Friday, June 10, 2011
Log Cabin Champion Senator Susan Collins Sponsors Bill to End Tax Penalty on Employer Funded Health Benefits
"Once again, Senator Collins is championing the freedom of all Americans by standing up for common sense reforms. As the repeal of 'Don't Ask, Don't Tell' will remove an unnecessary and unwanted burden from our nation's military, the Tax Parity for Health Plan Beneficiaries Act will remove unfair and unnecessary burdens from American businesses," said R. Clarke Cooper, Log Cabin Republicans Executive Director. "We need pro-growth policies to give businesses and entrepreneurs renewed confidence in our economy and to remove Washington as the roadblock to job creation. Unfortunately, the federal tax code is punishing the business community for providing their gay and lesbian workers with standard employee benefits. Congress can help private sector growth by eliminating the domestic partner penalty."
"In order to remain competitive and keep and attract good employees, more than half of the largest and most successful companies in our country currently provide health coverage to their employees' domestic partners. Our legislation would simply prevent these benefits from being unfairly taxed" said Senator Collins.
Cooper continues, saying "Companies like American Airlines, Dow Chemical, and Mass Mutual have stepped up to promote this issue, and we will continue working with them to ensure pro-business legislation gets enacted. We are grateful to Senator Collins for her pro-business and pro-equality leadership."
Under current law, when a company provides health benefits to an employee's spouse and dependents, the value of the entire premium is considered a tax-free fringe benefit. But if the company elects to offer a health plan that covers a domestic partner, the partner's portion of the insurance premium is treated as taxable income. The Tax Parity for Health Plan Beneficiaries Act would fix this provision in the tax code so that all domestic partners who are covered by their partner's employer-based health plan are no longer treated differently.