Tax & Politics--The Post: "Marriage Tax Cut Crafted"...
washingtonpost.com
>>> House Plans Vote on Marriage Tax Penalty
By Eric Pianin
Washington Post Staff Writer
Wednesday, July 12, 2000
The House today moved toward approving major tax relief for married couples for the second time this year as Republicans criticized Democrats for trying to block efforts to eliminate the so-called marriage penalty.
The GOP-crafted plan would cut taxes for married couples by $182.3 billion over 10 years by increasing the standard deduction to twice that of single taxpayers, expanding the 15 percent tax bracket for married couples and further extending benefits of the earned income tax credit to married couples.
The House overwhelmingly approved the bill in February, with 48 Democrats breaking ranks to support the Republican plan. But Democrats blocked the plan in the Senate, forcing the GOP to repeat the legislative process – this time granting the marriage penalty tax bill special immunity that eliminates the threat of another Democratic filibuster.
As they took up the marriage tax relief measure, GOP leaders sought to turn the tables on Vice President Gore and congressional Democrats who have complained about a "do-nothing" Republican Congress. House Ways and Means Committee Chairman Bill Archer (R-Tex.) said that obstructionist tactics by the Senate Democrats had forced the House to devote part of a fast-shrinking congressional calendar to passing a bill identical to one passed earlier this year.
"I'm sure we'll still hear excuses from the Democrats for why we can't do it," Archer said. "Married couples shouldn't have to wait one more day to be treated fairly by the tax code."
But Rep. Charles B. Rangel (D-N.Y.) argued that the Republican bill was far too costly and that a less expensive Democratic alternative could eliminate the marriage penalty with plenty of money left over for other pressing social needs, including a new Medicare prescription drug benefit.
A quirk in the tax code leaves millions of two-income married couples paying a bigger tax bill than they would if they had remained single. The Republican legislation would eliminate that problem, but it also provides substantial tax relief to other couples who don't suffer the penalty and in some cases receive a marriage "bonus."
The House was expected to complete work on the bill later today and the Senate planned to finish work on its more costly version of the bill by the end of the week.
President Clinton has offered to go along with the Republican version of a marriage tax relief bill if the GOP would accept his plan for a prescription drug benefit. So far, the Republicans have turned down the offer, but Rangel intended to formally present the offer today in the form of an amendment.
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