Journal article


Income Splitting - Is it good for both partners in the marriage?


Publication Details
Author(s): Wrede M
Publisher: Wiley-Blackwell: No OnlineOpen
Publication year: 2003
Volume: 4
Pages range: 203-216
ISSN: 1465-6485
Language: English

Abstract

This paper analyzes how deviating from individual taxation affects married couples. The focus is on time allocation, on investment in family-specific human capital and on distribution of income within the family. Two insights are discussed in detail. First, the distribution of tax-reduction gains due to the income splitting system depends on whether the family has been started or not. After marriage, joint taxation increases redistribution among family members. Second, although joint taxation reduces the tax burden of the family, it might harm the marriage partner that is more productive in household production provided that potential marriage partners foresee the effects of joint filing on the time allocation within the family.



Focus Area of Individual Faculties


How to cite
APA: Wrede, M. (2003). Income Splitting - Is it good for both partners in the marriage? German Economic Review, 4, 203-216. https://dx.doi.org/10.1111/1468-0475.00079

MLA: Wrede, Matthias. "Income Splitting - Is it good for both partners in the marriage?" German Economic Review 4 (2003): 203-216.

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