Why is there a marriage tax penalty for married couples where the individuals each make roughly the same amount?
Below an individual income of $69,675 or a combined income twice this ($139,350), it is assumed married persons are both contributing in some way to the household income, regardless of whose name is on the paycheck(s), so the same tax rates apply to marrieds filing separately and to married couples making a combined income twice as large. This encourages families to keep one member at home providing child care or elder care or to support one member through school or launching a business to benefit the entire family. Marrieds with a combined income greater than $139,350 pay a bit more than singles on the additional income, acknowledging the advantages of marriage (married folks accumulate a lot more wealth than single folks), while still allowing them to average the income between the two of them.
