Higher Deduction Sought For Couples

Some single taxpayers would get a state income tax increase under legislation introduced in the Idaho Legislature to eliminate the “marriage penalty.”

Gov. Phil Batt promised earlier to eliminate the penalty, which gives married taxpayers filing jointly less than twice the amount granted as a standard exemption for single taxpayers.

The bill approved for introduction Friday by the House Revenue and Taxation Committee increases the married couple’s deduction and reduces the standard deduction for single taxpayers. The net result would be that married couples would receive twice the standard deduction of a single filer.

On a joint return, the standard deduction starting next year would go up $392. The single taxpayer would lose $504 from the standard deduction.

The change would affect only people who take the standard deduction on their state tax return.