Indiana Governor Moves to Eliminate Marriage Tax Penalties
Indiana is taking a bold step to support marriage among its residents by addressing tax policies that may discourage couples from tying the knot. Governor Mike Braun has signed an executive order aimed at removing financial obstacles that could deter marriage, a move he believes will strengthen families and communities statewide.
In a recent statement, Governor Braun announced the signing of Executive Order 25-51, titled “Removing Government-Imposed Tax Penalties on Marriage.” He emphasized the importance of marriage, stating, “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.”
Braun’s office highlighted that married individuals typically earn more over their lifetimes. Furthermore, research indicates that the prevalence of intact families is a significant predictor of children’s upward mobility. The executive order supports what Braun calls a “success sequence,” which includes graduating high school, obtaining full-time employment, and waiting until at least age 21 to marry and have children.
The executive order references findings from the Clinton administration, noting, “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.” More recent studies show that 97% of Millennials who adhere to this sequence avoid poverty by ages 28-34, while 53% of young adults who do not follow it experience poverty.
Despite changes introduced by The Personal Responsibility and Work Opportunity Reconciliation Act of 1996, marriage disincentives remain, particularly in how a cohabiting partner’s or spouse’s income affects welfare program eligibility.
Governor Braun’s administration pointed out specific examples of Indiana’s tax policies that do not incentivize marriage. For instance, both single individuals and married couples filing jointly can deduct up to $3,000 in rent expenses, and both receive the same maximum credit of $1,500 for 529 contributions.
The executive order mandates the Indiana Department of Revenue and other relevant state agencies to “estimate the amount of financial disincentive the current laws and policies place on marriage” and to “recommend changes to the tax laws and policies that incentivize marriage and remove additional burdens being placed on those [who] are married.”
Agencies responsible for tax policy must submit a report with proposed changes by July 1, while those focused on benefit programs have until July 1, 2026. The order also addresses concerns that welfare participation may reduce the likelihood of marriage during the time benefits are received.
Governor Braun concluded, “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.”
This article was originally written by www.christianpost.com
