D.C. Tax relief legislation now moving swiftly through Congress will do little to ease the marriage penalty for low-income families, says Laura Wheaton, an Urban Institute researcher who has just completed an analysis of legislative proposals under consideration. Wheaton points out that low-income families are currently being hurt most by the penalty as measured by percentage of income. Her brief offers a simple strategy to take the sting out of the marriage penalty for these families.
Research shows that the decision for the second earner to take a job is sensitive to tax costs.
A tax-cut plan passed by the House Ways and Means Committee on September 17 contains provisions to address the marriage penalty. The Urban Institute is a nonprofit, nonpartisan policy research organization established in Washington, D.C., in 1968. Its objectives are to sharpen thinking about efforts to solve society's problems, improve government decisions and their implementation, and increase citizens' awareness about important public choices. How to contact the Urban Institute. How to order Urban Institute Publications.