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Explaining the Fall and Rise in the Tax Cost of Marriage: The Effect of Tax Laws and Demographic Trends, 1984-97

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  • Eissa, Nada
  • Hoynes, Hilary Williamson

Abstract

This paper documents changes in the tax consequence of marriage over the period 1984 to 1997. Reversing the impact of the 1986 Tax Reform Act, tax acts in 1990 and 1993 are found to increasingly tax marriage. Our decomposition of different components show that, altogether, tax laws explain most (55-60 percent) of the change in the tax cost of marriage between 1984 and 1997. Our decompositions also show that the non-tax changes are almost exclusively driven by the changing labor market attachment of married women (as measured by their share of family earnings) and not by family size or total family income.

Suggested Citation

  • Eissa, Nada & Hoynes, Hilary Williamson, 2000. "Explaining the Fall and Rise in the Tax Cost of Marriage: The Effect of Tax Laws and Demographic Trends, 1984-97," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(3), pages 683-712, September.
    • Handle: RePEc:ntj:journl:v:53:y:2000:i:3:p:683-712
    DOI: 10.17310/ntj.2000.3S.04
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    References listed on IDEAS

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    1. Janet Holtzblatt & Robert Rebelein, 2000. "Measuring the Effect of the EITC on Marriage Penalties and Bonuses," JCPR Working Papers 127, Northwestern University/University of Chicago Joint Center for Poverty Research.
    2. Alm, James & Whittington, Leslie A., 1995. "Does the Income Tax Affect Marital Decisions?," National Tax Journal, National Tax Association, vol. 48(4), pages 565-72, December.
    3. Alm, James & Whittington, Leslie A., 1995. "Does the Income Tax Affect Marital Decisions?," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(4), pages 565-572, December.
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    Cited by:

    1. Kasey Buckles & Melanie Guldi & Joseph Price, 2011. "Changing the Price of Marriage: Evidence from Blood Test Requirements," Journal of Human Resources, University of Wisconsin Press, vol. 46(3), pages 539-567.
    2. Sharon Sassler & Soma Roy & Elizabeth Stasny, 2014. "Men’s economic status and marital transitions of fragile families," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 30(3), pages 71-110.
    3. Alexandre Baclet & Fabien Dell & Viktor Steiner & Katharina Wrohlich, 2005. "Verteilungseffekte der staatlichen Familienförderung: ein empirischer Vergleich zwischen Deutschland und Frankreich ; Kurzexpertise ; Forschungsprojekt im Auftrag der Hans-Böckler-Stiftung, Forschungs," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 9, number pbk9, Enero-Abr.
    4. Eissa, Nada & Hoynes, Hilary, 2011. "Redistribution and Tax Expenditures: The Earned Income Tax Credit," National Tax Journal, National Tax Association;National Tax Journal, vol. 64(2), pages 689-729, June.
    5. James Alm & J. Sebastian Leguizamon, 2015. "Whither the Marriage Tax?," National Tax Journal, National Tax Association;National Tax Journal, vol. 68(2), pages 251-280, June.
    6. Jonathan Meer & Joshua Witter, 2022. "Effects of the Earned Income Tax Credit for Childless Adults: A Regression Discontinuity Approach," NBER Chapters, in: Tax Policy and the Economy, Volume 37, pages 175-198, National Bureau of Economic Research, Inc.
    7. Stevenson, Adam, 2012. "The Labor Supply and Tax Revenue Consequences of Federal Same-Sex Marriage Legalization," National Tax Journal, National Tax Association;National Tax Journal, vol. 65(4), pages 783-806, December.
    8. Janet Holtzblatt & Swati Joshi & Nora Cahill & William Gale, 2023. "Racial Disparities in the Income Tax Treatment of Marriage," NBER Chapters, in: Tax Policy and the Economy, Volume 38, National Bureau of Economic Research, Inc.
    9. James Alm & J. Sebastian Leguizamon & Susane Leguizamon, 2023. "Race, Ethnicity, and Taxation of the Family: The Many Shades of the Marriage Penalty/Bonus," National Tax Journal, University of Chicago Press, vol. 76(3), pages 525-560.
    10. Callan, Tim & Keeney, Mary J. & Nolan, Brian & Walsh, John R., 2001. "Reforming Tax and Welfare," Research Series, Economic and Social Research Institute (ESRI), number PRS42, June.

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