The IRS has a way of punishing people for getting married, but the marriage penalty hits gay public employees harder than straight couples. Unlike their straight counterparts, gay workers who place their spouses on employer-provided health insurance have to pay taxes on the benefits that can add up to $3,000 a year. Cambridge, Mass. will use a stipend to refund the “gay marriage penalty” to city workers affected.
The AP reports Cambridge is believed the first municipality to counter the tax snafu.
Despite the feel-good nature of the gesture, some are angry that the city is using its funds to make up for a federal problem. Would you support a similar initiative in your city?
Cambridge, Massachusetts To Pay Wedded Gay Workers To Offset Tax [AP via Huffington Post]