Tuesday, June 21, 2011

Taxed for Being Gay

In light of this, some facts on why it matters.

A friend of mine, who is unemployed, is fortunate to have a partner whose job allows domestic partners to be carried on health insurance - for a price. My friend writes: "Straight people don't pay these taxes."

From the Human Rights Campaign:

Taxation of Domestic Partner Benefits

When employees elect health insurance coverage from their employers for their families, the majority of their employers contribute to at least half of the insurance coverage's cost. For employees with different-sex spouses, federal and state tax law do not require employers to report their contribution to the employee's or the employee's different-sex spouse as taxable wages earned — the value of the health insurance coverage can be excluded from the employee's gross income.

Non-dependent same-sex partners and spouses (and their dependents) are treated differently under federal and most states' tax laws.
Short version: employees who carry domestic partners on their health insurance must pay taxes on the value of the employer's share of the health insurance. Employees who carry spouses on their health insurance do not have to pay those taxes.

The next time a repug raves about taxes and/or gay rights, ask her if she supports higher taxes for gay people.

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