It is impossible for a progressive income tax system to be both marriage neutral and horizontally equitable.

Question

Quizplus · Accepted Answer

A progressive income tax system, which imposes higher taxes on higher-income earners, cannot be both marriage neutral and horizontally equitable. This is because it does not account for the fact that a married couple may have combined incomes that fall into a higher tax bracket, leading to a higher tax burden than two unmarried individuals with the same combined income. To be marriage neutral, the tax system would have to treat married couples as two separate individuals for tax purposes, which would not be horizontally equitable as it would not account for the joint nature of their financial responsibilities and resources.

It Is Impossible for a Progressive Income Tax System to Be