Download or read book The Marriage Tax Penalty written by Jane Gravelle and published by Nova Publishers. This book was released on 2003 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is an overview of issues associated with the marriage penalty. The first section explains how the marriage penalty (and the marriage bonus) arises and why it is not possible to achieve simultaneously the goals of marriage neutrality and horizontal equity across families in a progressive tax system. The second section discusses the size of the marriage penalty, the bonus and importantly, the notion that the marriage penalty is not a precisely defined measure. The next section outlines the issues of equity, efficiency and simplicity that are part of the frame work for evaluating policy and the final section discusses various legislative proposals in light of these objectives. The book also estimates the effects of current tax policies on families of different types and sizes and analyses proposals to address the marriage penalty and the child tax credit. It contains a history of the development of tax provisions affecting the family.
Download or read book The Federal Government s War on Marriage AKA the Marriage Penalty Tax written by Floyd Carpenter and published by . This book was released on 2014 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Empirical research has shown that public policy such as tax and transfer programs have had a deleterious effect on marital stability. This study analyzes the cost to individuals of various aspects of the marriage penalty tax (MPT) and thereby how it discourages marriage and how it harms both individuals and society at large. Decline of the family, especially married couples, is regarded as one of the critical problems facing American society. Past research indicates that the MPT, due to its negative impact on marital stability and two-parent families, results in major social and economic costs, such as higher rates of children living in poverty, lower education, higher unemployment, more crime, and poorer health. Given its harm, we conclude that the MPT should be eliminated from the tax code. Opponents to repealing the marriage penalty have complained that 'higher-income' taxpayers receive disproportionate benefit. However, this research shows that the MPT has an equally negative effect on couples in the lowest income categories, particularly with its impact on the earned income tax credit. Further, regardless of a couple's income level, the marriage penalty is detrimental to marriage, and thus, to society overall. Tax laws, as part of public policy, should foster, not hamper, two-parent families and their corresponding economic benefits such as improved employment, better public health, and lower crime.
Download or read book Californians and the Marriage Penalty written by Mark A. Ibele and published by . This book was released on 1999 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Marriage Penalty and Family Tax Relief Act of 2001 written by United States. Congress. House. Committee on Ways and Means and published by . This book was released on 2001 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Taxes and Transfers written by Stacy Dickert-Conlin and published by . This book was released on 1997 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Marriage Penalty Legislation written by and published by . This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: President Bush's tax proposal and H.R. 6 (passed by the House) have different approaches to the marriage penalty. The Administration proposal, in addition to rate changes, has a second-earner deduction for 10% of income (up to $30,000) earned by the lower earning spouse. H.R. 6 would increase the standard deduction and width of the 15% rate bracket for joint returns to twice the size of singles, eliminating the penalties for taxpayers in the 15% and 28% brackets but adding to any marriage bonuses. This report compares these alternative proposals. (H.R. 1836, signed by the President on June 7, includes these latter proposals along with rate cuts). Taxes can go up or down as a result of marriage, depending on the income of the two spouses. These penalties and bonuses arise from the progressive tax structure and the decision to impose taxes on a household basis. For much of the middle class, marriage penalties are low. For couples without children, the maximum marriage penalty at 2001 income levels for the 60% of taxable returns subject to the 15% marginal rate in 1997 is $225; most couples that itemize have no penalty at all. The second-earner deduction in the administration proposal virtually eliminates the marriage penalty for these couples. Even in the 28% rate, which covers another 26% of taxable returns, the second earner deduction along with the flatter rates results in no or negligible penalties. Overall, these taxpayers account for the middle 75% of joint returns. Taxpayers with children could have small remaining penalties, depending on how penalties are defined. Most of those in the 15% bracket who might have still have penalties that are significant relative to income are removed from the tax roles entirely through the additional child credits. Lower income couples may incur penalties through the Earned Income Credit (EIC) under either proposal, although it is difficult to address EIC marriage penalties and bonuses. The 12% of taxpayers in higher brackets may have remaining penalties. A large fraction of these returns do not have large penalties because their marginal tax rate is the flat capital gains tax rate. Any penalties are substantially reduced or eliminated, however, due to the lower rate structure in the Administration proposal. The important difference between H.R. 6 and the Administration proposal is that H.R. 6 expands marriage bonuses in most cases while the Administration proposal generally reduces them due to flatter tax rates. H.R. 6 combined with rate cuts would increase bonuses in comparison to the Administration proposal and, in many cases, in comparison to current law. Measurement of the marriage penalty for couples depends on the allocation of children for tax purposes. When married couples are compared with cohabitating singles, where issues of incentives and fairness suggest attention be focused, cohabitating singles are less likely to have children and when they do, have low incomes unlikely to be subject to regular income tax. Thus, the issues of measuring the marriage penalty for families may be relatively unimportant. This report will be updated to reflect legislative developments.
Download or read book The Marriage Penalty written by Bruce Bartlett and published by . This book was released on 1998-02-01 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Marriage Penalty Tax written by United States. Congress. Senate. Committee on Finance. Subcommittee on Taxation and Debt Management Generally and published by . This book was released on 1980 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Marriage Tax Penalty Relief Act of 2000 written by United States. Congress. House. Committee on Ways and Means and published by . This book was released on 2000 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Marriage Penalty After the Jgtrra written by Karen Bybee Friske and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The marriage penalty has been the subject of much public discussion and many bills introduced in Congress. The changing demographics of the American population have intensified the importance of this issue and led to many small, quick fixes in the tax law. The most recent attempt to alleviate the marriage penalty is found in the Jobs and Growth Tax Relief Reconciliation Act of 2003 (2003 Act). The authors of this article present examples to illustrate the effects of the marriage penalty and marriage penalty reform in various situations. The marriage penalty due to tax rates still exists for couples with high income. However, there is a marriage bonus when one spouse provides all of the income. The 2003 Act did not change the head of household tax rates. Consequently, there is a divorce bonus when the couple has children that continue to live with one or more of the former spouses, or if there is any situation where one or both of the former spouses can file as a head of household after the divorce. There are still many provisions in the tax law causing a marriage penalty. Another example is the amount of social security included in gross income. When coupled with the differences in the additional standard deduction, many older taxpayers are still suffering a marriage penalty. Although the marriage penalty relief provided by the 2003 Act is short-term, the authors identify several planning opportunities to make the most of its benefits.
Download or read book Tax Reductions Tax Changes and the Marriage Penalty written by James Alm and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Policymakers have directed much effort towards reducing or eliminating the so-called "marriage penalty" present in the U.S. individual income tax. However, because the marriage penalty is frequently misunderstood, many suggested remedies do little to reduce the penalty, and in some cases even exacerbate it. In this paper we use the recent income tax reduction proposal of the Bush Administration to highlight some of the challenges involved in reducing the marriage penalty. Using representative couples with varying distributions of income and family structure, we contrast the marriage penalties under current tax law (as of May 2001) with those under the tax structure in the Administration's proposal. Our calculations indicate that it is certainly feasible to reduce the marriage penalty. However, our calculations also indicate that achieving this goal can be a difficult task, with tax reductions and other tax changes sometimes having unintended and unanticipated effects. In particular, the Bush tax plan does not eliminate the marriage tax, and in some cases actually makes the marriage penalty even larger than it is at present. In short, reducing marriage penalties is not as simple as reducing income taxes.
Download or read book The Marriage Penalty and Other Family Tax Issues written by Jane Gravelle and published by . This book was released on 1998 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Marriage Penalty and Other Family Tax Issues written by Jane Gravelle and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Marriage Penalty written by United States. Congress. Joint Economic Committee and published by . This book was released on 1997 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Marriage Tax Penalty written by Jane Gravelle and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Who Pays the Marriage Penalty written by William W. Beach and published by . This book was released on 2000 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Negative Effect of the Marriage Penalty Tax on American Society written by Frederick J. Feucht and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study is an extension of prior research that quantifies the magnitude of the marriage penalty tax (MPT) and measures the distributional effects on the U.S. population in general. We use the Internal Revenue Service's Statistics of Income (SOI) data and the Census Bureau's year Current Population Survey (CPS) database. Estimates of the MPT are computed based on the effects of the most recent tax act to all taxpayers according to class of income. The study examines distribution of the MPT and projects effects of current tax law affecting MPT, the Jobs and Growth Tax Relief Reconciliation Act of 2003. Enactment of this tax law was partly motivated by President Bush's assessment that the tax code frequently taxes couples more after marriage and the MPT contradicts not only basic values but any reasonable sense of fairness. However, even after the passage of the act, results of this study indicate that while the marriage penalty tax is reduced, it continues to negatively impact American society. This, in turn, may have important implications for the social welfare of the nation. To make matters worse, current reductions in MPT will 'sunset' or expire after 2010, unless Congress votes to extend provisions of JGTRRA (aka Bush Tax Cuts).
