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.”
The Comings & Goings column is about sharing the professional successes of our community. We want to recognize those landing new jobs, new clients for their business, joining boards of organizations and other achievements. Please share your successes with us at [email protected].
Congratulations to Gil Pontes III on his recent appointment to the Financial Advisory Board for the City of Wilton Manors, Fla. Upon being appointed he said, “I’m honored to join the Financial Advisory Board for the City of Wilton Manors at such an important moment for our community. In my role as Executive Director of the NextGen Chamber of Commerce, I spend much of my time focused on economic growth, fiscal sustainability, and the long-term competitiveness of emerging business leaders. I look forward to bringing that perspective to Wilton Manors — helping ensure responsible stewardship of public resources while supporting a vibrant, inclusive local economy.”
Pontes is a nonprofit executive with years of development, operations, budget, management, and strategic planning experience in 501(c)(3), 501(c)(4), and political organizations. Pontes is currently executive director of NextGen, Chamber of Commerce. NextGen Chamber’s mission is to “empower emerging business leaders by generating insights, encouraging engagement, and nurturing leadership development to shape the future economy.” Prior to that he served as managing director of The Nora Project, and director of development also at The Nora Project. He has held a number of other positions including Major Gifts Officer, Thundermist Health Center, and has worked in both real estate and banking including as Business Solutions Adviser, Ironwood Financial. For three years he was a Selectman, Town of Berkley, Mass. In that role, he managed HR and general governance for town government. There were 200+ staff and 6,500 constituents. He balanced a $20,000,000 budget annually, established an Economic Development Committee, and hired the first town administrator.
Pontes earned his bachelor’s degree in political science from the University of Massachusetts, Dartmouth.
Kansas
ACLU sues Kansas over law invalidating trans residents’ IDs
A new Kansas bill requires transgender residents to have their driver’s licenses reflect their sex assigned at birth, invalidating current licenses.
Transgender people across Kansas received letters in the mail on Wednesday demanding the immediate surrender of their driver’s licenses following passage of one of the harshest transgender bathroom bans in the nation. Now the American Civil Liberties Union is filing a lawsuit to block the ban and protect transgender residents from what advocates describe as “sweeping” and “punitive” consequences.
Independent journalist Erin Reed broke the story Wednesday after lawmakers approved House Substitute for Senate Bill 244. In her reporting, Reed included a photo of the letter sent to transgender Kansans, requiring them to obtain a driver’s license that reflects their sex assigned at birth rather than the gender with which they identify.
According to the reporting, transgender Kansans must surrender their driver’s licenses and that their current credentials — regardless of expiration date — will be considered invalid upon the law’s publication. The move effectively nullifies previously issued identification documents, creating immediate uncertainty for those impacted.
House Substitute for Senate Bill 244 also stipulates that any transgender person caught driving without a valid license could face a class B misdemeanor, punishable by up to six months in jail and a $1,000 fine. That potential penalty adds a criminal dimension to what began as an administrative action. It also compounds the legal risks for transgender Kansans, as the state already requires county jails to house inmates according to sex assigned at birth — a policy that advocates say can place transgender detainees at heightened risk.
Beyond identification issues, SB 244 not only bans transgender people from using restrooms that match their gender identity in government buildings — including libraries, courthouses, state parks, hospitals, and interstate rest stops — with the possibility for criminal penalties, but also allows for what critics have described as a “bathroom bounty hunter” provision. The measure permits anyone who encounters a transgender person in a restroom — including potentially in private businesses — to sue them for large sums of money, dramatically expanding the scope of enforcement beyond government authorities.
The lawsuit challenging SB 244 was filed today in the District Court of Douglas County on behalf of anonymous plaintiffs Daniel Doe and Matthew Moe by the American Civil Liberties Union, the ACLU of Kansas, and Ballard Spahr LLP. The complaint argues that SB 244 violates the Kansas Constitution’s protections for personal autonomy, privacy, equality under the law, due process, and freedom of speech.
Additionally, the American Civil Liberties Union filed a temporary restraining order on behalf of the anonymous plaintiffs, arguing that the order — followed by a temporary injunction — is necessary to prevent the “irreparable harm” that would result from SB 244.
State Rep. Abi Boatman, a Wichita Democrat and the only transgender member of the Kansas Legislature, told the Kansas City Star on Wednesday that “persecution is the point.”
“This legislation is a direct attack on the dignity and humanity of transgender Kansans,” said Monica Bennett, legal director of the ACLU of Kansas. “It undermines our state’s strong constitutional protections against government overreach and persecution.”
“SB 244 is a cruel and craven threat to public safety all in the name of fostering fear, division, and paranoia,” said Harper Seldin, senior staff attorney for the ACLU’s LGBTQ & HIV Rights Project. “The invalidation of state-issued IDs threatens to out transgender people against their will every time they apply for a job, rent an apartment, or interact with police. Taken as a whole, SB 244 is a transparent attempt to deny transgender people autonomy over their own identities and push them out of public life altogether.”
“SB 244 presents a state-sanctioned attack on transgender people aimed at silencing, dehumanizing, and alienating Kansans whose gender identity does not conform to the state legislature’s preferences,” said Heather St. Clair, a Ballard Spahr litigator working on the case. “Ballard Spahr is committed to standing with the ACLU and the plaintiffs in fighting on behalf of transgender Kansans for a remedy against the injustices presented by SB 244, and is dedicated to protecting the constitutional rights jeopardized by this new law.”
National
After layoffs at Advocate, parent company acquires ‘Them’ from Conde Nast
Top editorial staff let go last week
Former staff members at the Advocate and Out magazines revealed that parent company Equalpride laid off a number of employees late last week.
Those let go included Advocate editor-in-chief Alex Cooper, Pride.com editor-in-chief Rachel Shatto, brand partnerships manager Erin Manley, community editor Marie-Adélina de la Ferriére, and Out magazine staff writers Moises Mendez and Bernardo Sim, according to a report in Hollywood Reporter.
Cooper, who joined the company in 2021, posted to social media that, “Few people have had the privilege of leading this legendary LGBTQ+ news outlet, and I’m deeply honored to have been one of them. To my team: thank you for the last four years. You’ve been the best. For those also affected today, please let me know how I can support you.”
The Advocate’s PR firm when reached by the Blade said it no longer represents the company. Emails to the Advocate went unanswered.
Equalpride on Friday announced it acquired “Them,” a digital LGBTQ outlet founded in 2017 by Conde Nast.
“Equalpride exists to elevate, celebrate and protect LGBTQ+ storytelling at scale,” Equalpride CEO Mark Berryhill said according to Hollywood Reporter. “By combining the strengths of our brands with this respected digital platform, we’re creating a unified ecosystem that delivers even more impact for our audiences, advertisers, and community partners.”
It’s not clear if “Them” staff would take over editorial responsibilities for the Advocate and Out.
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