How so? The tax code discourages work, discourages marriage, and encourages women not to advance. That's according to Diana Furchtgott-Roth, Director of Economics21 at the Manhattan Institute, in a MarketWatch article.
Fact #1: When single working women marry, their tax rates increase. As a result, this policy discourages marriage or encourages women who do marry to quit the workforce. Why? If a couple, each earning $25k gets married, they will take home less than 30% of the second earner's paycheck. It's called the "marriage penalty."
Fact #2: Working women are disproportionately in the top 20% of the income distribution. In 2012:
- 78% of households in the top 20% of the income distribution were married couples, 5% were women living alone.
- In the top 5% of households, 81% were married couples, and 4% were women living alone.
- In the bottom 20% of the income distribution, 17% of households were married couples and 36% were women living alone.
What would help working women is a deduction for second wage earners. This policy was in the U.S. tax code between 1981 and 1986, during President Ronald W. Reagan's first term. Furchtgott-Roth argues this deduction could yield significant economic activity by drawing more women into the workforce.
That would provide women some real hopium and changium, wouldn't it?
Let the discussion begin...
To read Diana Furchtgott-Roth's article in MarketWatch, click on the following link:
"It's Women Who Suffer Most from the Marriage Penalty."