Wednesday, January 2, 2013

The Marriage Penalty is Back -- Except for Same Sex Couples

With the fiscal cliff deal, the Marriage Penalty is back in a big way.  Two single people living together earning $400,000 each are subject to a top rate of 35% on the combined $800,000 of income.  Two married people earning $400,000 each are subject to a top rate of 35% on the first $450,000 of income and a 39.6% rate on the next $350,000 of income.  Cost of that marriage certificate?  $16,100.

If Congress is really in favor of encouraging the "defense of marriage", shouldn't they be more worried about penalizing people for getting married than they are about preventing loving same sex couples from getting married?

Side note:  This tax structure is a bonus for the stay-at-home spouse.  Marrying a spouse with a job brings a tax penalty; marrying a spouse who stays at home brings a tax bonus.

As much as I think the "Defense of Marriage Act" is wrong, it does defend same-sex marriage in a way that opposite-sex marriage is not defended:  A same sex couple married yesterday in Maryland and earning $400,000 each pays $16,100 LESS in tax than an opposite couple married yesterday in Maryland -- because federal law does not recognize same sex marriage.  So they get all of the benefits of marriage under state law without paying the substantial penalty for being married under federal tax law.  Not a result the authors of DOMA intended, but perhaps an accidental reparations  for the discrimination DOMA brings in other areas.

1 comment:

72y8w4cwf9 said...

The Tennessee state legislature accredited a sports betting bill within the spring of 2019 that will solely permit betting on-line and on cellular apps. The state started permitting cellular 온라인카지노 sports betting on Nov. 1, 2021. Betting on collegiate recreation outcomes is allowed, however player prop bets in collegiate games are prohibited. New Jersey long advocated for legalized sports gambling and was responsible for the case that led to the federal reversal from the Supreme Court. As such, they wasted no time in legalizing sports gambling after the decision, opening the state's first sportsbooks on June 14, 2018. Atlantic City and the MetLife Stadium, amongst different areas, now supply legalized sports wagering.