Make Marriage Great Again Act of 2025This bill modifies the federal income tax rate brackets for married individuals filing joint federal income tax returns so that they are twice the amount of the federal income tax rate brackets for unmarried individuals filing federal income tax returns (thus eliminating the tax effect commonly known as the marriage penalty). Further, under the bill, the federal income tax rate brackets for married individuals filing separate federal income tax returns no longer applies for tax years beginning after December 31, 2024.
Impact
Should HB 320 be enacted, it would have significant implications for married taxpayers. The elimination of the marriage penalty could effectively lower the tax burden for many couples, allowing them to retain more of their income. This change is expected to make tax provisions more equitable by aligning the tax obligations of married couples more closely with those of singles, thus addressing a recognized concern among taxpayers regarding unfair tax burdens.
Summary
House Bill 320, titled the 'Make Marriage Great Again Act of 2025', proposes amendments to the Internal Revenue Code of 1986 aimed at eliminating the marriage penalty present in income tax rate brackets. The legislation seeks to adjust the income tax structure to ensure that married couples are not disadvantaged in comparison to single filers. Specifically, it aims for a recalibration of tax brackets that doubles the applicable dollar amounts for married couples while also altering other related tax provisions to mitigate the existing penalty.
Conclusion
In summary, HB 320 aims to reform the tax system concerning married couples by removing the marriage penalty, which has been a longstanding issue in tax law discussions. Its passage would change how income taxes are calculated for married individuals, influencing budgetary considerations and revealing the balance legislators must strike between equitable tax treatment and fiscal responsibility.
Contention
Nonetheless, the bill is subject to potential contention among lawmakers and stakeholders. Proponents argue that it promotes fairness in the tax system, allowing married couples to benefit from tax relief that reflects their collective income. Conversely, opponents may express concerns about the fiscal impact of such changes on government revenues, suggesting that eliminating the marriage penalty could lead to budget shortfalls or require compensatory adjustments elsewhere in the tax code.
SALT Marriage Penalty Elimination Act This bill increases from $10,000 to $20,000 the amount that a married couple filing a joint tax return may deduct as state and local taxes (thus eliminating the tax effect known as the marriage penalty with respect to the deduction).
Earned Income Tax Credit Equity for Puerto Rico Act of 2021 This bill makes residents of Puerto Rico eligible for the federal earned income tax credit.
Assuring Medicare’s Promise Act of 2023 This bill increases net investment income tax revenues by applying such tax to the trade or business income of certain high income taxpayers and includes the increased tax revenues in the Federal Hospital Insurance Trust Fund.
A bill to amend the Internal Revenue Code of 1986 to allow a portion of general business credit carryforwards to be transferred by certain taxpayers affected by federally declared disasters.
This bill allows a deduction from gross income (above the line deduction) for attorney fees and court costs awarded with respect to a qualifying wildfire disaster (i.e., any forest or range fire that is a federally declared disaster, occurs in a disaster area, and occurs in 2015 or later). The bill excludes from the gross income of a taxpayer, for income tax purposes, amounts paid to compensate victims for losses or damages in connection with a qualifying wildfire disaster.
Federal Employee Combat Zone Tax Parity Act This bill excludes from gross income, for income tax purposes, the compensation of a federal employee who served in a combat zone or was hospitalized as a result of wounds, disease, or injury incurred while serving in a combat zone. The bill terminates the exclusion two years after the end of combatant activities in such zone.
Permanently Repeal the Estate Tax Act of 2023 This bill repeals the federal estate tax, effective for estates of decedents dying after December 31, 2022.