Permanently Extending Increased Standard Deduction, and 15-Percent Individual Income Tax Rate Pracket Expansion for Married Taxpayers...

PERMANENTLY EXTENDING INCREASED STANDARD DEDUCTION, AND 15-PERCENT INDIVIDUAL INCOME TAX RATE BRACKET EXPANSION, FOR MARRIED TAXPAYERS FILING JOINT RETURNS -- (House of Representatives - April 28, 2004)

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Mr. BLUMENAUER. Mr. Speaker, fixing the "marriage penalty" and increasing the earned income tax credit (EITC) for low-income families are important and long-overdue steps toward tax fairness. I support both measures but wish that Congress had made reducing the tax burden for dual-income middle-class families and those most in need of tax relief its top priority 3 years ago, instead of focusing tax relief primarily on the wealthiest Americans.

Improving the fairness of our tax code is a laudable goal. The Bush tax policies passed by Congress have added significantly to our national deficit. Congress need not continue to exacerbate the budget while providing reasonable tax relief. As this legislation is written, over $100 billion will be added to our national deficit. The Democratic Substitute, which I support, instead would pay for marriage penalty relief and an increase in the EITC by reducing tax cuts available to couples earning more than one million dollars a year. The Democratic proposal provides a more responsible manner of providing tax fairness that does not further burden future generations with more debt.

Mr. STARK. Mr. Speaker, I rise today to oppose the fiscally irresponsible and inadequate H.R. 4181, "Make Permanent Marriage Penalty Relief," and in support of the Democratic Substitute that helps more families and is fiscally responsible.

The Republicans have brought a bill to the floor that is not paid for. In fact, their plan would add $105 billion over the next 10 years to the federal budget deficit.

In contrast, the Democratic substitute provides marriage penalty tax relief to more Americans than the Republicans bill, but pays for it in a fair manner by limiting tax cuts for the wealthiest Americans.

The Democratic substitute provides more marriage penalty relief to 13 million families than the GOP bill by ensuring that tax relief from the marriage penalty is not taken away or reduced by the alternative minimum tax. The Republican bill denies full marriage penalty tax relief to 13 million families next year, including more than 25 percent of the middle-class families making $75,000 to $100,000, by failing to fix the inequities caused by the current alternative minimum tax system.

The Democratic substitute also provides immediate marriage tax penalty relief to more Americans by increasing the value of the Earned Income Tax Credit for more lower-income working couples. The Republicans fail to give these families immediate relief in their bill.

Again, the Republican bill demonstrates the misguided priorities of the Republican Party. Rather than ensuring that all hard working families get marriage tax penalty relief, the Republicans have decided to bankrupt this country to ensure that their fat cat rich elite donors continue to get away with paying absurdly low taxes. The ultimate losers are our children who will be left to pay the bill for the large budget deficits that President Bush and our Republican colleagues in Congress are planning to leave them.

I urge my colleagues to support the Democratic substitute bill and vote against the insufficient and unaffordable Republican proposal.

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