Marriage penalty


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Marriage penalty

A tax that has the effect of penalizing a married couple because they pay more tax on a joint tax return than they would if they file tax returns individually.

Marriage Penalty

The higher tax rate that some married couples pay when they file jointly for their income taxes. Married couples filing jointly have different tax brackets than single persons; this can work to the advantage of couples with highly disparate income and single income households; however, it can work to the disadvantage of couples with roughly the same income. One refers to this as the marriage penalty. Some married couples file as single person to avoid the marriage penalty.
References in periodicals archive ?
The 15% bracket change is discussed below under marriage penalty relief, as it is not an across-the-board cut.
Finally, Bush's tax cut also repealed inherently unfair taxes such as the marriage penalty tax and the death tax.
No marriage penalty: The MAGI used to determine the contribution limit phaseout range for married taxpayers filing jointly is increased to twice the amounts applicable for single filers, eliminating the marriage penalty aspect.
He said the marriage penalty tax relief bill would "get loosened up and it'll be down on the President's desk," despite hang-ups in the Senate.
His plan would also enable eligible families to save for retirement without being penalized, and it would ease the so-called marriage penalty that affects some couples earning low wages.
Mack ignores the school taxes childless couples and retirees pay and has no comment on the marriage penalty on two-income households.
According to Robert Greenstein, executive director of the Center on Budget and Policy Priorities, "Even though the EITC increases the marriage penalty for people at higher income levels, it greatly reduces it for a welfare mother with a live-in boyfriend who earns $10,000.
Ironically - given Hillary Rodham Clinton's former status as a high-earning married professional - the 1993 tax package contain a whopping marriage penalty for dual-income couples.
580,000 married couples will benefit from the reduced marriage penalty, and nearly 470,000 couples and single parents will see an increase in their child tax credit.
In the individual tax arena, the Economic Growth and Tax Relief Reconciliation Act of 2001 amended the rates and the alternative minimum tax exemption, repealed the personal exemption and itemized deduction phaseouts, changed benefits for children and education and granted marriage penalty relief.
In addition, the tax relief bill phases out the death tax (one of the top job-killers for small businesses and their employees); doubles the child credit to $1,000; increases Educational Savings Accounts; provides some tax deductibility of college tuition and costs; provides relief from the marriage penalty, and provides additional breaks for private- and public-paid private tuition plans and new school construction.
The Senate--in a deal cut between President Clinton and GOP leaders to salvage the faltering tobacco legislation--adopted an amendment to siphon off new, increased federal tobacco taxes to deal with the marriage penalty.