New Run At Ending ‘Marriage Penalty’

A bill ending the “marriage penalty” on state income tax returns is headed to the Senate, although it’s unclear whether Gov. Phil Batt will approve it.

The House voted 64-3 for legislation to boost the standard deduction given married taxpayers over the next six years until it equals twice the amount given single people. It affects only married taxpayers who take the standard deduction.

Rep. Dan Mader, R-Genesee, sponsored the bill. Last year, he had similar legislation that cleared the House. But Batt told lawmakers he would veto it because of the drain on the state treasury, and the measure never came up in the Senate.

Mader said Friday he hasn’t contacted Batt about this year’s bill. It estimates $2.6 million would be lost from next year’s tax revenue and a total of $11.2 million over six years. But Mader contends much of the loss would be covered by an increase in economic activity.

The standard deduction would go up $300 next year and $500 the next year. At the top tax rate of 8.2 percent, that would be a tax cut of $24.60 the first year and another $41 the next year.