Featured

Indiana gov. seeks to nix tax policies disincentivizing marriage

Unsplash/Samantha Gades
Unsplash/Samantha Gades

The governor of Indiana has signed an executive order designed to ensure that the state’s tax policies do not disincentivize residents from getting married.

In a statement Monday, Indiana’s Republican Gov. Mike Braun announced that he signed Executive Order 25-51: Removing Government-Imposed Tax Penalties on Marriage.

“Marriage is the fundamental cornerstone of strong families and strong communities, and we need to make sure Indiana’s tax and benefits systems aren’t penalizing Hoosiers for getting married,” he wrote. 

Get Our Latest News for FREE

Subscribe to get daily/weekly email with the top stories (plus special offers!) from The Christian Post. Be the first to know.

Braun’s office listed higher earnings for married people throughout their lifetime as one of the benefits of marriage. It also cited research findings that “the top predictor of upward mobility for children was the number of intact families around them.” 

The governor identified marriage as “the fundamental building block of families and society for millennia” and part of a “success sequence” consisting of graduating from high school, obtaining full-time employment and waiting until at least the age of 21 before getting married and having children.

“Research initially conducted during the Clinton administration found only 2% of American adults who follow the ‘success sequence’ are in poverty and nearly 75% are in the middle class,” the order stated. “More recent research found that 97% of Millennials who follow the success sequence are not poor by the time they reach their prime young adult years (ages 28-34), but 53% of young adults who did not follow this sequence at all are in poverty.” 

The executive order also said The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 “eliminated some of the disincentives to marriage in federal welfare programs, but disincentives persist due to how income of a cohabiting partner or spouse is factored into eligibility.”  

Braun’s office listed examples of what it says are Indiana’s tax policies that fail to incentivize marriage, noting that single individuals can deduct up to $3,000 in rent expenses from their taxes while a married couple filing jointly has an identical exemption cap of $3,000.

Similarly, married and single people have the same maximum credit of $1,500 for their 529 contributions. 

The executive order directed the Indiana Department of Revenue, as well as all other state agencies that administer either welfare or benefit programs, to “estimate the amount of financial disincentive the current laws and policies place on marriage” and “recommend changes to the tax laws and policies that incentivize marriage and remove additional burdens being placed on those [who] are married.” 

Agencies that deal with tax policies must provide a report by July 1 outlining recommended changes to remove marriage penalties, while agencies centered on benefit programs must do the same by July 1, 2026. 

The executive order also expressed concern that “disincentives continue to exist as welfare participation reduces the likelihood of marriage while the mother is receiving benefits.” 

“Signed in time for Tax Day, this executive order will make sure Indiana’s policies are providing an incentive for Hoosiers to build strong families, rather than getting in the way,” Braun wrote. 

Ryan Foley is a reporter for The Christian Post. He can be reached at: ryan.foley@christianpost.com

Source link

Related Posts

1 of 236