Updated Tax & Politics--The Post:"House Votes to End Marriage Penalty"...
washingtonpost.com
>>>By Eric Pianin
Washington Post Staff Writer
Wednesday, July 12, 2000
The House today approved major tax relief for married couples by a vote of 269-159. The vote came as Republicans criticized Democrats for trying to block efforts to eliminate the so-called marriage penalty.
The GOP-crafted plan cuts taxes on 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 last 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 with 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 the 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."
With the House passage of the bill, the Senate planned to finish work on its more costly version of the bill by the end of the week. But before taking up the marriage tax cut, the Senate will take up the 10-year, $104 billion Republican bill that would gradually scrap federal estate taxes by 2010. Passage of that measure is expected before week's end.
President Clinton has offered to go along with the Republicans 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.
The Associated Press contributed to this report.
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