Marriage Tax Penalties: Legislative Proposals in the 106th Congress

Publication Date: July 2000

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

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Abstract:

Eliminating marriage tax penalties and creating a marriage neutral income tax is an elusive equity goal. Many legislative proposals have been advanced to solve this problem. However, marriage neutrality conflicts with two other concepts of equity: progressivity and equal taxation of couples with equal incomes. Regardless of how these three concepts of equity are juggled, an income tax cannot simultaneously achieve all three equity goals. This report will be updated as legislative action warrants. For detailed background information on the causes of marriage tax penalties, conflicting equity goals and historical tax treatment of marital status see CRS Report 97-109, The Federal Income Tax and Marriage Neutrality, by Gregg A. Esenwein.