BS Law Exam I Q 1 - to admit that two cannot live as...

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James Tilley BAA 3210 BS Law Exam I, Q1 The marriage penalty tax stems primarily from two sources: For a majority of couples making up to around $60,000 annually. The main issue is that the standard deduction for a couple is less than the standard deduction for two unmarried individuals. The difference is $1,400 less for childless couples and $3,400 for couples with children. For higher income couples who typically itemize, the cause is mainly the differing rate schedules for singles and married. This can impose higher taxes on a married person's share of the family income than would apply if the couple were living without the benefit of legal matrimony. The marriage tax is a problem only for couples with two incomes. Every taxable married couple could cut its tax liability significantly by obtaining a divorce with a separation agreement to split evenly the ex-partners' earnings. Many singles are willing
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Unformatted text preview: to admit that two cannot live as cheaply as one, but they still maintain that economies of scale typically enjoyed by married persons making them better able to pay taxes than are singles. Those married couple needs only one bed, one refrigerator, and one house. Meals for two are cheaper to prepare per person than meals for one. And so on. Of course, this argument presumes that single people live alone, which means that the preferential singles rates should not be available to unmarried couples or singles with roommates-a large percentage, perhaps a majority, or single people. I think a couple's joint income should be taxed the same as if they each were filing as single taxpayers. There is still a bit of increase when they move into higher tax brackets, but the marriage penalty changes would help many couples who would have paid more than their just-dating friends....
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This note was uploaded on 10/24/2011 for the course LAW BB3210 taught by Professor Profsantiago during the Spring '11 term at Columbia Southern University, Orange Beach.

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