Donate

Tax Man Wants You to Choose Between Marriage and Career – Part 1

February 3, 2010 | NeW Staff

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 McCaffery assesses the current cultural climate and concludes that some tax policies affecting women are out-of-date and are having particularly negative affects.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,

“Today 70 percent of all married women work for wages … yet the tax laws are biased toward single-earner households in which only one spouse works and is biased against two-earner households.”


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,

“Moreover, even if her husband has paid the maximum Social Security tax, the wife who works must begin paying from the first dollar she earns.”


This phenomenon has been dubbed the “marriage penalty” and affects the top and bottom levels of income.  What are these affects?

“If you are middle- to upper-income and married, the incentive is to not work. If you are low-income and working, the incentive is to not marry.”


Keep an eye out for Part 2, dealing with Social Security!

»
Latest News

NeW Spotlight: Bridget Schoffman, Florida Gulf Coast University

NeW Spotlight: Bridget Schoffman, Florida Gulf Coast University (FGCU) What is your major at FGCU? Finance What would you like to do after graduation? After graduation, I plan on working towards an MBA. This may be immediate or after a few years of work experience. I want to pursue a career in corporate finance.

Read more

Report From the 2017 #ShesConservative Summit

Allie, Jessica, and I rose around 4 a.m. and packed the car to make the four hour trip from Charleston to Raleigh. Though it was an early morning, we drove with enthusiasm in our hearts and hot coffee in our hands as we watched the sunrise. We were ready to attend NeW’s first ever...

Read more

Get the latest gear from the NeW store!

Shop Now