The negative effect of the marriage Penalty tax on american society
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This study is an extension of prior research that quantifies the magnitude of the marriage penalty tax (MPT) and measures the distributional effects on the U.S. population in general. We use the Internal Revenue Service's Statistics of Income (SOI) data and the Census Bureau's year Current Population Survey (CPS) database. Estimates of the MPT are computed based on the effects of the most recent tax act to all taxpayers according to class of income. The study examines distribution of the MPT and projects effects of current tax law affecting MPT, the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA). Results of this study indicate that after passage of JGTRRA the marriage penalty tax was reduced, but it continues to negatively impact many married persons in American society. To make matters worse, reductions in MPT will 'sunset' or expire after 2010, unless Congress votes to extend provisions of JGTRRA. The marriage penalty tax has important negative implications for the social welfare of the nation. Numerous studies on family structure, controlling for variables such as race, education and income level, indicate that children raised in married two-parent families have better outcomes on average than children raised in other settings. The MPT is anti-marriage and anti- family; as a result, the MPT is detrimental to children and society. Families are the foundation for civilization; when families fail, civilization breaks down. Given its negative social consequences, the MPT should be eliminated.
