Measuring the Effect of the EITC on Marriage Penalties and Bonuses

28 Pages Posted: 19 Mar 2001

See all articles by Janet Holtzblatt

Janet Holtzblatt

Government of the United States of America - Department of the Treasury

Robert Rebelein

Vassar College - Department of Economics

Date Written: November 24, 1999

Abstract

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.

Suggested Citation

Holtzblatt, Janet and Rebelein, Robert, Measuring the Effect of the EITC on Marriage Penalties and Bonuses (November 24, 1999). Available at SSRN: https://ssrn.com/abstract=251673 or http://dx.doi.org/10.2139/ssrn.251673

Janet Holtzblatt (Contact Author)

Government of the United States of America - Department of the Treasury ( email )

1500 Pennsylvania Avenue, NW
Washington, DC 20220
United States
(202) 622-1327 (Phone)
(202) 622-0236 (Fax)

Robert Rebelein

Vassar College - Department of Economics ( email )

124 Raymond Avenue
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Poughkeepsie, NY 12604
United States
845-437-7395 (Phone)

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