Sponsor
W. Greg Steube
Representative · R-FL
Representative · R-FL
The bill reduces the marriage penalty and simplifies joint filing for married couples but does so at the cost of lower federal revenue and potential fairness and privacy harms for single filers and those who rely on separate filing.
Married couples (especially middle-income households) would pay lower combined federal income tax because joint tax brackets are widened, reducing the 'marriage penalty'.
Taxpayers who file jointly would face simpler tax-rate application through a single adjusted tax table and removal of separate 'married filing separately' adjustments, reducing filing complexity and administrative confusion.
Taxpayers and federal program beneficiaries: the change would reduce federal income tax revenue, which could increase deficits, force cuts to programs, or require offsetting tax increases.
Single filers and lower-income households could face a relatively higher tax burden if the bill reduces progressivity, potentially worsening inequality.
Spouses who currently choose 'married filing separately' for liability, privacy, or to claim specialized deductions could lose that option or experience worse tax outcomes.
Based on analysis of 2 sections of legislative text.
Eliminates the marriage penalty by applying doubled single-person tax-bracket thresholds to married filers for tax years after Dec 31, 2024.
Official title: To amend the Internal Revenue Code of 1986 to eliminate the marriage penalty in the income tax rate brackets.
Introduced January 9, 2025 by W. Greg Steube · Last progress January 9, 2025
Changes the individual income tax rate tables so married couples no longer face a “marriage penalty.” For tax years beginning after December 31, 2024, the bill directs that married joint filers use the unmarried individual tax-rate table, with each bracket threshold doubled, and removes the separate married-filing-separate brackets so married couples are taxed using the adjusted single-person schedule.