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September 24, 2007

O'Malley tax plan includes a marriage penalty

From my colleague Eileen Ambrose. This got left out of tax stories we ran over the weekend.

O'Malley's tax plan introduces a marriage penalty that wasn't there in the past, says Andrew Bareham, a certified public accountant with Gross Mendelsohn in Baltimore. That's because the income limits for married couples in the proposed tax table aren't simply double what they are for singles. Singles with taxable income of $2,000 to $15,000 would be taxed at a rate of 4 percent, while for couples the income limit is $4,000 to $22,500, not $30,000. So, a married couple with $150,000 in income would pay a little more in tax than two singles living together who each make $75,000, Bareham says.

Here's Eileen's column on taxes from yesterday.

Posted by Jay Hancock at 11:02 AM | | Comments (0)
        

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Wednesdays and Fridays.
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