National
McDermott introduces pro-gay tax equity bill
Legislation would eliminate tax on employer-provided coverage
The sponsor of legislation that would ensure tax equity for same-sex couples receiving employer-provided health benefits envisions upcoming tax reform legislation as a potential vehicle for passage.
Rep. Jim McDermott (D-Wash.), the sponsor of the Tax Parity for Health Plan Beneficiaries Act, said in an interview with the Washington Blade that he sees an opportunity to move his legislation forward when Congress takes up planned legislation for tax reform.
“It will be easy to put it in some tax bill along the way,” McDermott said. “It won’t be a standalone bill.”
Rep. Dave Camp (R-Mich.), chair of the House Ways & Means Committee, has said he wants to address tax reform during this Congress and has held hearings on the issue, although the time for when the panel will take up the larger bill is still unknown.
A McDermott staffer, who spoke on condition of anonymity, said his boss could amend the larger tax reform legislation with the Tax Parity for Health Plan Beneficiaries Act when it comes before the committee, but said it “depends on the process the Republicans take.”
McDermott’s legislation rectifies an inequity faced by LGBT couples under current law, which exempts employer-provided health coverage for opposite-sex spouses from an employee’s gross income, but makes domestic partner benefits and coverage for same-sex spouses subject to taxation.
Consequently, employees seeking to cover their same-sex partners or spouses pay more income and payroll tax than a straight employee with an opposite-sex spouse.
This inequity also burdens employers who want to extend their health benefits to the partners of their gay employees. Companies that offer such benefits have the administrative burden of calculating taxes separately and have to pay additional payroll taxes.
McDermott said he introduced the legislation, which has been languishing in Congress since 2001, as a “matter of basic fairness” for same-sex couples who are receiving employer-provided health benefits.
“If there is a couple who are in some kind of union, recognized in one way or another, they have to pay taxes on it,” McDermott said. “That’s not fair. Why should a gay couple, or any kind of couples that are living together, using one health insurance plan have to pay taxes whereas if you’re married and not a same-sex couple, you don’t have to pay taxes.”
Joe Solmonese, president of the Human Rights Campaign, said in a statement that the legislation will eliminate an additional barrier that same-sex couples face in securing health insurance coverage.
“This legislation would remove that added tax burden, which can be as much as $2,200 per year, as well as the penalty imposed on fair-minded employers who provide equal benefits to their LGBT employees,” Solmonese said.
In the last Congress, the legislation was included as a provision in a House version of health care reform legislation. However, the language never made it as part of the final bill because the Senate version of health care reform was the bill that made its way to President Obama’s desk.
Despite the failure last week, McDermott said the prospects of passing tax reform legislation this Congress are even greater than last year — even with Republicans in control of the House — because of the plan for Congress to address tax reform legislation by the end of next year.
“We’ve got some Republican sponsors this time,” McDermott said. “As a matter of fact, there are a lot more Republicans who have heard from people in their district who are saying, ‘Just change the tax code and make it easier for us.'”
As of this week, McDermott’s legislation has three co-sponsors: Reps. Richard Hanna (R-N.Y.) , Earl Blumenauer (D-Ore.) and Nan Hayworth (R-N.Y.). In the Senate, Chuck Schumer (D-N.Y.) is set to introduce companion legislation either this week or the next. Sen. Susan Collins (R-Maine) will be an original co-sponsor.
R. Clarke Cooper, executive director of the Log Cabin Republicans, praised the Republican co-sponsors for joining on in early support of the legislation.
“We need common sense, pro-growth policies to give businesses and entrepreneurs renewed confidence in our economy and to remove Washington as the roadblock to job creation,” Cooper said. “Under current policy, the federal tax code is punishing the business community for providing their gay and lesbian employees with benefits. Congress can help private sector growth by eliminating the punitive domestic partner tax.”
An estimated 60 percent of Fortune 500 companies offer health insurance benefits to the same-sex partners of the employees. On May 31, 77 major American businesses — including Alaska Airlines, Microsoft and Boeing — sent a letter to McDermott in support of the legislation.
“Companies like ours in increasing numbers have made the business decision to provide health benefits to such beneficiaries, such as the domestic partners, adult children, certain grandchildren, etc. of our employees,” the letter states. “This coverage and coverage of non-spouse, non-dependent beneficiaries helps corporations attract and retain qualified employees and provides employees with health security on an equitable basis.”
The legislation falls under the jurisdiction of the Republican-controlled House Ways & Means Committee, which most observers expect to be unfriendly to pro-LGBT legislation. Camp’s office didn’t immediately respond to a request for comment on the bill.
However, one of the signers of the legislation is the Dow Chemical Co., which is headquartered in Midland, Mich., and in Camp’s district. Supporters of the legislation are hoping Dow’s endorsement will prompt Camp to support it.
McDermott said he hasn’t had discussions with Camp about his bill yet, but plans to do so when the congressional recess ends at the start of next week.
The administration has also yet to voice support one way or the other for the legislation. Shin Inouye, a White House spokesperson, told the Blade the administration hasn’t yet reviewed the measure.
“While we have not reviewed this specific legislation, the president generally supports efforts to give parity and equal protection to same-sex couples,” Inouye said.
McDermott said he doesn’t see any interim action that President Obama could take to address the situation and said passing legislation is the only to end the tax inequity faced by LGBT couples.
“I think it’s going to require a law change,” McDermott said. “If you keep after something that’s right, then ultimately the stars line up and it passes. That’s what’s going to happen here.”
Federal Government
US Census Bureau testing survey on LGBTQ households
Agency proposing questions about sexual orientation and gender identity
The U.S. Census Bureau is seeking public comment on a proposed test of sexual orientation and gender identity questions on the American Community Survey. The test would begin this summer and continue into next year.
The Census Bureau published the request as a Federal Register notice. In its press release the agency noted that the ACS is an ongoing survey that collects detailed housing and socioeconomic data. It allows the Census Bureau to provide timely and relevant housing and socioeconomic statistics, even for low levels of geography.
As part of the process for adding new questions to the ACS, the Census Bureau tests potential questions to evaluate the quality of the data collected.
The Census Bureau proposes testing questions about sexual orientation and gender identity to meet the needs of other federal agencies that have expressed interest in or have identified legal uses for the information, such as enforcing civil rights and equal employment measures.
The test would follow the protocols of the actual ACS — with one person asked to respond to the survey on behalf of the entire household. These particular questions are asked about people 15 years of age or older. Households are invited to respond to the survey online, by paper questionnaire or by phone.
The current Federal Register notice gives the public a final opportunity to provide feedback before the Census Bureau submits its recommendations to the Office of Management and Budget for approval. The public may provide feedback through May 30 online.
The White House
Judy Shepard to receive Presidential Medal of Freedom
Nancy Pelosi is also among this year’s honorees
Beloved LGBTQ advocate Judy Shepard is among the 19 honorees who will receive the Presidential Medal of Freedom, the highest civilian award in the U.S., the White House announced on Friday.
The mother of Matthew Shepard, who was killed in 1998 in the country’s most notorious anti-gay hate crime, she co-founded the Matthew Shepard Foundation with her husband Dennis to raise awareness about anti-LGBTQ violence.
The organization runs education, outreach, and advocacy programs, many focused on schools.
In a statement shared via the Human Rights Campaign, Shepard said, “This unexpected honor has been very humbling for me, Dennis, and our family. What makes us proud is knowing our President and our nation share our lifelong commitment to making this world a safer, more loving, more respectful, and more peaceful place for everyone.
“I am grateful to everyone whose love and support for our work through the years has sustained me.
“If I had the power to change one thing, I can only dream of the example that Matt’s life and purpose would have shown, had he lived. This honor reminds the world that his life, and every life, is precious.”
Shepard was instrumental in working with then-President Barack Obama for passage of the landmark Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act in 2009, which was led in the House by then-Speaker Nancy Pelosi (D-Calif.), who will also be honored with a Presidential Medal of Freedom during the ceremony on Friday.
Also in 2009, Shepard published a memoir, “The Meaning of Matthew: My Son’s Murder in Laramie, and a World Transformed,” and was honored with the Black Tie Dinner Elizabeth Birch Equality Award.
“Judy Shepard has been a champion for equality and President Biden’s choice to honor her with the Presidential Medal of Freedom is a testament to what she’s done to be a force of good in the world,” HRC President Kelley Robinson said in a statement.
“A mother who turned unspeakable grief over the loss of her son into a decades-long fight against anti-LGBTQ+ hatred and violence, Judy continues to make a lasting impact in the lives of the LGBTQ+ community,” she said.
“It is because of her advocacy that the first federal hate crimes legislation became law and that countless life-saving trainings, resources and conversations about equality and acceptance are provided each year by the Matthew Shepard Foundation,” Robinson said. “We are honored that Judy is a member of the HRC family and know that her work to create a more inclusive and just world will only continue.”
Other awardees who will be honored by the White House this year are: Actor Michelle Yeoh, entrepreneur and former New York Mayor Michael Bloomberg, Jesuit Catholic priest Gregory Boyle, Assistant House Democratic Leader Jim Clyburn (D-S.C.), former Labor and Education Secretary and former U.S. Sen. Elizabeth Dole (R-N.C.), journalist and former daytime talkshow host Phil Donahue, World War II veteran and civil rights activist Medgar Evers (posthumous), former Vice President Al Gore, civil rights activist and lawyer Clarence B. Jones, former Secretary of State and U.S. Sen. John Kerry (D-Mass.), former U.S. Sen. Frank Lautenberg (D-N.J.) (posthumous), Olympic swimmer Katie Ledecky, educator and activist Opal Lee, astronaut and former director of NASA’s Johnson Space Center Ellen Ochoa, astronomer Jane Rigby, United Farm Workers President Teresa Romero, and Olympic athlete Jim Thorpe (posthumous).
National
United Methodist Church removes 40-year ban on gay clergy
Delegates also voted for other LGBTQ-inclusive measures
The United Methodist Church on Wednesday removed a ban on gay clergy that was in place for more than 40 years, voting to also allow LGBTQ weddings and end prohibitions on the use of United Methodist funds to “promote acceptance of homosexuality.”
Overturning the policy forbidding the church from ordaining “self-avowed practicing homosexuals” effectively formalized a practice that had caused an estimated quarter of U.S. congregations to leave the church.
The New York Times notes additional votes “affirming L.G.B.T.Q. inclusion in the church are expected before the meeting adjourns on Friday.” Wednesday’s measures were passed overwhelmingly and without debate. Delegates met in Charlotte, N.C.
According to the church’s General Council on Finance and Administration, there were 5,424,175 members in the U.S. in 2022 with an estimated global membership approaching 10 million.
The Times notes that other matters of business last week included a “regionalization” plan, which gave autonomy to different regions such that they can establish their own rules on matters including issues of sexuality — about which international factions are likelier to have more conservative views.
Rev. Kipp Nelson of St. Johns’s on the Lake Methodist Church in Miami shared a statement praising the new developments:
“It is a glorious day in the United Methodist Church. As a worldwide denomination, we have now publicly proclaimed the boundless love of God and finally slung open the doors of our church so that all people, no matter their identities or orientations, may pursue the calling of their hearts.
“Truly, all are loved and belong here among us. I am honored to serve as a pastor in the United Methodist Church for such a time as this, for our future is bright and filled with hope. Praise be, praise be.”
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