Domestic Partnership Taxes

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Published on December 17th, 2007, 10:26 am
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Domestic Partnerships are the backbone of the majority of America's excuse in the argument to disallow gay marriage. At face value it seems like a great alternative for moderates, who agree to offer the same benefits to those individuals who fall under the label Domestic partnership in lieu of marriage. Separate but equal is still fair to all, and it is after all just a label, right?

This is a label that often includes children, and spouses, real people. While many people associate the "label" of Domestic Partner as that of one synonymous with gay and lesbian individuals, it can, and often includes heterosexual couples as well. I mean after-all, why should someone be "forced" into a legal agreement only just to "call" yourself "married"?

Earlier this year, my company who went through a review and audit of our company health care plan found my spouse and myself in a "domestic partnership" rather then marriage. Indeed, there is no legal agreement between the two of us, but we do consider ourselves "married". We have two kids, a mortgage, and a dumb Labrador retriever who loves table scraps, all in all- we're pretty normal, and it's no big deal to us, so why should it be to my employer? Except it isn't.

My family is entitled to the same great health-care plan under the classification of "Domestic Partnership", as my married co-workers, and this in turn allows my company to brag, and proudly say they're a diverse company, but what no one is going to tell you is how much more this "label" is going to cost you. At first glance, it appears that a health care premium is the exact same for a married family, as it is for individuals who get classified as a "domestic partnership." But, that's where it ends. The problem is this. As Married, you receive the health-care as a "benefit", as a domestic partner you receive health care as "income". The company then subsequently tosses up there hands and says "there's nothing they can do" when you get the tab for this "income on your taxes. Yes, you know that 10,000 dollars that my supposed company is paying for the health care? Well, according to them, and the US Government, I am now responsible for that money as if I had handed me a pile of money and said "Go Wild". In fact, it's as though I earned that money on my paycheck. Yes that's right, I'm being taxed on my company's proportion of their health-care contribution, while my married counterpart isn't.

For those of you with a financial buffer, being taxed an addition 10 G's may not seem like a financial burden, but when your annual salary is only about 20,000 a year, you can clearly see that this asinine situation leaves me punished, and penalized merely because of my relationship.

According to a recent report by the Center for American Progress, those who fall into the classification of "Domestic Partnership" will be taxed on average $1069 more then their "Married" counterparts. Now that's gay.

Now certainly my "Diverse" and "Friendly" employer, could step up to the plate, and offer to pay these taxes, or they could lobby congress and be good stewards to their employees. After all, a few billion dollar "diverse" companies complaining to congress could certainly make some waves, but why would they? They're assuming our stupidity. They'll use excuses such as "Most companies don't even extend benefits to unmarried partners of employees", but let be honest; they don't want it to change. The less people that can afford the health care, means less expense to them, and that's the bottom line.

Look, I don't want some unfair advantage I just want equal taxes and equal benefits that allow me to put food on the table to my children, and also have health care for when they're sick? Is that too much to ask? If American can base their Independence on taxed tea, surely I can claim foul in the year 2007 when I'm the victim of taxation without medication?

We are a country of separationists. The great excluders. In fact I'm certain a good many of you reading this see nothing wrong with treating one group different then another. After all if it doesn't effect me, then it's not important. Hopefully one day, we can look back and say that we were barbaric and neanderthals. On that day we will look back at history and be thankful that indeed "We" weren't that black slave, or that Jew in Germany, or that witch being burned at the stake. Only then will we realize how much we as a society really care for one another.
May the fetus you save be gay.
December 17th, 2007, 10:26 am
 
Liv wrote: Separate but equal is still fair to all, and it is after all just a label, right?


Paging the 1950's...
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December 17th, 2007, 10:30 am
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Sanjuro
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Our company finally announced last week that it would be providing coverage for domestic partnerships and other alternatives like kids raised by grandparents, etc. I wonder if its the same deal as yours... hmmm...
John Cleese: The audience is too uninformed. I blame the Americans. Nation of obese, violent, pig-ignorant, bible-thumping morons contaminating world culture. That’s why I spend most of my time here in France.. Beautiful isn’t it? Just look at those olive trees.

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December 17th, 2007, 10:33 am
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Sanjuro wrote:Our company finally announced last week that it would be providing coverage for domestic partnerships and other alternatives like kids raised by grandparents, etc. I wonder if its the same deal as yours... hmmm...


My understanding is that it's the government that doesn't recognize it.... but of course the company "can" pick up the tab, so I'd assume it's the same.
May the fetus you save be gay.
December 17th, 2007, 10:35 am
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Thanks for the post! I need to check in with my brother. He carries his partner on his insurance through work, and knowing him, he prolly hasn't paid much attention to his "benefits" other than the fact he has 'em.
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December 17th, 2007, 11:00 am
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I just asked HR.. we will see...
John Cleese: The audience is too uninformed. I blame the Americans. Nation of obese, violent, pig-ignorant, bible-thumping morons contaminating world culture. That’s why I spend most of my time here in France.. Beautiful isn’t it? Just look at those olive trees.

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December 17th, 2007, 11:13 am
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For the truth about gay marriage check out our trailer. Produced to educate & defuse the controversy it has a way of opening closed minds & creates an interesting spin on the issue: http://www.OUTTAKEonline.com
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December 17th, 2007, 11:19 am
Charlotte
 
If youare being taxed on the 10000 of benefis you received then I would think if you itemized then you'd see that basically wiped out if your income is less than 30,000. I'm no tax lawyer but I suspect if your medical bills are more than a certain amount then you can deduct the amount over a cetain limit on your taxes.
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December 17th, 2007, 11:30 am
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Still not fair.
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December 17th, 2007, 3:04 pm
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Just found out our company does the same thing. Its an 'after tax' thing. Now since I asked of course, everyone will be gossiping about me :lol:
John Cleese: The audience is too uninformed. I blame the Americans. Nation of obese, violent, pig-ignorant, bible-thumping morons contaminating world culture. That’s why I spend most of my time here in France.. Beautiful isn’t it? Just look at those olive trees.

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December 17th, 2007, 3:07 pm
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A big hurdle to be faced is who defines the "partnership".

If it were the state or fed, or even the IRS then it would be much easier to keep up with. But since there is no official government classification/recognition, the IRS get their full cut.

I have a question and I ask this because I simply don't know. Example:

Let's say Ed and Jim are domestic partners. Ed works for a company that offers domestic partner coverage. Ed and Jim have a spat. Ed says they are done. Jim says they are not. How does Ed drop Jim off his insurance? If it were a married couple, by current definition, divorce papers or other proof would be required to drop a spouse off the insurance if it wasn't during an enrollment period.

Does Ed have a whole lot of power over Jim's benfits?
December 17th, 2007, 3:15 pm
Matt
 
I think it's always up to the person being employeed. Atleast it should be. I mean that's how life insurance is. I can bestow it on anyone I want, and it's a benefit of working for the company. I mean I think it's safe to say on health insurance, that if the spouse or partner shares the same address and the employee wishes for them to be covered, then they "should".
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December 17th, 2007, 3:31 pm
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Matt wrote:I have a question and I ask this because I simply don't know. Example:

Let's say Ed and Jim are domestic partners. Ed works for a company that offers domestic partner coverage. Ed and Jim have a spat. Ed says they are done. Jim says they are not. How does Ed drop Jim off his insurance? If it were a married couple, by current definition, divorce papers or other proof would be required to drop a spouse off the insurance if it wasn't during an enrollment period.


I'd venture that whatever the company requires as proof of the partnership would be used. Example: Ed had to provide documentation that they shared a home in order to get him on the insurance, so then to take him off the insurance, Ed would have to provide documentation that they no longer shared a home. I dunno what companies ask for in order to have a partner added.
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December 19th, 2007, 8:09 am
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The more I thought about it, since it's after-tax, I'm betting he could pretty add or drop at will on month-to-month basis. It would be like going out and buying the policy as an individual.
December 19th, 2007, 8:39 am
Matt
 

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