From dual-earner, married couples, to opposite and same-sex cohabitation, America's family structure, lifestyles, and attitudes have been changing in recent years. This paper provides a framework of understanding how families interact and make economic decisions. It examines whether external and internal benefits to family formation exist. The government should develop policies are both equitable and efficient depending on what benefits exist for society, if any. Currently, one of the biggest gains married partners make occurs within the Federal Income Tax and Social Security Systems. However, this structure was created at a time when families were very traditional-a working husband and childrearing, non-working wife. This structure will be simulated to show how America's changing family structures are being affected by this obsolescent model. Results provide evidence that more and more families are becoming economically disadvantaged because they do not get the same tax incentives and benefits that married, traditional families do.
Gray '06, Adam M., "Effects of the Federal Income Tax Structure and Social Security on the Changing US Family Composition" (2006). Honors Projects. Paper 2.