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Posts Tagged ‘small business’

Eliminating the Tax Penalty on Gay-Friendly Businesses

September 12th, 2011

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Our corporate tax code dates back to 1986, before the internet and when China was “red.” It is hopelessly out of date with the goings on of the rest of the world, but there is one area where it is completely antiquated with changes in America: dealing with employee benefits for gay couples.

There are nearly one million gay couples living in the United States, according to the Census Bureau. Today, jurisdictions allowing gay couples to either marry or form legal unions are now home to about 150 million people—up from less than 15 million people fifteen years ago. And two-thirds of Fortune 1000 companies provide benefits like health care to gay couples. But if companies provide these benefits under the same tax formulation as they would for straight married couples, they are in violation of the law—and so are their employees.

Here’s the problem. While employer-provided health care is treated as a tax-free benefit for everyone else, the IRS counts it as taxable income for gay domestic partners and spouses. That means businesses like Target, IBM, and Nabisco who provide coverage to partners of their gay employees must go back and add “imputed income” to their employees’ pay stubs for the cost of that benefit. Read the rest of this entry »

Bush tax cuts reverse party lines

August 24th, 2010

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This piece was originally published in Politico.

The next big issue on the congressional agenda is a real humdinger: the Bush tax cuts.

This is one issue on which Republicans can’t “just say no.” If Congress fails to act by the end of the year, the Bush tax cuts will expire. And Republicans will have enabled a major tax hike.
Read the rest of this entry »