Thursday, June 27, 2013

The Weird Marriage and Taxes Thing

Good rulings by SCOTUS on gay marriage bills brings up tax issues again.  I understand the desire to modify taxes based on single/married mostly for political purposes, but in the end I really don't think it makes sense.

We should have only one category--the equivalent of single--and everyone would file.  So if a married couple only has one working person, the other person could file a return with zero income.  Yes, this would mean that a rich couple with one person pulling in a couple million $ could have the other spouse collecting a few thousand in tax rebates, and they may pay less than now, but that couple would be paying more than a couple with both people working and each bringing in half (same total income).  So long as the change is paired with rate increases I have no problem with this.  (Note: as an alternative wealthy couples could probably reduce tax burden by having the working spouse "pay" the non-working spouse some fraction of their income.)


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