The federal Defense of Marriage Act, up for U.S. Supreme Court review, creates economic inequities and unfair tax burdens and is bad for business, the CEOs of the Seattle Metropolitan Chamber of Commerce and Greater Boston Chamber of Commerce argue in an opinion piece.
“Both our chambers see marriage equality as a series of big pluses — from attracting and keeping the best and brightest employees, to adding to the economy’s bottom line,” Maud Daudon (Seattle) and Paul Guzzi (Boston) wrote in the Boston Herald.
The two argued a business advantage case in Massachusetts’ most conservative newspaper.
“As leaders of vibrant Chambers of Commerce representing both coasts, we are deeply proud of our states’ marriage equality laws but increasingly troubled by the economic inequities created by the U.S. Defense of Marriage Act, which penalizes both our employees and married same-sex employees,” write Daudon and Guzzi.
“With DOMA now on the spring docket of the U.S. Supreme Court we hope that once and for all, this antiquated and costly law will be abolished.”
The Defense of Marriage Act was passed in 1996, with bipartisan support, and signed into law by President Bill Clinton. It denies federal recognition, as well as tax and estate benefits, to same-sex couples even if legally married in the states where they reside. DOMA allows non-marriage-equality states to refuse recognition to same-sex couples who have been legally wed elsewhere.
The Obama administration, in a legal brief, has urged the Supreme Court to overturn a key section of DOMA. The Supremes will hear oral arguments later this month. Several lawmakers who voted for DOMA, including Washington’s Sen. Patty Murray, have signed on to legislation that would repeal it.
Daudon and Guzzi make a dollars-and-sense case, and map how corporations have become active on social issues. They write:
– “In Washington state, which upheld its marriage equality law in November, the business support was unprecedented. Embraced as a core value for both employees and customers, nearly 500 businesses joined the campaign. They ranged from small mom-and-pop shops to iconic brands.”
– “In Massachusetts, there’s simply no question that same-sex marriage has promoted an image that Boston is an attractive, welcoming and exciting place to work and to live. But for the business community, DOMA is both an administrative headache and an added cost.”
– “Because of DOMA, the federal government does not recognize same-sex marriages, requiring human resource departments to keep two sets of records, one for married employees with same-sex spouses, and a set for everyone else. And for companies that want to attract and retain talent, it costs more to extend equal benefits to same-sex employees.”
– “DOMA means that health care benefits for same-sex spouses and their families are taxable, both to the employee and employer. For employees, that’s an average of over $1,000 eachyear. And because DOMA treats health care benefits for same-sex employees as taxable income, it results in higher taxes for the employer as well.”
Massachusetts in 2004 became the first state in the nation to allow same-sex couples to marry. Eight states and the District of Columbia have followed, with Washington, Maryland and Maine voting for marriage equality in last November’s election.
In Massachusetts, according to Daudon and Guzzi, “The additional tax burdens placed on couples exceeds $10,000, with businesses swallowing tens or even hundreds of thousands of dollars in taxes simply because DOMA makes health care benefits taxable income for married same-sex couples.”
Visa rights for spouses are also unavailable to married same-sex couples, according to the two Chamber CEOs, a penalty being felt because companies “often require or need employees to temporarily relocate in today’s global marketplace.
“Even relocating or transferring employees with same-sex spouses between two different states domestically is a challenge for companies and attracts a personal cost to employees and a financial cost to business,” write Daudon and Guzzi.
More than 100 businesses, including such major names as Goldman Sachs, Nike and eBay have signed onto a brief asking the Supreme Court to rule against the Defense of Marriage Act. Washington Attorney General Bob Ferguson has signed onto a similar brief.