Senate Floor Speech
Senator Kay Bailey Hutchison
February 12, 2004 -- Page: S1309

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.

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.