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Chapter 30: Q.1 - For Critical Thinking (page 687)

How might a state such as Arkansas adjust its administration of income maintenance programs to reduce or eliminate the marriage penalty? (Hint: What if the state were to base programs' benefits on total dollars of income received by both adults combined whether or not they were married?)

Short Answer

Expert verified

By rationalizing tax and considering the child as a single unit.

Step by step solution

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01

Given Information

Pay Maintenance Program is a law of the public authority to direct the expense framework on pay acquired by the inhabitants of the state.

02

Explanation

A state, for example, Arkansas can wipe out the marriage punishment in the event that it considers a family having kids as a solitary unit and charges a comparable piece of pay as a duty as it charges to a person. This will stop the disincentives related to marriage.

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