FOR IMMEDIATE RELEASE
January 22, 2001
CONTACT: Lisette McSoud Mondello
SENATOR KAY BAILEY HUTCHISON INTRODUCES BILL
TO ELIMINATE MARRIAGE PENALTY
WASHINGTON, D.C. -- Senator Kay Bailey Hutchison (R-Texas) today introduced a bill to end the marriage penalty, a portion of the tax code that forces millions of American couples to pay higher taxes simply because they're married.
Senator Hutchison was the lead sponsor of the bipartisan marriage penalty relief bill that passed the last Congress twice, but was vetoed both times by President Clinton.
"For several years, we've been one signature away from marriage penalty relief," Senator Hutchison said. "Now that we have President Bush in the White House, married couples will get the tax relief they deserve."
Hutchison's bill would take effect for the 2001 tax year. It would increase the standard deduction for married couples filing jointly so that it is twice the size of the standard deduction for individuals. The standard deduction changes annually. Under current law, the deduction is set for 2001 at $4,550 for a single filer and $7,600 for a married couple filing jointly.
The Marriage Tax Penalty Elimination Act of 2001 also would widen each tax bracket for married couples filing a joint return to twice the size of the corresponding rate bracket for a single taxpayer. This would increase the lowest bracket (15 percent) in 2001 by roughly $9,000 for married couples, from $45,200 to $54,100.
The bill also increases the beginning point of the phaseout of the earned income tax credit for married couples by $2,000. The EITC is a refundable federal tax credit for eligible individuals and families who work and have earned income under $32,121 in 2001. Taxpayers' EITC credits vary depending on how many children they have.
"I am hopeful Congress will swiftly pass this bill and send it to President Bush so we can demonstrate to the American people we're committed to ending this anti-family aspect of our tax code," Senator Hutchison said.
Original cosponsors of Senator Hutchison's bill include Senators Sam Brownback (R-Kansas), Trent Lott (R-Mississippi), Don Nickles (R-Oklahoma), George Allen (R-Virginia), Jim Bunning (R-Kentucky), Conrad Burns (R-Montana), Mike Crapo (R-Idaho), Bill Frist (R-Tennessee), Phil Gramm (R-Texas), Chuck Hagel (R-Nebraska), Jon Kyl (R-Arizona), Mitch McConnell (R-Kentucky), Frank Murkowski (R-Alaska), John Ensign (R-Nevada) and John Warner (R-Virginia).
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