Washington,
Apr 28, 2004 -
By an overwhelming bipartisan majority Wednesday afternoon, the House of Representatives passed H.R. 4181, a bill that would save millions of families from paying higher taxes next year. Introduced by Rep. Jim Gerlach, the bill would permanently eliminate the marriage penalty that is temporarily phased out due to Congress’ 2003 tax cut legislation and is set to increase in the 2005 tax year.
“This bill is about American families and couples who shoulder an additional and unnecessary tax burden simply because they’re married,” Rep. Jim Gerlach said of H.R. 4181 which passed the House 323 to 95 Wednesday. “Until 2003, married couples who filed a joint return paid taxes they wouldn’t have been responsible to pay had they filed separately. My bill extends permanently tax relief aimed at leveling the playing field for married couples.”
The bill permanently extends the marriage penalty relief that was originally enacted as a phased-in tax change in the Economic Growth and Tax Relief Reconciliation Act of 2001, and then temporarily accelerated in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Specifically, H.R. 4181 amends the Internal Revenue Code in two ways:
• It permanently extends the amount of the standard deduction for joint filers to double that for single filers.
• It increases the upper bound of the 15-percent tax bracket for joint filers to double that for single filers.
“Couples shouldn’t be punished with higher taxes simply because they’re married,” Rep. Gerlach said. “My bill ensures the marriage penalty relief isn’t reduced next year and stays in the law permanently. Ultimately, this puts money that never should have been colleted in the first place back where it belongs – in the pockets of families.”
Currently, 36 million couples throughout the country are estimated to benefit from the elimination of the marriage penalty. Prior to H.R. 4181, this relief was slated to be reduced next year and completely eliminated by 2010. Rep. Gerlach’s bill prevents more than 27 million married couples from facing an average tax increase of $300 in the 2005 tax year and more than 35 million married couples from seeing their tax bills rise by more than $700 starting in 2011.
Today's House action would continue the benefits of the 2001-passed tax relief and prevent married couples from facing the following average tax increases:
Additionally, H.R. 4181 also was amended to extend 2001 tax relief to married couples eligible for the earned income tax credit (EIC).
The 2001 tax relief bill addressed the unfairness of the treatment of married couples seeking their income eligibility level for the credit. The relief is scheduled to expire after 2010. H.R. 4181 would continue the relief permanently.
