Remaking the Tax Code to Help the Working Poor
Through the removal of financial restrictions tacked onto certain marriage policies, President Barack Obama brings hope to low-income couples by acknowledging the financial and moral benefits marriage can have on America's society. Politico reports:
Most benefits for low-income families phase out as income rises. Taken separately, these reductions are understandable and reasonable. But combined, they effectively act as high tax rates — reducing take-home pay for low-income workers — and create a disincentive to work harder. Low-income families can thus find themselves in a situation where receiving a raise or promotion results in losing more in benefits than they receive in additional earnings.
Read more here.