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In the US, two moderate incomes see a similar federal tax bill to a single person, with things actually getting worse at higher incomes for the married couple.
by alex43578 10mo ago
In the US, two moderate incomes see a similar federal tax bill to a single person, with things actually getting worse at higher incomes for the married couple. Is the UK tax code really that different?
- khuey 10mo agoHuh? In the US the married filing jointly tax brackets are exactly double the single tax brackets for every rate except the top 37% rate. A single person making 100k definitely pays a lot more in tax than than a married couple making 100k together. It's generally advantageous to be married filing jointly unless you're at the absolute top 37% rate, at the very bottom (where means tested benefits phase out), or both spouses make roughly equal incomes (in which case MFJ vs two single filers works out around the same).
- alex43578 10mo agoHuh? In your $100K scenario, that single person pays about $6K more in taxes, but has $36K more in take home pay per person, so that additional tax bill seems reasonable in light of their ability to pay it and pay for their cost of living.
- willmarch 9mo agoYou’re moving the goalposts. The point is the tax bill, not “ability to pay per person.” On 100k total, MFJ owes thousands less in federal income tax than a single filer at 100k because the standard deduction and brackets are basically doubled. That’s exactly why marriage is usually a bonus at moderate incomes. The “marriage penalty” shows up mainly when both spouses have high, similar incomes/phaseouts, not in the $100k total case.