FOR IMMEDIATE RELEASE
February 14, 2001
CONTACT: Lisette McSoud Mondello
SENATOR KAY BAILEY HUTCHISON JOINS SENATE COLLEAGUES
TO URGE REPEAL OF MARRIAGE TAX PENALTY
WASHINGTON, D.C. -- Using Valentine's Day as a backdrop, Senator Kay Bailey Hutchison (R-Texas) today joined her Senate colleagues and a newly engaged couple to urge passage of her bill to end the marriage tax penalty.
"When Cupid aims his arrow at a couple in love, the hit shouldn't be from the tax man. Today we are reaffirming our vow to America's married couples that we will eliminate the marriage tax penalty," Sen. Hutchison said at a press conference at the Capitol. "This unfair portion of the tax code forces millions of Americans to pay higher taxes simply because they're married."
Senator Hutchison introduced S. 11 on Jan. 22. She was the lead sponsor of the bipartisan marriage tax 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 tax penalty relief," Sen. Hutchison said. "Now that we have President Bush in the White House, married couples will finally get the tax relief they deserve."
Senator 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. 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.
Cosponsors of the bipartisan legislation include Senators Sam Brownback (R-Kan.), Trent Lott (R-Miss.), Don Nickles (R-Okla.), Robert Byrd (D-W.V.), George Allen (R-Va.), Wayne Allard (R-Colo.), Jim Bunning (R-Ky.), Conrad Burns (R-Mont.), Thad Cochran (R-Miss.), Mike Crapo (R-Idaho), Pete Domenici (R-N.M.), John Ensign (R-Nev.), Bill Frist (R-Tenn.), Phil Gramm (R-Texas), Chuck Hagel (R-Neb.), Jon Kyl (R-Ariz.), Mitch McConnell (R-Ky.), Frank Murkowski (R-Alaska), Bob Smith (R-N.H.) and John Warner (R-Va.).
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