Courtesy of USAToday.com:
“Two can live as cheaply as one.” This old saying is mostly true. However, when it comes to death, divorce, and taxes, two are probably better off financially if they don’t marry. Intentionally or not, many federal and state laws reward couples that choose to live together without marriage.
Oh, it’s intentional. The elites are determined to destroy the family unit. Read Plato’s Republic, wherein he discusses how the family must be abolished to get rid of family loyalties, affections, and interests. Plato suggests that citizens’ loyalties will thus be limited to the state.
Or take a look at the Georgia Guidestones, the monument that was funded by ‘R.C. Christian’, and which proclaims that there is a need to “maintain humanity under 500,000,000 in perpetual balance with nature”. Look at the media furor and attacks on women who suggest that young women follow a traditional path of marriage and children instead of spending their twenties as drunk college sluts and corporate mistresses.
The tax code also encourages couples to remain unmarried. Take a couple that both earn high incomes. Suppose each has taxable income of around $400,000, which is the breakpoint where the 39.6% tax bracket begins. As two singles, as long as their taxable income is $400,000 or less, they both remain in the 35% tax bracket. However, if they marry, their joint income goes to $800,000 while the 35% tax bracket only expands to $450,000 for couples.
That means they now pay an additional 4.6% in federal income taxes on the excess of $350,000, or $12,600. Some may be quick to dismiss that amount as trivial, given their income level, but the point is still that marriage for them brings a tangible cost in higher taxes.
I have already covered the tax effects here and here. Interesting that the Obamas had an income of about $480,000 in 2013 and only ended up paying 20.4% in taxes, even though that’s where the 39.4% tax bracket begins. Hrm…
But that’s another post for another day. Onward:
For couples that decide not to marry, the potential tax planning is ripe with opportunity. Such couples can do anything that the tax code or state statutes prohibit married or related parties from doing. This provides some great tax savings and asset protection opportunities. For example, spouses cannot be the trustees of each other’s irrevocable or asset protection trusts, but unmarried partners absolutely can.
Never forget that people respond to incentives. And the lunatics in charge know that…