This article is written in my opinion only.  

As the bill moves I will update this page.   The page was last updated   January 14, 2002

In my opinion Congress is playing around with voters by trying to eliminate the marriage penalty.    If the bill passes tax strategies will change for the 2001 tax return. 

To date there has not been enough information to really pass a pro or con opinion on this new bill. 

To try to summaries,  the tax structure is still set up when the man would go to work and the woman would stay home.   In today's society we do not see much of that.   Lots of newlyweds find themselves having to pay large taxes after their first year of marriage.  Because they go to work and change their filing status to married.    Little do they know, that now they are married they will be paying more taxes than if they did not engage in holy matrimony. 

On your W4 when you indicated married that means your wife stays home,   There is no additional income and you have an extra exemption credit.     

If you are both working. Your AGI goes up which can drive you from paying i.e. 15% of your tax to 28% tax just in Federal.   Also you lose money in the standard deduction.  It really hurts you if you hit AMT.     Everyone's taxes in a bit different.   So please consultant your tax advisor. 

So what is Congress all hot about the new ideal for the relief of marriage penalty.  Senate passed a bill the would supposedly eliminate the``marriage penalty'' 

From recent news articles I read that  Senate voted 61-38 for the legislation that would reduce government revenue by $248 billion over 10 years.  To the best of my knowledge this money is going to medicare prescriptions and smaller classrooms.   That in it self is a whole other debate that I hold opinion to.   

The relief for marriage penalty bill will be presented to Clinton before
the Republican National Convention begins on July 31, 2000  Congress needs to also submit  a measure creating an acceptable medicare prescription and smaller classroom. 

So lets see if you get married you are paying extra taxes for medicare prescriptions and smaller classrooms.

The Senate-passed ``marriage penalty'' bill would cut taxes for approximately 45 million couples, including about 25 million two-earner households in which couples pay more than they would if single. It also would cut taxes for millions of other couples who actually receive a marriage ``bonus'' because one spouse earns the most income.

The bill would:

Gradually enlarge the 15 percent and 28 percent income tax brackets for
married couples so they are roughly twice the size of those for single
people. The House bill only widens the 15 percent bracket.  

In 2001, boost a couple's standard income tax deduction so it is equal to
those of two single people. In 2000 dollars, that's an increase from $7,350
to $8,800.

Raise by $2,500 the income cap for couples who want to claim the earned
income tax credit.

Ensure that certain personal credits, including the $500 per-child tax
credit, don't ensnare taxpayers in the complex alternative minimum tax.

So will this really help the married couple or just increase benefits for the low income taxpayers.     Most joint incomes now are on the border line of AMT and that will cause them to start the phase out on deductions and exemptions.  Will it help the 28% taxpayers and bring them down to the 15% tax bracket.  I don't know because not enough information has been released on this issue yet.