Marriage Tax Veto Stands

In a vote sure to echo through the fall political campaigns, the Republican-led House on Wednesday sustained President Clinton's veto of a bill cutting taxes by $292 billion over 10 years for millions of married couples.

The 270-158 vote was 16 fewer than the two-thirds necessary to override the veto of the "marriage penalty" bill. That likely killed one of the GOP's signature pieces of legislation this year while giving Republicans ammunition in their bid to help George W. Bush win the White House and keep control of Congress.

"Americans understand it is wrong to tax marriage," said House Majority Leader Dick Armey, R-Texas. "We will have to put it up on the floor next year and have a president who will sign it."

When he vetoed the measure in August, Clinton said the bill, combined with other GOP tax cuts, would have given families in the top 1 percent income group an average tax cut of $16,000, compared to only $220 for those earning middle incomes.

Democrats insisted they favored a more limited bill targeted at the middle class, one that would leave a greater share of the projected budget surplus for other priorities. They accused Republicans of pushing for an enormous tax cut instead of negotiating a compromise in order get a a campaign issue.

"It's the show that counts," said Rep. Steny Hoyer, D-Md.

Even if the House had approved the override, there was virtually no chance the Senate would have.

Last week, the House fell 14 votes short of overriding Clinton's veto of a bill abolishing estate taxes, another issue the GOP will highlight in fall election campaigns. The president last year vetoed a 10-year, $792 billion Republican tax cut that included both estate tax and marriage penalty provisions.

"Republicans believe that the federal budget surplus must be returned to the men and women who earned it," said House Majority Whip Tom DeLay, R-Texas. "President Clinton ignored a strong, bipartisan consensus when he rejected the effort to achieve this goal through tax relief."

The marriage penalty bill would have cut income taxes for almost all married couples, particularly the 25 million with two incomes who pay more than they would if single. The legislation would also have cut taxes for millions of couples who now enjoy an income tax bonus, generally those in which one spouse earns significantly more than the other.

"It provides little relief to families that need it most, while devoting a large fraction of its benefits to families with higher incomes," Clinton said in his veto message.

The president also said marriage penalty relief could be targeted to middle-class taxpayers at lower cost, preserving more of the surplus for other needs such as education spending, reducing federal debt and a Medicare prescription drug benefit.

But during a White House meeting with congressional leaders Tuesday, the president indcated there was still room for tax relief before Congress adjourns.

"We've got to decide which tax cuts we're for and how much does that cost this year," the president said.

The marriage penalty bill would have:

Gradually expanded the bottom 15 percent income tax bracket for married couples to twice the current corresponding bracket for single taxpayers.

Raised the standard deduction for married couples who do not itemize, to equal that of two single people.

Increased the earned-income tax credit limit for low-income families by $2,000 a year.

Extended through 2004 a current exemption from the alternative minimum tax for married couples who claim personal credits, such as the $500 per-child tax credit.