Earl vs. Seaborn: Did the Fruit Fall Too Far from the Tree?

In 1948, Congress created the joint filing status to try to create tax equality between married couples in community and non-community property states. Favored tax treatment for taxpayers in community property states was a result of the 1930 Supreme Court case Poe v. Seaborn. Joint filing, however, has created the marriage penalty and innocent spouse problems. In addition, if same-sex marriages receive joint filing status, this could allow virtually everybody, except minors, to use the joint filing status while leaving problems in place.The tax benefits that are intended to help families with children frequently go to families without children as a result of their filing status and the income phase-outs associated with the benefits. We should require all earners to file a tax return but allocate larger standard deductions and personal exemption amounts to each person. This would allow a taxpayer who can claim a dependent to get a greater deduction. Thus, we would give the "family tax benefits" that were intended to help children, to families who actually have children.We should also give a step-up in basis of all community property on the death of a decedent, while only allowing a step-up in basis of half of those same assets to a surviving spouse in a non-community property state. We should repeal Seaborn, and all of the tax sections which give favored treatment to taxpayers in community property states while denying those same benefits to similarly situated taxpayers in non-community property states.