Washington — House Republicans queued up legislation Wednesday to alleviate the income tax marriage penalty and begin raising the $500 child credit immediately at a cost of nearly $400 billion over 10 years.
It sparked renewed criticism from Democrats that tax cuts will crowd out other priorities.
Rep. Bill Thomas, chairman of the House Ways and Means Committee, said the panel would consider the measure today and would have it before the House for a vote next week. The marriage penalty provisions are much broader than those advocated by President Bush, while the plan's gradual doubling of the child tax credit omits part of the president's proposal.
"We thought this created a better blended package," Thomas, R-Calif., said.
Coupled with the 10-year, $958 billion income tax cut passed this month, House Republicans are edging closer to the $1.6 trillion price tag for tax cuts that Bush is insisting upon. Democrats say the true costs will be higher, so high they will jeopardize government programs from education to Medicare. "How do you plan to do all these other things with such a massive tax cut?" asked Rep. John Lewis, D-Ga. "I don't understand how you're going to do it."
As the economy continues to sputter, lawmakers are searching for ways to give more of the tax relief immediately. The House GOP plan would raise the $500 child tax credit to $600 retroactive to Jan. 1 of this year, and then gradually increase it to $1,000 by 2006.
Bush wants to raise the income limit at which the credit begins to phase out for married couples from $110,000 to $200,000, but the House measure would keep the limits as they are. In addition, Thomas included provisions enabling more lower-income people to claim the credit.
The bill is also quite different from Bush's proposal in lowering the marriage penalty, a feature of the income tax structure that causes 25 million two-earner households to pay higher taxes than do two single people.
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