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Child-care slots are limited, and tax deductions for couples with kids are too low to make a difference.
The main provisions of Mr McCain's plan are to extend the 15% tax bracket to cover 25m taxpayers, raise standard deductions for couples, and introduce a Family Security Account, into which middle-class families can place up to $6,000 a year and pay taxes only when the money is withdrawn.
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Currently the deduction for couples filing jointly is 1.67 times the deduction for single people.
For this year, the standard deduction for couples filing jointly is $7,350, or 1.67 times the deduction for single people, $4,400.
Mr. Archer's bill would raise the standard deduction for couples so that it is twice that for single taxpayers.
Excluding any change for inflation, the legislation would increase the deduction for couples filing jointly next year to $8,800.
The President proposed a standard deduction for couples of $4,000, and the House approved one of $4,800.
In other cases, couples pay the penalty because the standard deduction for couples filing jointly is less than half the standard deduction for a single filer.
*The standard deduction for couples would gradually become twice that for single people, and other steps would be taken to reduce the taxes of couples.
Starting then, the bill would gradually increase the standard deduction for couples so that it becomes twice the level for single people.
It would gradually increase the standard deduction for couples, which this year is $7,350, until it is twice the one for single people, currently $4,400.
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