Monday, January 13, 2003

A story published today by the Christian Science Monitor reports that President George Bush's $674-billion plan is serious tax relief for married couples, especially those with kids. It's part of a broader Republican-led effort in recent years to bolster the traditional family.

Yet relief for marrieds comes at a price: a growing so-called "bachelor's tax" on singles. And with burgeoning numbers of single Americans - unmarried couples, solo singles, and others - there's new potential for a bachelor-tax backlash.

This element of the Bush tax plan has gotten relatively little public attention. But it reflects a decades-old tension over the shape of the stereotypical American family, in which the tax code is a prime cultural-political battleground. Tax policy is, to some extent, also a window into the nation's attitudes toward the institution of marriage.

"If you're married, you tend to get more than if you're single" under the Bush plan, says Mark Luscombe, principal analyst at tax publisher CCH in Riverwoods, Ill. "If you have children, you save more than if you don't."

Politicians, Republicans in particular, have talked about the need to fix the "marriage penalty" - a tilt in the tax code that levies more on some married couples than if they were singles. The proposal Bush announced last week would accelerate the effort to address the issue.

But it means that in some cases, the tax cut for singles is minimal. Under Bush's plan, a married couple with two kids making $40,000 a year would get a $1,133 tax break. A married couple with no children earning $40,000 would get $450. And a single person with no kids making $40,000 would get $126, according to the Tax Foundation and the Deloitte Touche tax group. An rise in the child tax credit to $1,000 from $600 is a further bonus to couples with kids.

Because of the tax code's complexity, it's mathematically impossible to eliminate both the "marriage penalty" and the "singles penalty," experts say. It's always a trade-off.

Married parents "ought to be given help because of the social good they provide" in raising children, says Glenn Stanton of Focus on the Family, a conservative Christian group in Colorado Springs, Colo. He admits that marriage isn't the silver bullet for social ills but observes that well-parented kids often cause less crime or other problems, thus costing society and the government less money. And good parenting is more likely among committed couples, he says.

The GOP's traditional-family approach also includes abstinence education for teens and encouraging welfare moms to marry.

But this doesn't reflect the complexities of modern American life, argues Thomas Coleman, executive director of the American Association for Single People in Los Angeles.

Nearly half of all American households are headed by unmarried adults - solo singles, cohabiting couples, domestic partners, widows and widowers, and others. So to discriminate against them is bad public policy, he says.

Besides, Coleman added, not everyone can be married - even if they want to be. He includes everyone from gays to those who simply haven't found true love.