Taxing Family Income: The Effects on Marriage and How Time and Resources are Shared Within Households
A key question in designing an effective taxation system is whether to tax people individually or jointly within households. In some countries, such as the UK, income tax is based purely on people’s own personal income, regardless of whether they are single or married. In contrast, some countries, such as the United States, tax individuals based on total family income: for a married couple, this means that both spouses are necessarily subject to the same marginal tax rate.