The Penalty of Marriage

When we think of weddings, we imagine a soft-flowing white gown, enormous arrangements of vibrant, sweet-smelling flowers, and an elegant reception to end the evening. Then again, as the saying goes, "If it's too good to be true, it's probably not." Most couples expect the aggravations, frustrations, and irritations of planning their wedding, but many overlook, and sometimes do not think about, the "marriage penalty."
What exactly is the "marriage penalty?" To begin with, the penalty punishes the average double-income couple. For example, a single person taxed in 2003 would be taxed as follows: the first $7,000 of taxable income would be taxed at 10% ($700), the next $21,400 at 15% ($3,210), the next $40,400 at 25% ($10,100), and the rest at a climbing rate of 28%, 33%, 35%, etc (SmartMoney.com, 2003). As a couple, the federal government would tax both incomes as one. Therefore, taxation before the wedding would be lower than taxation after the wedding. As a result, many c...