Published: April 02, 2009 03:34 pm      

Senate passes Hutchison amendment to eliminate marriage penalty

WASHINGTON, D.C. – Today, the U.S. Senate unanimously passed an amendment introduced by U.S. Sen. Kay Bailey Hutchison (R-TX), Texas’ senior Senator, to eliminate the marriage penalty in the Fiscal Year (FY) 2010 Budget and future legislation.

“I’ve fought for many years to do away with the penalty our tax code places on marriage. Nothing the IRS does should discourage one of the most fundamental institutions of our society, marriage, and I am pleased that the Senate has stripped this significant disincentive for Americans to walk down the aisle from the tax code,” said Sen. Hutchison.

Sen. Hutchison’s amendment established a point of order against any legislation which would impose or increase a marriage penalty. The marriage penalty pushes married couples into a higher tax bracket than two unmarried single wage earners living together and taking in the same combined income. After years of fighting this unfair tax policy, Congress has made important strides toward eliminating the marriage penalty by lowering tax rates, doubling the standard deduction, and simplifying other elements of the tax code.

Before these provisions were changed, 42% of married couples paid an average penalty of $1,400. Unfortunately, current marriage penalty relief is only in effect through 2010. In January, Sen. Hutchison also introduced the Permanent Marriage Penalty Relief Act of 2009 to permanently ban the provision.