Updates from CHICAGO BOOTH

Why countries should tax couples as individuals
By Vanessa Sumo – When low-earning people tend to marry each other, a policy that links their incomes and tax rates becomes expensive because it results in a high level of government subsidies.

When one low earner loses some income, the spouse faces a higher tax rate and a disincentive to work.

That combination makes the partners poorer and may make them eligible for a higher level of government subsidies, creating an additional cost for taxpayers. more> http://tinyurl.com/qeuxz9r



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