Promising to reduce the taxes of American married, two-income couples by some $400 billion, the House of Representatives today passed The Marriage Penalty and Family Tax Relief Act by a vote of 282-144. The Republican sponsored bill won the votes of 64 Democrats.

As the second part of President Bush's $1.6 trillion, 10-year tax cut plan, the measure approved by the House today would ease what has become known as the "marriage penalty" tax by increasing the allowed standard deduction for married couples.

Starting in 2002, the standard allowed deduction for married two-income couples would increase from $5,000 to double that allowed for a single taxpayer. In addition, income limits of the 15 percent tax bracket for married couples who itemize their deductions would be gradually expanded over the next eight years.

The bill passed today would also increase the child tax credit from the current $500 per child to $1000 per child in annual $100 increments by 2006.

A similar marriage tax reduction act passed by Congress last year was vetoed by President Clinton.

On March 8, the House voted its approval of the core of President Bush's tax cut plan, a $958 billion, across-the-board reduction in tax rates phased in over 10 years. [See: House Passes Bush Tax Cut Bill]

"Death" Tax Next: The next target of President Bush's tax cutting axe, the estate or "death" tax, will be considered by the House Ways and Means Committee starting next Thursday (April 5, 2001). The proposed bill would phase out both the estate and gift taxes.

Last year, 65 Democrats joined Republicans in passing a similar estate tax elimination bill ultimately vetoed by President Clinton.

Senate Battles Ahead: While President Bush's tax cutting bills click through the Republican-controlled House with relative ease, they face a far tougher time in an evenly divided Senate. Already spilt 50-50 between the parties, some Republican Senators have expressed opposition to the Bush tax bills as passed by the House.

Opponents argue that the president's plan is weighted to assist mainly upper-income individuals and that the government's ability to pay for the tax cuts is based solely on continued growth of the budget surplus.

Other critics suggest that the future tax cuts offered by the plan will not help stimulate the currently sagging economy, and that immediate direct tax rebates paid this year are needed instead.

On Tuesday (March 27, 2001), President Bush delivered a major address in Kalamazoo, Michigan on the importance of a permanent, long-term tax cut to stimulating the economy.

"We must put more money in the hands of consumers in the short-term, and restore confidence and optimism for the long-term," stated President Bush. "We need an immediate stimulus for our economy and a pro-growth environment for years to come."

To congressional critics of this tax cut plan, President Bush stated, "You know, some in the Congress are saying, well, Mr. President, your plan is too little. And some are saying, it's way too big. But after careful thought I can look in the eye and say, I think it's just right. And I hope you'll join me." [Complete text of the president's address]