Abstract
Tax policy discussions of how to tax married couples, as compared to singles, often focus on the by now much-criticized norms of “marriage neutrality” and “couples neutrality.” While these norms are largely unpersuasive, they do offer a useful analytic starting point, because of both (a) how they relate to more validly expressed concerns, and (b) the significance of the empirical reasons why they generally do not hold.
In evaluating the proper relative tax treatment of different married couples, one of the most important factors that the federal income tax law fails to recognize is the difference between one-earner and two-earner couples. If a one-earner couple is earning the same amount as a twoearner couple, it is clearly materially better-off, and thus should pay higher taxes. The tax law briefly recognized this in the 1980s, through a two-earner deduction that there has been recent talk of reviving. However, while the basic idea of a two-earner deduction has merit, the historical design was suboptimal and requires further thought.
Recommended Citation
Daniel Shaviro,
Couples Neutrality, Marriage Neutrality, and Two-Earner Deductions,
58 Loy. L.A. L. Rev. 967
().
Available at: https://digitalcommons.lmu.edu/llr/vol58/iss4/5
