Leave it to a Democratic administration to penalize marriage.
It’s very simple. If you and your girlfriend are making 200,000 per year, under the Biden plan, you don’t get hit with the extra tax. Get married, and then you’re at the $400K threshold and you start to get taxed.
According to Fox News:
Individuals who earn a lesser amount could be affected if they are part of a couple filing jointly that reports a cumulative income of $400,000 or more. That means some individuals may wind up being hit with the tax hike because they are filing jointly – whereas, if they filed as individually, they would not be above the specified threshold.
“It’s a significant disadvantage to married couples,” Timothy McGrath, managing partner of investment advisory firm Riverpoint Wealth Management, told FOX Business. “It’s another marriage penalty, and this is nothing new in the tax system. [There are] all sorts of tax marriage penalties right now.”
What would make this provision significant, McGrath noted, is that the proposed income threshold has the potential to affect a lot of households.