Tax Benefit for earning Couples
PRESIDENT Obama proposes to bestow a benefit on working couples. His Statement says,
Two-earner couples can face high penalties for working. When both spouses work, the family incurs additional costs in the form of commuting costs, professional expenses, childcare, and, increasingly, elder care. When layered on top of other costs, including federal and state taxes, these work-related costs can contribute to a sense that work isn't worth it, especially for parents of young children and couples caring for aging parents. While women, including married women, are increasingly family breadwinners, the fact remains that they are still much more likely to be the ones who withdraw from the labour force in these circumstances, taking a toll on their future job options and earnings, and hurting our overall economic growth.
The President proposes a new second earner credit that recognizes the additional costs faced by families in which both spouses work. A total of 24 million couples would benefit from this proposal, which would provide a new, simple second earner credit of up to USD 500.
Let us hope the Indian Finance Minister does borrow this idea.