Marriage Tax Bill Goes to White House

The Republican-controlled House and Senate have reached agreement on a marriage tax relief bill that would provide a more fair income tax rate for married couples where both spouses work.

The bill changes the standard deduction for married couples to be twice the standard deduction for unmarred taxpayers, and this change would be retroactive to January 1, 2000.

In addition, the bill provides for a change in the tax brackets so that single or married, the tax on income is the same. This change would be phased in over a 10-year period.

The bill also raises the earned income credit income cap by $2,000 for lower-income married couples, thus making it easier for some taxpayers to claim this credit. And, couples who found they were unable to use the recently-enacted Child Care Credit due to a conflict with the Alternative Minimum Tax, will be relieved of that conflict if this bill is made into law.

President Clinton has stated his intention to veto this bill, and it appears that Congress does not have the votes necessary to override this veto. Barring any surprise from the White House, this bill will probably not become law at this time.

You may like these other stories...

IRS must take oath on Lerner emails: judgeMackenzie Weinger of Politico reported on Thursday that a federal judge ordered the IRS to explain under oath how it lost emails connected to Lois Lerner, the ex-IRS official at the...
The Republican-controlled House of Representatives passed a bill on Friday morning that would permanently extend the bonus depreciation tax break for businesses.The measure, HR 4718, which was crafted by Representative Pat...
The Republican-led House of Representatives is expected to pass a bill this week that would permanently extend the bonus depreciation tax break. But don’t expect President Obama to sign it.The Obama administration said...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.