Congressman Denny Rehberg

Action Will Prevent Tax Increase on 113,000 Montana Couples

WASHINGTON, DC - Montana’s Congressman, Denny Rehberg, hailed passage today of legislation that will prevent tax increases on 30 million married couples. A cosponsor of the measure, Rehberg said the plan would benefit 113,000 married couples in Montana by making permanent relief from the marriage penalty that was temporarily enacted in 2001.

“Our vote today prevents a tax increase on working families, and I urge the Senate to quickly approve this legislation,” Rehberg said. “Without this measure, the average family of four will see their taxes rise by more than $300.”

Before 2001, husbands and wives earning similar incomes paid more in taxes than two single taxpayers filing individually. Tax relief passed by Congress in 2001 phased out these penalties by providing couples a standard deduction that is twice that of single taxpayers. Today’s vote in the House continues the benefits of the 2001-passed tax relief, and prevents married couples from facing the following average tax increases:
Income range / avg. current tax liability / avg. tax increase / % increase in tax

$ 10,000 to $ 15,000 / $ 6 / $ / 33 / 563%

$ 15,000 to $ 20,000 / $ 168 / $ 116 / 69%

$ 20,000 to $ 25,000 / $ 592 / $ 126 / 21%

$ 25,000 to $ 30,000 / $ 954 / $ 127 / 13%

$ 30,000 to $ 40,000 / $ 1,525 / $ 178 / 12%

$ 40,000 to $ 50,000 / $ 2,466 / $ 188 / 8%

$ 50,000 to $ 75,000 / $ 4,645 / $ 260 / 6%

$ 75,000 to $100,000 / $ 8,274 / $ 573 / 7%

Source: Tax Foundation Individual Tax Model