H.R.3285 - Student Loan Marriage Penalty Elimination Act of 2025 (119th Congress)
Summary
H.R.3285, the Student Loan Marriage Penalty Elimination Act of 2025, aims to amend the Internal Revenue Code of 1986. The bill seeks to allow married couples to individually apply the student loan interest deduction limitation, effectively removing the 'marriage penalty' associated with this deduction. This would allow each spouse to deduct up to $2,500 in student loan interest, regardless of their combined income.
Expected Effects
The primary effect of this bill would be to provide tax relief to married couples who are burdened by student loan debt. By allowing each spouse to deduct up to $2,500 in student loan interest, the bill could reduce their overall tax liability. The change would apply to taxable years beginning after December 31, 2024.
Potential Benefits
- Provides tax relief to married couples with student loan debt.
- Simplifies the tax filing process for married couples regarding student loan interest deductions.
- Potentially incentivizes marriage by removing a financial disincentive.
- Increases disposable income for affected families, which could stimulate economic activity.
- Addresses a perceived unfairness in the tax code.
Potential Disadvantages
- May disproportionately benefit higher-income earners who have larger student loan debts.
- Could slightly reduce overall tax revenue, potentially impacting government programs.
- Adds complexity to the tax code by creating a specific rule for married couples.
- May not significantly impact those with very low incomes or those already maximizing other deductions.
- The benefit is capped at $2,500 per spouse, which may not fully address the burden of student loan debt for some.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to provide financial relief to a specific group of citizens. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. This bill falls under Congress's power to modify the tax code to promote the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).