Income Taxation of the Husband and Wife

Abstract

This article examines the income tax treatment of a married couple who are living together. The law requires the income of the wife to be aggregated to the income of her husband, upon which it is taxed as the income of one individual in the name of the husband. Although it is possible for the wife to opt for separate taxation, the default position is still based on income aggregation. This article examines the law, the possible reasons for it, and its consequences. The continued use of the income aggregation principle is questioned, and an alternative approach is suggested.