Monday, September 20, 2021
House Democrats unveiled a tax package this week that would raise $2.1 trillion over a decade from the wealthy and corporations. Couples who file a joint tax return experience a marriage penalty if their income-tax bill is larger than the one they’d get filing as single taxpayers.
The tax plan would increase the existing marriage penalty for wealthy couples, according to financial advisors. The proposal would raise the top income-tax rate to 39.6% from 37%. A single filer with more than $400,000 of income in 2022 would pay that rate. However, the $450,000 income threshold for married couples filing a joint return isn’t much higher.
If successful, the legislation may change how high-income couples file their taxes.
Read more here.