Fewer people are paying taxes because fewer people are married

Here is an interesting essay from The Family in America.

Here’s the problem:

Just two days before Tax Day this year, the Heritage Foundation was quick on the draw with a Backgrounder by Curtis S. Dubay citing IRS data showing that the bottom 50 percent of tax filers pay less than 3 percent of all income taxes. According to Dubay, “the rapid increase in the number of nonpaying tax filers caused by tax credits is leading the country to a dangerous tipping point.” Like other conservatives and libertarians, he fears that once the bottom half of tax filers pay no taxes whatsoever, they “could vote themselves an increasing share of government benefits at no cost to themselves.”

And here’s what’s causing the problem:

More important, this relatively new concern about the growth in the number of Americans paying no income taxes overlooks the social roots of the problem, particularly the decline of the most economically productive segment of the population: the married-two parent family.5 Consequently, few economic conservatives seem willing to connect the dots between the changing demographics of the American taxpayer, which Hodge at least acknowledges,6 and the growth of Americans paying no taxes. They seem more eager to blame the latter on the addition and expansion of refundable credits, especially the child tax credit, not changing demographics. Yet Roberton Williams of the Tax Policy Center, a joint project of the Urban Institute and the Brookings Institution, estimates that married couples are far less likely to be non-taxpayers in 2009 than single filers or head-of-household filers. In this last category, his model shows 72 percent paying no income taxes, the highest percentage of all tax filing categories. Only 38 percent of married-joint filers, and 26 percent of married-separate filers, pay no taxes.7

Indeed, the Tax Foundation’s own analysis of IRS data documents the decline in the proportion of married filers from 65 percent of returns in 1960 to 41 percent in the years 2000–02, and the dramatic growth of head-of-household filers, representing largely unwed mothers, from 2 percent to 15 percent during the same period. Moreover, looking at data from 2002 returns, the foundation finds that married couples, while they file less than half of all tax returns, pay nearly three-quarters of all income taxes paid by the American people.8 Even though the analysis does not include changes that might arise from the doubling of the child tax credit to $1,000 in 2003, the numbers nonetheless suggest that the growth in the number of Americans who pay no income taxes is driven more by the retreat from marriage than by the proliferation of credits in the tax code, as problematic as that might be. The numbers further suggest that if conservatives are serious about tax reform, they can no longer ignore the elephant in the room—the retreat from marriage and family life—that undermines the very economic growth they seek. Nor can they presume that a flatter tax system with lower rates and a wider base, favored by the  libertarian wing of the GOP, will lead to smaller government, as analysis by economist Gary Becker shows that countries with flatter tax systems tend to have larger governments.9 They must therefore be open to tax reform proposals that recognize the natural family as the social and economic ideal as well as reinforce the recovery of marriage and the child-rich family—not economic growth for its own sake—as centerpieces of American life.

This is yet another reason for fiscal conservatives to take notice that you cannot have economic growth if the traditional family is replaced with single-mother families. Single motherhood is not a situation where men are responsible and work hard as providers. It infantilizes men and rewards them for acting like nomads and barbarians. And the children who are raised without fathers are not going to be as mentally healthy or productive as the ones raised with fathers. The traditional family, with children raised by biological parents who are attached to them, is an important part of future economic growth. It’s all linked together – social conservatism and fiscal conservatism.

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