I came across a study done by Edward J. McCaffery for the National Center for Policy Analysis analyzing “Women and Taxes”. McCaffery assesses the current cultural climate and concludes that some tax policies affecting women are out-of-date and are having particularly negative affects.
How has the way women participate in the economy changed? McCaffery explains,
The code is set up so that when a woman enters the labor market, her earnings are automatically taxed according to her husband’s current tax bracket, rather than beginning at the lowest bracket. The report continues,
This phenomenon has been dubbed the “marriage penalty” and affects the top and bottom levels of income. What are these affects?
Keep an eye out for Part 2, dealing with Social Security!