Trapped in America's Safety Net

why get married? EITC, CHIP, and sometimes Medicaid benefits extend relatively far up the income ladder. However, when two modest-income people marry, their combined incomes can push them out of eligibility, and their increased taxes and lost benefits combine for the high effective marginal tax rates described above. The Medicaid and CHIP health insurance benefits are particularly valuable, since many low-and moderate-income people have no other means of getting health coverage. So why marry? As economist Eugene Steuerle puts it, “Not getting married is the major tax shelter for low-and moderate-income households with children.” 20