FOR IMMEDIATE RELEASE
May 28, 2003
CONTACT: Kevin Schweers
SENATOR HUTCHISON: ELIMINATE MARRIAGE PENALTY ONCE AND FOR ALL
Will Introduce Bill to Make Relief Permanent
WASHINGTON, DC -- U.S. Senator Kay Bailey Hutchison (R-TX) today lauded President Bush for signing into law the Jobs and Growth Tax Relief Reconciliation Act of 2003 (H.R. 2). She also announced plans to introduce new legislation when the Senate reconvenes next week to make tax relief from the marriage penalty permanent, avoiding a multi-billion dollar tax increase two years from now.
H.R. 2 repeals the marriage tax penalty for 2003 and 2004, only to see it reimposed in 2005 and then slowly phased out again by 2009 before returning to record levels in 2011, when The Economic Growth and Tax Relief Reconciliation Act of 2001 expires. Senator Hutchison's legislation would eliminate the marriage penalty in 2005 and make those changes permanent.
"This is about fairness. Saying ‘I do' shouldn't be a taxable offense. It's wrong for the government to tax marriage and it will be just as wrong in 2005 or 2011," said Senator Hutchison, lead sponsor of Senate efforts to eliminate the marriage penalty. "Today we are giving millions of working couples relief from the marriage penalty. But even as the ink dries on this bill, a tax increase looms in the near future. We need to finish the job and eliminate the marriage penalty now."
Hails Enactment of $350 Billion Jobs and Growth Bill
Senator Hutchison also offered praise for the $350 billion tax relief and state aid package, saying: "We want to put people back to work. I am pleased Congress and the president took bold action to promote prosperity and bring more equity to working families.
"My home state of Texas is facing huge budget problems. I worked to assure a fair formula to help overcome the health care crisis in Texas and other states," Senator Hutchison added.
H.R. 2 contains key provisions introduced by Senator Hutchison, including lower taxes on dividends. The legislation will:
- Accelerate the 2001 tax cuts for individuals and small businesses, reducing marginal rates, and expanding the ten percent bracket.
- Reduce taxes on dividends paid to shareholders and on capital gains from the sale of stocks and other assets to a maximum fifteen percent.
- Speed up tax breaks for families by increasing the child tax credit from $600 to $1,000.
- Help small businesses create jobs by raising expensing and depreciation levels.
- Send $20 billion in aid to states over the next two years, including $1.3 billion for Texas
#