04/14/1999 01:50 PM House FIN

HOUSE JOINT RESOLUTION NO. 20                                                                                                   
                                                                                                                                
Urging the Congress to amend the Internal Revenue Code                                                                          
of 1986 to eliminate the marriage penalty by providing                                                                          
that income tax rate bracket amounts, and the amount of                                                                         
the standard deduction, for joint returns shall be                                                                              
twice the amounts applicable to unmarried individuals.                                                                          
                                                                                                                                
REPRESENTATIVE GAIL PHILLIPS pointed out that for the past                                                                      
28 years, married couples have paid a higher tax rate and                                                                       
have received a lower standard deduction than two single                                                                        
individuals under the Internal Revenue Service (IRS) Code                                                                       
law of 1986.  The proposed resolution would send a message                                                                      
to Congress emphasizing Alaska State Legislature's support                                                                      
of removing that penalty.                                                                                                       
                                                                                                                                
Representative Phillips noted that at this time, there are                                                                      
several bills before the U.S. Congress proposing to                                                                             
eliminate the marriage tax penalty primarily through                                                                            
increasing the standard deduction allowed for married                                                                           
couples and adjusting the tax brackets.  She urged the                                                                          
Committee's support of HJR 20.                                                                                                  
                                                                                                                                
Representative Foster MOVED to report HJR 20 out of                                                                             
Committee with individual recommendations and with the                                                                          
accompanying fiscal note.  There being NO OBJECTION, it was                                                                     
so ordered.                                                                                                                     
                                                                                                                                
HJR 20 was reported out of Committee with a "do pass"                                                                           
recommendation and with a fiscal note by the House Special                                                                      
Committee on Economic Development and Tourism dated 3/31/99.