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  • Post-Marital Residence: Taxation

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    Darry Blancia
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    - Countries may provide tax advantages for married couples like income averaging which benefits those with disparate incomes but can impose higher total taxes on couples with equal incomes, called a marriage penalty. - Progressive tax systems usually apply higher rates to each individual in two-earner households, another type of marriage penalty. - Conversely, when tax considers income individually rather than as a couple, dual-income couples fare better than single-income couples with similar household incomes.

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    Taxation

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    - Countries may provide tax advantages for married couples like income averaging which benefits those with disparate incomes but can impose higher total taxes on couples with equal incomes, called a marriage penalty. - Progressive tax systems usually apply higher rates to each individual in two-earner households, another type of marriage penalty. - Conversely, when tax considers income individually rather than as a couple, dual-income couples fare better than single-income couples with similar household incomes.

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    14 views1 page

    Post-Marital Residence: Taxation

    Uploaded by

    Darry Blancia
    - Countries may provide tax advantages for married couples like income averaging which benefits those with disparate incomes but can impose higher total taxes on couples with equal incomes, called a marriage penalty. - Progressive tax systems usually apply higher rates to each individual in two-earner households, another type of marriage penalty. - Conversely, when tax considers income individually rather than as a couple, dual-income couples fare better than single-income couples with similar household incomes.

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    Taxation

    In some countries a married person or couple benefits from various taxation advantages not
    available to a single person. For example, spouses may be allowed to average their
    combined incomes. This is advantageous to a married couple with disparate incomes. To
    compensate for this, countries may provide a higher tax bracket for the averaged income of a
    married couple. While income averaging might still benefit a married couple with a stay-at-home
    spouse, such averaging would cause a married couple with roughly equal personal incomes to pay
    more total tax than they would as two single persons. In the United States, this is called the marriage
    penalty.[citation needed]
    When the rates applied by the tax code are not based income averaging, but rather on the sum of
    individuals' incomes, higher rates will usually apply to each individual in a two-earner households in
    a progressive tax systems. This is most often the case with high-income taxpayers and is another
    situation called a marriage penalty.[93]
    Conversely, when progressive tax is levied on the individual with no consideration for the
    partnership, dual-income couples fare much better than single-income couples with similar
    household incomes. The effect can be increased when the welfare system treats the same income
    as a shared income thereby denying welfare access to the non-earning spouse. Such systems apply
    in Australia and Canada, for example. [citation needed]

    Post-marital residence
    In many Western cultures, marriage usually leads to the formation of a new household comprising
    the married couple, with the married couple living together in the same home, often sharing the
    same bed, but in some other cultures this is not the tradition. [94] Among the Minangkabau of West
    Sumatra, residency after marriage is matrilocal, with the husband moving into the household of his
    wife's mother.[95] Residency after marriage can also be patrilocal or avunculocal. In these cases,
    married couples may not form an independent household, but remain part of an extended family
    household.
    Early theories explaining the determinants of postmarital residence [96] connected it with the sexual
    division of labor. However, to date, cross-cultural tests of this hypothesis using worldwide samples
    have failed to find any significant relationship between these two variables. However, Korotayev's
    tests show that the female contribution to subsistence does correlate significantly with matrilocal
    residence in general. However, this correlation is masked by a general polygyny factor.
    Although, in different-sex marriages, an increase in the female contribution to subsistence tends to
    lead to matrilocal residence, it also tends simultaneously to lead to general non-
    sororal polygyny which effectively destroys matrilocality. If this polygyny factor is controlled (e.g.,
    through a multiple regression model), division of labor turns out to be a significant predictor of
    postmarital residence. Thus, Murdock's hypotheses regarding the relationships between the sexual
    division of labor and postmarital residence were basically correct, though [97] the actual relationships
    between those two groups of variables are more complicated than he expected. [98][99]
    There has been a trend toward the neolocal residence in western societies.

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