Working Paper: NBER ID: w0872
Authors: Daniel Feenberg
Abstract: Currently U.S. Federal Income Tax schedules do not maintain marriage neutrality, that is, tax liabilities depend upon marital status. This paper shows the extent and distribution of the departure from neutrality both under current law and the new (1981) tax act. The new tax law establishes a secondary earner's deduction of 10% of secondary earner's wages (up to 3U00 dollars). The child-care credit is also liberalized. Analyses of the revenue, welfare and labor supply effects of these provisions are also given.
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Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| 1981 tax law changes (K34) | marriage neutrality (J12) |
| 1981 tax law changes (K34) | tax liabilities (H26) |
| secondary earners deduction (H31) | marriage penalty (J12) |
| liberalization of childcare credit (J13) | marriage penalty (J12) |
| income distribution between spouses (D31) | marriage tax (H31) |
| tax law changes (K34) | labor supply and welfare (J20) |