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Tuesday, January 08, 2008
Kid Money
Whoa, Baby! $1,000 Strollers?
Kathryn Elizabeth Tuggle
FOXBusiness
NEW YORK--Bringing up baby has never been so expensive. With luxury options like $1,000 strollers and $2,500 reproduction vintage prams,
parents can spend a fortune on wheels alone!
And the spending trend is likely to continue, according to Margaret Whitfield,
an analyst with Sterne, Agee and Leach, who cited as proof a recent report that said the birth rate climbed 3% last year.
“People
are having children later in life, and the first child is where you spend your bucks,” Whitfield said.
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Sure, we know some of you are saying the term "marriage penalty" is redundant. In fact, of all the costs associated with getting married (have you seen the cost of a wedding cake lately?), the marriage penalty can be the worst.
Here's how it works: Mr. and Mrs. Right walk down the aisle in wedded bliss and suddenly they¿re a two-income household. If both make roughly the same amount of money, they can be pushed into a higher tax bracket. That's bad, since the higher the bracket, the higher the tax. So, if both were single, they'd end up writing two smaller checks to the tax man that, if combined, would add up to less than the giant check they write in a state of wedded bliss.
Is that fair? We're not touching that, but there is a flip side that few people talk about. The marriage penalty only kicks in if both members of the couple make close to the same amount of money. If there's a big disparity in pay, there's actually a tax advantage. Call it the marriage bonus.
And, it¿s important to remember that there are other financial benefits, such as lower life-insurance rates or health care premiums, that can make up for the extra tax couples pay. So don't let Uncle Sam stop you from saying, "I do."






