Step Taken To Repeal 'Marriage Penalty'

The U.S. House of Representatives has voted on legislation to repeal the so-called "marriage penalty tax." It passed the House by a bipartisan vote of 323-95.

Currently, the Tax Code penalizes married couples because they are placed into the tax bracket of the highest earner in the household, rather than if each spouse filed separately. By repealing the marriage penalty tax, the current 15% bracket will be expanded, allowing more married couples to file joint returns and to qualify for a lower tax rate.

Without this legislation, the Joint Committee on Taxation estimates married couples in America will pay $96 billion more over the next decade. For over 30 million couples, this legislation means a savings of $700 a year.