Sunday, October 15, 2006

Marriage, non-Marriage, and Economics

An interesting article in the NY Times today discusses the implications that now a minority of US households consist of married couples with or without children. A quote: “we have an anachronistic view as to what extent you can use marriage to organize the distribution and redistribution of benefits” expresses how I feel about the way taxation, benefit, and other systems are set up in the US. In my opinion the state should only play a role in helping (or not) raising children who are not able to fend for themselves and are society's future members. I don't see why the state should be at all involved per se in partnerships with or without children involved. The reason they are involved is because historically women had very limited economic opportunities so it was natural to provide benefits to women who were married and not working through their husbands (for example by inheriting social security payments). Rather than extend such an anachronistic system to further people through gay marriage (though the numbers are small as this article points out and so practically don't make a big difference) I would favor making the system more gender neutral and individual based and allow people to develop partnerships as they see fit without worrying about the financial implications. Many countries have systems that are much closer to my ideal. Australia, one of the two countries I am a citizen of (and the other one is not the United States) is closer to this ideal in many ways. Changing a small country, populationwise, is probably easier than changing institutions in a country as large as the US.

3 comments:

Tiredbuthappy said...

This is great news. Maybe now more forms will have a check box for "domestic partnership" or something. I am tired of having to cross out "single" and "married" and "divorced" to write "living with partner" when I fill out forms.

Of course, on my tax forms I am still single, single, single. It always feels surreal checking the single box.

Thanks for the link, Moom, and thanks for this useful perspective on marriage and benefits.

signed,
Tiredbuthappy
(happily unmarried to my partner of five years)

Anonymous said...

The tax code supplies incentives for the general good of society such as home ownership, charitable giving, alternative fuels, and .... married families with children.

mOOm said...

Obviously there are differences in opinion about which objectives society should support. I don't have any problem with the children part or with married with children (but no money if you have children and aren't married if society thinks that is appropriate). I don't get why married without children should be any different to not married without children. Personally (and economically) I don't see any reason to give any breaks for home-ownership. Australia treats housing as pure consumption - no capital gains tax but no tax breaks on mortgage interest for owner occupiers either. In fact in the US the only reason there is an a mortgage tax break is that the housing industry managed to stop getting the break removed which once applied to all interest....