Tuesday, November 7, 2017
From Business Insider:
The Republican tax plan hasn't met the expectations of advocates for "family-friendly" tax reform. Its child-credit provision is disappointingly small, in the eyes of Sen. Marco Rubio, and it abolishes the adoption tax credit altogether.
But there is one provision that could be construed as "pro-family": a tax penalty for divorce.
The tax bill released Thursday would change the tax treatment of alimony. Currently, alimony is tax-deductible for the paying spouse and taxable to the receiving spouse. But if you get divorced after the plan is enacted, that would change: Alimony would be paid out of after-tax dollars and would be tax-free to the recipient.
This change would tend to increase the total amount of tax paid by divorced couples, since the ex-spouse who pays alimony is typically the one with the higher income and who faces a higher tax bracket.
Read more here.
Hat Tip: CR