About eight or nine moderate to conservative Senate Democrats could support the Republican proposal if its cost were trimmed, Beach said. Many senators are fielding complaints from taxpayers, especially working women, about the issue, he said. The marriage-tax penalty refers to the higher taxes that married couples pay when both work and they file a joint return. One reason is a less-generous standard deduction for couples than for two single people. The current system hurts about 42 percent of couples, while helping about 51 percent.
Couples often end up paying lower taxes when one spouse earns significantly more than the other.
I don't think there's any doubt about that. The Roth-Hutchison bill provides marriage penalty relief by equalizing the standard deduction and income tax brackets so the rate for married couples is twice that of singles. Expanding the amount of income subject to the 15 percent tax rate and the 28 percent rate so that more income is taxed at a lower rate. Expanding the brackets for married couples would address a marriage penalty that arises when couples get pushed into higher brackets. The credit provides low-income workers with a partial refund of payroll taxes, allowing many to remain working and off welfare.