Theory Versus Reality: The Partnership Model of Marriage in Family and Income Tax Law

Abstract

This Article explores the gap between theory and reality in the context of family and tax law. Specifically, it explores the effects inequality of power and lack of complete unity of interest have on intrafamily allocations of resources and the significance of those allocations for tax purposes. Part I surveys the partnership model of marriage and some proposals in the family law area to modify or abandon it. Part II focuses on actual intrahousehold allocations of resources and the lack of total unity of interest. Part III examines the current tax treatment of marriage and the family and the tax effects of some of the family law proposals. Part IV explores what the tax treatment of the family might look like if it recognized both the inequality of intrahousehold resource allocations and the lack of complete unity of interests.

Keywords: income taxation, intrahousehold allocations, joint return, marriage,marriage penalty, tax policy, taxable unit