State lawmakers look at dropping income tax penalty
Friday, February 25th 2005, 6:08 am
By: News On 6
OKLAHOMA CITY (AP) A measure that would get rid of the state's income tax penalty for couples who file a joint tax return has been approved by the House.
The measure, if approved would reduce state revenue by nearly $55-million.
The bill's author Representative Pam Peterson has said her bill encourage couples to marry by eliminating the income tax penalty they experience by filing a joint tax return.
The tax code gives married couples a standard deduction of two-thousand dollars, the same deduction granted single filers.
The result is that couples essentially have their tax deduction cut in half for getting married.
The legislation would allow couples to compute their taxes as individuals, then add the amounts due on their return together.