Bloomberg Tax: The Unfairness of the Marriage Tax Penalty (March 31, 2021)

Patricia Cain, of Bloomberg Tax, has recently made available her article that discusses the history of the marriage tax penalty and the need to eliminate joint tax returns. Her article, “The Unfairness of the Marriage Tax Penalty,” begins as follows:

Wisconsin Republican U.S. Representative Glenn Grothman recently criticized the Covid-19 relief bill by pointing to the marriage penalty that is embedded in the earned income tax credit, the EITC. He then inexplicably used the penalty in the Democratic-backed bill to take a swipe at the Black Lives Matter movement, claiming they did not honor the traditional married family. Representative Grothman is just wrong about the BLM point. The group seeks to value all families, and there are many in all of our communities that do not fit the traditional married family model. On the other hand Representative Grothman is absolutely correct about the problem of the marriage penalty in our tax code.

Still, it doesn’t seem fair to lay the blame at the feet of the Democrats or attribute the problem to the Covid-19 relief bill, as though that is the law that created the problem. The marriage penalty has been lurking throughout the Internal Revenue Code for some time. Both Democrat and Republican administrations have contributed to the problem. Both parties have, at times, taken a stab at reducing the problem. But so far no one has succeeded.

To view the full article, click here: “The Unfairness of the Marriage Tax Penalty”

Posted by Elise Kim, Managing Associate Editor, Wealth Strategies Journal.

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