4019 - Permanent Marriage Penalty Relief Act
(Rep. Weller (R) Illinois and 28 cosponsors)
Administration strongly supports House passage of H.R. 4019. The
Administration is pleased that the House is acting now to make an
important part of the President's tax relief plan permanent. Making
marriage penalty relief permanent would further the objectives of
the President's tax plan to lower the tax burden on families and
restore fairness by addressing inequities in the tax code.
Economic Growth and Tax Relief Reconciliation Act of 2001 provided
well-timed and much needed tax relief to the American people and
laid the foundation for a quicker return to long-term economic growth.
Key elements of this relief include: a reduction in income tax rates,
including a new low 10-percent rate; elimination of the death tax;
an increase in the child tax credit from $500 to $1,000 per child;
and a reduction in the marriage penalty.
to make the President's tax cut permanent would increase taxes by
an average of $1,040 for 104 million taxpayers, including workers,
married couples and families with children. In 2011, a median-income
family of four would see their taxes increase by $1,866 if the President's
tax cut were not extended. Failure to make marriage penalty tax
relief permanent would increase taxes by $35.2 billion.
Administration urges quick action in the Congress to make marriage
penalty relief permanent.
law that would reduce receipts or increase direct spending is subject
to the PAYGO requirements of the Balanced Budget and Emergency Deficit
Control Act (BEA) and could cause a sequester of mandatory programs
in any fiscal year through 2006. The requirement to score PAYGO
costs expires on September 30, 2002, and there are no discretionary
caps beyond 2002. The Administration will work with Congress to
ensure fiscal discipline consistent with the President's budget
and a quick return to a balanced budget. The Administration will
also work with Congress to ensure that any unintended sequester
of spending does not occur.