I'm so torn

[XDinNC]

Marriage Penalty Relief.
H.R. 6 would eliminate the bias in the standard deduction against married couples by increasing the standard deduction for married couples to twice that of single taxpayers. Currently, two single unmarried workers who live together can each claim the standard deduction of $9,100 in 2001, while a married couple is allowed a standard deduction of $7,600.


H.R. 6 addresses the inequities in the marginal tax rate structure of the current income tax code by doubling the 15 percent rate bracket of joint filers to twice that of single filers. For 2001, the threshold of the 28 percent bracket is $45,200. H.R. 6 would increase this threshold to $54,100, saving married couples almost $1,200 in taxes.


Of course, if your taxes are anything like mine you won't notice the "relief".

[FrankRizzoXD40]

Originally Posted by wombat13

Actually it's generally the opposite. I'd have to take a look to see if it was finally changed, but historically the tax deduction for a married couple has been less than the deductions for two individuals. That's what people have called the "marriage penalty" in the income tax code.

The charitable interpretation of what gays are after with the push for gay marriage are inheritance rights, health care coverage under employers' family benefits provisions, etc. The not-so-charitable view is that it is just another part of the liberal agenda to radically transform society and undermine traditional institutions.

Some of Bush's new tax laws eliminated some of the marriage penalty. However, it still exists to a certain extent amongst high-income earners.

Frank

[wombat13]

Originally Posted by XDinNC

Marriage Penalty Relief.
H.R. 6 would eliminate the bias in the standard deduction against married couples by increasing the standard deduction for married couples to twice that of single taxpayers. Currently, two single unmarried workers who live together can each claim the standard deduction of $9,100 in 2001, while a married couple is allowed a standard deduction of $7,600.


H.R. 6 addresses the inequities in the marginal tax rate structure of the current income tax code by doubling the 15 percent rate bracket of joint filers to twice that of single filers. For 2001, the threshold of the 28 percent bracket is $45,200. H.R. 6 would increase this threshold to $54,100, saving married couples almost $1,200 in taxes.


Of course, if your taxes are anything like mine you won't notice the "relief".

Exactly. I get reamed so hard by the AMT that until they get rid of that, no other changes really help me.

[FrankRizzoXD40]

This is what I was referring to when I said that Bush had made some changes:

2003 Tax Law Changes

In 2003, through the the Jobs and Growth Tax Relief Reconciliation Act of 2003, one of the changes to the tax law was to reduce the impact of the "marriage penalty" on married couples who choose to file jointly on their income taxes. This was done by equalizing the standard deduction for singles and married couples and increasing the endpoint of the 15 percent tax bracket for married couples filing jointly.
The marriage penalty still exists for couples in tax brackets above 15 percent.

There may be some other changes as well that happened after 2003.

Here is what we have in store (pending any other legislative changes)

Future of the Marriage Penalty

Married couples felt the relief in 2003 and 2004. However, if in 2005, Congress doesn't renew the changes, the marriage penalty will be reinstated for a few years. Here are the rates:

2005 180 percent of 15 % bracket for singles
2006 187 percent of 15 % bracket for singles
2007 193 percent of 15 % bracket for singles
2008 200 percent of 15 % bracket for singles
2010, a sunset provision kicks in and the marriage penalty once again will be in effect.

According to the Tax Foundation's Individual Income Tax Model, 30 million married couples will see an average tax increase of $369 in 2005 if lawmakers fail to extend the marriage penalty relief.

http://marriage.about.com/od/finance...agepenalty.htm

Frank

[XDinNC]

Originally Posted by wombat13

Exactly. I get reamed so hard by the AMT that until they get rid of that, no other changes really help me.

+1

[TeflonKid]

The tax penalties on marriage are the number one reason I'm not married to my girlfriend of 4 years. We have two children together and are together for life, but we can't afford the taxes if we marry lol. We file seperate head of household and each claim one of the kids.