By Jeff Carlson, CCH
Washington Staff Writer
Following the lead of the House of Representatives, the
Senate begins consideration this week on proposals to eliminate
the so-called "marriage penalty" in the current U.S.
tax code, which taxes married couples at a higher rate than it
does two single people at the same income level.
Senate Finance Committee Chairman William V. Roth, Jr.,
(R-Del.) on March 28, 2000, unveiled a tax relief plan for
married couples that would cost nearly $60 billion more than a
similar version (HR 6) passed by the House on February 10. The
Finance Committee is scheduled to mark up the bill on March 30.
Senate Majority Leader Trent Lott (R-Miss.) said the Senate
will take up the bill the week of April 10. Lott called the
marriage penalty "unfair" and reiterated his belief
that it should be eliminated completely. Lott added that the
bill would not have the benefit of budget reconciliation
protection and expressed hope that Democrats would not try to
attach non-germane amendments to the legislation.
However, Senate Minority Leader Thomas A. Daschle (D-S.D.)
said he was not sure he would move to prevent other amendments.
"We will be looking at opportunities to find vehicles to
move legislation," said Daschle.
The Senate bill, which provides $240 billion in tax relief
over the next 10 years, mirrors legislation passed by the Senate
in 1999 but vetoed by President Clinton. It doubles the standard
deduction to $8,800 and expands the 15 percent tax bracket for
married couples to twice that of a single taxpayer, virtually
eliminating the marriage penalty for couples with incomes up to
$52,500. The Senate version also accelerates the implementation
of tax relief over the version passed by the House.
In addition, the bill contains an additional provision that
would allow couples who pay the alternative minimum tax to
retain eligibility for some tax credits.
Sen. Kay Bailey Hutchison (R-Tex.), the lead sponsor of the
marriage tax elimination bill, said the measure is "not so
much a tax cut as it is a tax correction." Roth called the
marriage penalty tax "patently unfair and
anti-family."
To keep up-to-date regarding all the tax law changes
affecting your taxes and your business, be sure to pick up a
copy of CCH Business Owner's Toolkit Tax Guide
2000. This
easy-to-use tax reference--and accompanying FREE offer for
online tax return preparation and filing--is available at major
booksellers nationwide, by calling 1-800-248-3248, or by
visiting
