard deduction granted the couple.
Additionally, the new bill would also raise the income level at which the 15 percent income tax rate would apply to couples, from $45,000 to $54,000.
The House Ways and Means Committee approved the bill in a session last week, setting the stage for today's vote.
Congress passed a similar bill last summer, but President Clinton vetoed it.
Wednesday afternoon, the House also passed Bush's proposed $1.98 trillion budget, by a vote of 222 to 205 — virtually along party lines.
Bush Is Bullish ...
At the second presidential press conference of his administration, this morning, Bush reiterated his desire to see action on the marriage tax and child credits, in addition to the income tax cut the House approved earlier this month.
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