\-\-\-\--Original Message\-\-\-\--

From: Sue Ward
\[[[mailto:susanwardnewyork@yahoo.com]{.underline}](mailto:susanwardnewyork@yahoo.com)\]

Sent: Tuesday, March 15, 2005 10:18 AM

To: comments

Subject: current tax system unfair to same-sex couples

Adverse Tax Consequences for Same-Sex Couples

1\. Health Insurance for Partners : Employees pay income and payroll

tax on the health insurance premiums their employers provide for
domestic partners who do not otherwise qualify as dependents. Benefits
for different-sex spouses are not subject to this tax.

2\. Flexible Spending Accounts : Employees can use flexible spending

accounts to pay for a different-sex spouse\'s medical expenses,
including eyeglasses, prescriptions, and co-pays, on a pre-tax basis.
These accounts cannot be used for a same-sex partner, or even a same-sex
spouse.

3\. Retirement Savings : Tax treatment of retirement savings, such as

those found in 401(k) plans, privileges spouses and penalizes same-sex
couples. This means that on the death of a partner, the surviging
partner is faxed with an unfair tax bill. This problem is made even more
acute by the fact that same-sex couples are denied survivors\' benefits
under Social Security, even though they pay the same payroll taxes as
heterosexual workers.

4\. Estate and Gift Taxes - Strangers Under the Law: Different-sex

spouses get a complete exemption from estate and gift taxes. But
same-sex partners, even ones who are married in Massachusetts or parties
to civil unions in Vermont, are treated as strangers under the tax code.
So when a partner dies, their estate is subject to taxation.

Social Security - Adverse Consequences for Same-Sex Couples

1\. Equal Contribution, Unequal Benefits: All GLBT people pay into

Social Security on an equal basis with their heterosexual counterparts,
but are not eligible for equal benefits.

2\. No Survivors\' Benefits: Same-sex partners do not receive
survivors\'

benefits when a partner dies, even though they pay for them equally.

3\. No Disability Benefits: Same-sex partners are not eligible for

spouse\'s benefits when a partner becomes disabled, even though they pay
equally into the program.

4\. Children Are Left Unprotected: Sixty percent of children being

raised by same-sex couples live in a jurisdiction where second-parent
adoption is unavailable, meaning that these children cannot secure a
recognized legal relationship with one of their parents. When a parent
dies without such a legal relationship, the surviving child is not
eligible for surviving child benefits under Social Security, even though
the deceased parent paid into the program, and even if the parent
supported the child for her whole life.

5\. Even When a Child is Legally Adopted by Same-Sex Partner, Benefits

are STILL Unavailable: Social Security provides \"surviving parent\"
benefits to the parent caring for a minor child when the other parent
dies. But all children raised by same-sex couples are excluded from this
benefit, even though their parents pay equally into Social Security,
because it is only given to couples who are recognized as \"spouses\"
under federal law, which same-sex couples are not. Even though the
benefit is for children and not spouses, children being raised by GLBT
people are denied it because their parents cannot marry.

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**Adverse Tax Consequences for Same-Sex Couples**

1.  **Health Insurance for Partners :**  Employees pay income and
    payroll tax on the health insurance premiums their employers provide
    for domestic partners who do not otherwise qualify as dependents.
    Benefits for different-sex spouses are not subject to this tax.

2.  **Flexible Spending Accounts :**  Employees can use flexible
    spending accounts to pay for a different-sex spouse\'s medical
    expenses, including eyeglasses, prescriptions, and co-pays, on a
    pre-tax basis. These accounts cannot be used for a same-sex partner,
    or even a same-sex spouse.

3.  **Retirement Savings :**  Tax treatment of retirement savings, such
    as those found in 401(k) plans, privileges spouses and penalizes
    same-sex couples. This means that on the death of a partner, the
    surviging partner is faxed with an unfair tax bill. This problem is
    made even more acute by the fact that same-sex couples are denied
    survivors\' benefits under Social Security, even though they pay the
    same payroll taxes as heterosexual workers.

4.  **Estate and Gift Taxes - Strangers Under the Law:**  Different-sex
    spouses get a complete exemption from estate and gift taxes. But
    same-sex partners, even ones who are married in Massachusetts or
    parties to civil unions in Vermont, are treated as strangers under
    the tax code. So when a partner dies, their estate is subject to
    taxation.

**Social Security - Adverse Consequences for Same-Sex Couples**

1.  **Equal Contribution, Unequal Benefits:**  All GLBT people pay into
    Social Security on an equal basis with their heterosexual
    counterparts, but are not eligible for equal benefits.

2.  **No Survivors\' Benefits:**  Same-sex partners do not receive
    survivors\' benefits when a partner dies, even though they pay for
    them equally.

3.  **No Disability Benefits: ** Same-sex partners are not eligible for
    spouse\'s benefits when a partner becomes disabled, even though they
    pay equally into the program.

4.  **Children Are Left Unprotected: ** Sixty percent of children being
    raised by same-sex couples live in a jurisdiction where
    second-parent adoption is unavailable, meaning that these children
    cannot secure a recognized legal relationship with one of their
    parents. When a parent dies without such a legal relationship, the
    surviving child is not eligible for surviving child benefits under
    Social Security, even though the deceased parent paid into the
    program, and even if the parent supported the child for her whole
    life.

5.  **Even When a Child is Legally Adopted by Same-Sex Partner, Benefits
    are STILL Unavailable:  **Social Security provides \"surviving
    parent\" benefits to the parent caring for a minor child when the
    other parent dies. But all children raised by same-sex couples are
    excluded from this benefit, even though their parents pay equally
    into Social Security, because it is only given to couples who are
    recognized as \"spouses\" under federal law, which same-sex couples
    are not. Even though the benefit is for children and not spouses,
    children being raised by GLBT people are denied it because their
    parents cannot marry.

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