House OKs tax breaks for married couples

http://www.azstarnet.com/public/dnews/LA0776.html

Friday, 11 February 2000

ARIZONA ROLL CALL

Arizona's five Republicans voted for the bill. Democrat Ed Pastor voted against it.
WASHINGTON (AP) - Dispatching an election-year valentine, Republicans won House passage yesterday of legislation that would cut income taxes $182 billion over 10 years for all married taxpayers, including the 25 million couples who pay a ``marriage penalty'' compared with single people.
The vote, timed to coincide with Valentine's Day next week, was 268-158 to send the bill to the Senate. Although 48 Democrats joined all Republicans in favor, it was short of a veto-proof edge.
Senate passage is far from certain, and President Clinton is threatening a veto over the bill's cost and timing. Yet House GOP leaders trumpeted the measure as the first in a series of tax cuts that would return a portion of projected budget surpluses to taxpayers and limit the growth of government.
``We need a tax code that doesn't punish married couples,'' said House Speaker Dennis Hastert, R-Ill. ``They need to buy braces for the kids. They need to buy insurance for the car and the home. They don't need the federal government picking their pocket.''
It was a day for politicians of every stripe to ally themselves with the popular issue, even if they opposed this particular bill. Despite his veto warning, Clinton said at a Capitol Hill appearance, ``We know we should do this.'' But he wants marriage penalty tax relief targeted more toward lower- and middle-class taxpayers.
``We are united in saying, `Let's do it now,' '' Clinton told a Democratic rally.
The ``marriage penalty'' occurs because millions of couples who file joint returns are forced to pay taxes at higher rates than if they were single and filing separately, especially if each spouse earns roughly the same income. The penalty strikes most frequently at income levels between $20,000 and $75,000 and costs couples an average of $1,400 a year, according to congressional estimates.
The GOP bill would cut taxes for those couples as well as millions of others who already get a marriage ``bonus,'' mainly those in which one spouse earns the lion's share of family income.
It would gradually expand the bottom 15 percent tax bracket to apply to more of a married couple's income, boost the standard deduction in 2001 for married filers to twice that of singles and raise the income cap to allow more lower-income couples to claim the earned income tax credit.
About 50 million married couples filed joint income tax returns in 1997, the most recent year for which complete statistics are available from the Internal Revenue Service.
Democrats complained that half of the bill's total tax cut would go to couples who already receive a bonus and would consume a large chunk of the projected budget surplus before plans are laid to ensure the future solvency of Social Security and Medicare, to pay down the national debt and to guarantee adequate government spending.

 

 

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