64 Democrats Support Bipartisan Tax Relief for Millions of Married Couples & Families with Children

WASHINGTON- The House of Representatives today approved a bipartisan plan relieving millions of married couples of an unfair tax burden and providing millions of families with children tax relief beginning this year. The bill passed by a vote of 282 to 144 with 64 Democrats voting in favor of the plan. The Marriage Penalty and Family Tax Relief Act of 2001, will provide $399 billion over 10 years in tax relief. A brief summary is attached.

“Married couples shouldn’t be discriminated against by the tax code. That’s not fair and our plan will fix that. We should also help stay-at-home moms and dads in this bill. Raising a child -- especially in this day and age -- is the most important job of being a parent, and so this bill helps them as well. In addition to fixing the marriage tax penalty, we help millions of families with children. Under this plan, a family of four would get an additional $1,000 in tax relief to spend or save however they wish; for new clothes, college savings, or a host of other items in a family budget,” said Chairman Bill Thomas (R-CA).

• The plan raises the standard deduction for married couples filing jointly so that it is equal to twice the standard deduction for single filers. It also expands the lowest present tax bracket (15%) to twice that of the corresponding bracket for single filers.

• To help low income working families, the plan increases the Earned Income Credit (EIC), making more couples eligible for EIC assistance. The plan also repeals the current-law provisions that offset the refundable child credit and the earned income credit by the amount of the alternative minimum tax.

• The plan doubles the child credit from $500 to $1000 by 2006, increasing the credit to $600 retroactive to this year. The plan would also make the child credit fully exempt from the alternative minimum tax.

• When coupled with the Economic Growth and Tax Relief Act passed on March 8^{th, the expanded child credit would provide an average family of four up to an additional $560 in tax relief for 2001 ($360 from marginal rate cuts plus $200 from an additional $100 per child tax credit in 2001).}

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