engleski

The Effect of EGTRRA on Marriage Tax Penalties and Bonuses

This article analyzes the effect of EGTRRA on marriage tax penalties and bonuses. The analysis suggests that EGTRRA eliminates marriage tax penalties for many childless two-earner married couples. However, EGTRRA generally reduces these penalties only partialy for two-earner couples with children because it adresses just a few of the many federal income tax components that contribute to them. One-earner couples typically have larger marriage tax bonuses after EGTRRA. In some situations, there are increased penalties or decreased bounuses, and this is often due to the alternative minimum tax. According to Hulse, one objective of EGTRRA was to mitigate marriage tax penalties, but the results here suggest only modest success in achieving it.

marriage tax penalties; marriage tax bonuses; EGTRRA

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