WASHINGTON – First District Congressman Paul Ryan today voted for the Marriage Penalty and Family Tax Relief Act of 2001 - legislation that would deliver significant tax relief to Wisconsin families. The bill provides tax relief for married couples to eliminate the existing marriage tax penalty and doubles the current child tax credit from $500 to $1,000 by 2006. The legislation, which would deliver nearly $400 billion over 10 years in tax relief to families, passed in the House of Representatives today by a vote of 282-144.

This marked Ryan's second opportunity to support the bill this year. As a member of the House Ways and Means Committee, Ryan last week participated in the committee's consideration of the measure and voted to pass it out of committee so that it could come before the full House of Representatives this week.

“It makes absolutely no sense that people pay higher taxes simply because they are married," said Ryan. "Our bill works to fix this very unfair twist in the tax code. It also brings immediate tax relief to families by boosting the child tax credit, starting this year. This will let families keep more of their money right away. Considering all the extra expenses that come with raising children, this is welcome news for parents, who can put that money towards school supplies, braces, or a host of other items in a family budget."

"After working to safeguard Social Security and Medicare and pay down the public debt, Congress needs to return the bulk of the surplus to the taxpayers who created it," said Ryan. "In addition to lowering tax rates for all taxpayers, we must reduce the high tax burden on families. Today's vote in the House moves us closer to this crucial goal."

The Marriage Penalty and Family Tax Relief Act substantially reduces the marriage penalty – the bias in the tax code that makes many working married couples pay more in taxes than they would if they were not married but lived together. Based on Census Bureau data, the Heritage Foundation estimates that over 61,000 taxpaying couples in Wisconsin's First District are affected by the marriage penalty.

Today's legislation increases the standard deduction for married taxpayers filing jointly to twice that for single filers. This would take effect starting next year. In addition, the legislation phases in an increase in the size of the 15-percent income tax bracket for married couples filing jointly to twice the size of the corresponding rate bracket for single filers. This provision would be fully effective for taxable years beginning after December 31, 2008.

Additionally, the legislation increases the child tax credit to $1000, phased in over six years, beginning in 2001. (Under current law, an individual may claim a $500 tax credit for each qualifying child under the age of 17.)  The following table shows the proposed increase in the amount of the child tax credit.
 

When added to the tax rate reduction plan (the Economic Growth and Tax Relief Act of 2001) which passed the House earlier this month, the expansion of the child tax credit would mean that an average family of four could get up to $560 of tax relief in 2001 ($360 from rate cuts, $200 from the additional child tax credit.)

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