Measuring the Effect of the EITC on Marriage Penalties and Bonuses
Government of the United States of America - Department of the Treasury
Vassar College - Department of Economics
November 24, 1999
National Tax Journal, Vol. 53, No. 4, December, 2000
In 2000, the EITC will increase marriage penalties by at least $3.1 billion (10.4 percent) and reduce marriage bonuses by $439 million (1.5 percent). Over half of EITC-related marriage penalties will be attributable to couples who currently re ineligible for the EITC because their income is above $30,000. However, estimates of marriage penalties and bonuses are very sensitive to assumptions regarding a couple's living arrangements and custody agreements if they do not file joint returns. Recent proposals to provide marriage penalty relief through the EITC are well-targeted to lower-income taxpayers but vary in their ability to reduce marriage penalties.
Number of Pages in PDF File: 28Accepted Paper Series
Date posted: March 19, 2001
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