Wednesday, June 26, 2013

Taxing Same-Sex Marriage

Uncle Sam is expected to profit from the spread of same-sex marriage. (Divorce is another matter.) Upper-income couples could see their federal income tax bill grow thousands of dollars bigger.

One possible result: increased demand for tax-sensitive investment guidance.


Jim Gust said...

Those "profit" numbers are pretty sketchy. Are there really so many gay couples in which one partner is on food stamps and the other has so much money that they lose eligibility upon marriage? Doubtful. And if true, why would they marry?

The addition of gay partners to the federal benefit rolls will dwarf any purported revenue gains. That was one reason basic reason for DOMA--no one could find the tax offsets sufficient to cover the costs.

JLM said...

Most gays I've known do OK financially, though a few may have ended up on food stamps because they lacked money-management skills.

Still, Jim is probably right about the long run. Increases in payouts from Social Security and other benefit sources will outweigh revenue gains from the "marriage penalty."