Thursday, December 24, 2020

An Easy, Obvious Fix In the Tax Code

The solution is to take a cue from the tax code, which allows married couples filing jointly to earn more before a higher rate kicks in, accounting for the fact that both adults can be breadwinners. Congress removed marriage penalties for highly paid professionals long ago, and it is past time to give this basic consideration to working-class Americans.

Child care assistance — inherently pro-work, but with the largest marriage penalties due to the high cost of childcare — is the perfect candidate for reform. Moreover, state lawmakers have significant discretion over the program and can enact desperately needed reforms. First, increase the program-eligibility threshold of family income for working-class married couples to account for the reality that two adults will earn more than one adult. Then, phase out the benefit slowly to reduce the financial hit to recipients as they earn more or get married.

https://www.realclearpolitics.com/articles/2020/12/16/a_simple_policy_fix_to_encourage_two-parent_homes.html

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