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Committee on Ways and Means
 

For Immediate Release
Contact: Press Office 202-225-8933
October 3, 2002

WASHINGTON - It has been nearly four and a half months since House lawmakers supported H.R. 4626, the Encouraging Work and Supporting Marriage Act of 2002, by a vast, bipartisan vote of 409 - 1. Sadly, the Democrat-led Senate shelved the bill, rather than acting on it, when they received it on May 22, 2002.

“This legislation encourages the values we hold most dear: marriage, family, and hard work,” said Ways and Means Committee Member Rep. Jerry Weller (R-IL). “It’s puzzles me that the Democrat-let Senate hasn’t brought this important bill to the floor for a vote.”

The bill passed in the House focuses on incentives to work and support for healthy marriages through five key areas:

§ Accelerating Marriage Penalty Relief for Low- and Middle-Income Families

Last year’s tax relief package eliminates the unfair marriage penalty tax by increasing the standard deduction for married couples beginning in 2005. This bill delivers tax relief for 21 million low- and middle-income Americans even sooner by enacting relief in the year 2003.

§ Simplifying Work Opportunity and Welfare-to-Work Tax Credits

The bill simplifies the Tax Code by combining and conforming most of the rules of the Work Opportunity and the Welfare-to-Work Tax Credit programs. This simplification would increase the incentives to hire individuals from eight target groups that are considered hard to hire (i.e. high-risk youths, ex-felons, etc.) and hire long-term welfare recipients.

§ Eliminating the Family Income Test for Ex-Felons Under WOTC

H.R. 4626 eliminates the current law requiring that family members of ex-felons endure complicated income tests before ex-felons can be hired, thus simplifying the Work Opportunity Tax Credit and helping ex-felons transition into the workforce.

§ Increasing the Age Limit for Food Stamp Recipients

Employers can claim tax relief for hiring certain food stamp recipients between the ages of 18 - 25. This bill encourages employers to hire low-income and low-skilled workers receiving food stamps by increasing the age from 18 - 25 years to 18 - 30 years old.

§ Expanding Incentives for Vocational Rehabilitation Referrals

Employers can claim the Work Opportunity Tax Credit for hiring disabled individuals that receive rehabilitation services under State-approved or Veteran rehabilitation plans. This bill extends this tax credit to cover individuals who are referred by a private employer network, as well.

“This essential legislation helps American families in two ways: first, it makes marriage penalty relief more quickly available to 21 million married low- and moderate-income working couples. Second, it facilitates the transition from welfare to work by simplifying the Work Opportunity and Welfare-to-Work Tax Credits and making them easier for employers and employees to use,” said Weller.