Right now, opposite sex spouses get tax breakes on workplace offered health insurance. If an employer is generous enough to offer health insurance to same-sex partners of employees, the IRS doesn't recognize those partners as a legal dependent, because of DOMA, and therefore subjects the benefit... more
Right now, opposite sex spouses get tax breakes on workplace offered health insurance. If an employer is generous enough to offer health insurance to same-sex partners of employees, the IRS doesn't recognize those partners as a legal dependent, because of DOMA, and therefore subjects the benefits to several added taxes. First, while a heterosexually married couple gets the entire employee-paid premium deducted post-tax (thus reducing income taxes), a homosexual domestic partner or even same-sex married couple only gets the employee's share of premium deducted pre-tax. The premium for the same-sex partner is deducted POST TAX due to the IRS regulations and DOMA. Second, the even larger share of premiums which is generally paid by the employer, while tax-free to the employee, and tax-free to heterosexual spouses, is considered taxable to domestic partners and even same-sex married couples under IRS regulations. Therefore, the employer must, at year end, report THEIR PORTION of the health insurance premium contribution for the same-sex partner on the employee's W-2 as "imputed income" and it becomes TAXABLE for the employee. Of ALL things in the country, and in the economy, can even Congressional opponents of same-sex marriage agree that ONE THING that ought not to be taxed is PREMIUMS FOR HEALTH INSURANCE, no matter who they are for?