Revised House Tax-Cut Bill Swells Deficit And Continues Less Favorable Treatment Of Lower-Income Couples

Publication Date: April 2004

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Joel Friedman

Research Area: Banking and finance

Keywords: Tax code; Fiscal future; Economic projections; Income diversity

Type: Report

Abstract:

The House of Representatives passed on April 28 by a vote of 323-95 a tax-cut bill that will make permanent all of the “marriage-penalty relief” tax cuts originally enacted in 2001. Originally, the bill made permanent only the provisions benefiting middle- and upper-income couples enacted in 2001, and failed to make permanent the provision for low- and moderate-income families enacted that year. Faced with growing criticism over this omission, the House Republican leadership modified the bill before bringing it up for a vote and made the low-income marriage penalty relief provision permanent as well.