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Could Tax Unit Reform Improve Labor Supply, Raise Revenue, and Increase Welfare? Yes, Say Macro-Economists!
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Could Tax Unit Reform Improve Labor Supply, Raise Revenue, and Increase Welfare? Yes, Say Macro-Economists!
Holter, Hans Aasnes and Krueger, Dirk and Stepanchuk, Serhiy, Till the IRS Do Us Part: (Optimal) Taxation of Households (2026). Emily Satterthwaite Currently, about half of the U.S. labor force is comprised of individuals who are married. And nearly 97 percent of married individuals file their taxes jointly, meaning that the married couple is the so-called “tax unit.” For spouses who earn significantly different amounts of income, one of the be…
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