Recent Developments in the Marriage Tax / Daniel R. Feenberg, Harvey S. Rosen.

Format:

Book

Author/Creator:

Feenberg, Daniel R.

Contributor:

National Bureau of Economic Research.

Rosen, Harvey S.

Series:

Working Paper Series (National Bureau of Economic Research) no. w4705.

NBER working paper series no. w4705

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1994.

Summary:

The new tax law increases tax rates of high income individuals, and expands the earned income tax credit for low income individuals. We use a sample of actual tax returns to compute estimates of the 'marriage tax' - the change in couples joint tax upon marriage - under this new law. We predict that in 1994 52 percent of American couples will pay a marriage tax, with an average of about $1,244; 38 percent will receive a subsidy averaging about $1,399. These aggregate figures mask a considerable amount of dispersion in the population. Under the new law, the marriage tax for certain low-income families can exceed $3,000 annually; for certain very high income families it can exceed $10,000 annually.

Notes:

Print version record

April 1994.