Senators Raphael Warnock (D-GA) and James Lankford (R-OK) recently introduced the bipartisan Student Loan Marriage Penalty Elimination Act, which would end the marriage penalty for deducting student loan interest payments.
In recent comments, the two Senators lamented the fact that married couples have been punished in this way. The lawmakers argue that this legislation is not only the right thing to do, but also "the smart thing to do."
“The bipartisan Student Loan Marriage Penalty Elimination Act shows that what is often the right thing to do is also the smart thing to do,” Sen Warnock stated. “This bill will put dollars back into the pockets of married couples and families, and I am proud to work alongside Senator Lankford on this commonsense bill.”
“Marriage should never come with a tax penalty. For too long, couples with student loan debt have been treated unfairly simply because they file jointly,” added Sen. Lankford. “I’ve long worked to eliminate marriage penalties in the tax code, and this bill takes a commonsense step to ensure married couples are treated fairly.”
The Bill and Its Context
Under current law, individuals may deduct up to $2,500 in student loan interest payments from their income. Married individuals are subject to the same $2,500 total limit, even if both individuals in the couple have made student loan interest payments.
The Student Loan Marriage Penalty Elimination Act would remove this marriage penalty, allowing each person in the couple to claim the deduction, equaling $5,000 in total.
The bill was introduced to the Senate Finance Committee with the assistance of Senators Michael Bennet (D-CO) and Cynthia Lummis (R-WY).
The bill is also strikingly similar to House Resolution (HR) 3285, which bears the same name and performs the same function. HR 3285 was introduced in May of last year by Representative Glenn Grothman (R-WI) and referred to the House Ways and Means Committee.
It has made little progress since then, and the Senate’s version is likely an attempt to circumvent this halted progress.
