Article by Gerður Guðmundsdóttir on partial abolishment of joint taxation in the government‘s 2026-2030 budget
Gerður Guðmundsdóttir, a senior associate in the firm‘s tax department, has written an article for Lögrétta Selecta, an online magazine published by Lögrétta, the law student association of Reykjavik University. The article discusses the partial abolishment of joint taxation in the government‘s budget for 2026-2030.
The article notes that the government's new budget proposal to abolish the transferability of unused tax brackets has several implications. Firstly, it weakens the rationale for jointly taxed individuals to continue bearing joint and several liability for each other's tax debts, raising questions based on constitutional equality principles. Secondly, while the proposal reduces couples neutrality, it may enhance marriage neutrality. Paradoxically, the liability rule still functions as a marriage penalty under these circumstances. Finally, although the proposal aims to increase gender equality under certain conditions, Gerður suggests that other policy changes would be more effective if gender equality is the primary goal.
The full article is available on Lögrétta Selecta's website (in Icelandic only).
Gerður Guðmundsdóttir, a senior associate in the firm‘s tax department, has written an article for Lögrétta Selecta, an online magazine published by Lögrétta, the law student association of Reykjavik University. The article discusses the partial abolishment of joint taxation in the government‘s budget for 2026-2030.
The article notes that the government's new budget proposal to abolish the transferability of unused tax brackets has several implications. Firstly, it weakens the rationale for jointly taxed individuals to continue bearing joint and several liability for each other's tax debts, raising questions based on constitutional equality principles. Secondly, while the proposal reduces couples neutrality, it may enhance marriage neutrality. Paradoxically, the liability rule still functions as a marriage penalty under these circumstances. Finally, although the proposal aims to increase gender equality under certain conditions, Gerður suggests that other policy changes would be more effective if gender equality is the primary goal.
The full article is available on Lögrétta Selecta's website (in Icelandic only).
Gerður Guðmundsdóttir, a senior associate in the firm‘s tax department, has written an article for Lögrétta Selecta, an online magazine published by Lögrétta, the law student association of Reykjavik University. The article discusses the partial abolishment of joint taxation in the government‘s budget for 2026-2030.
The article notes that the government's new budget proposal to abolish the transferability of unused tax brackets has several implications. Firstly, it weakens the rationale for jointly taxed individuals to continue bearing joint and several liability for each other's tax debts, raising questions based on constitutional equality principles. Secondly, while the proposal reduces couples neutrality, it may enhance marriage neutrality. Paradoxically, the liability rule still functions as a marriage penalty under these circumstances. Finally, although the proposal aims to increase gender equality under certain conditions, Gerður suggests that other policy changes would be more effective if gender equality is the primary goal.
The full article is available on Lögrétta Selecta's website (in Icelandic only).