Waging a war on taxes isn’t new for Americans, but the fight over equal taxation isn’t just about big or small government. For many same-sex couples in the United States, it’s about equality and justice.
In honour of those principles, Yale University will now offset a federal tax that gay and lesbian employees have to pay on their partners’ health coverage.
Tax season is hardly considered enjoyable, but it can be especially upsetting for same-sex couples that have to pay more because of their sexuality. Same-sex marriage was legalized in Connecticut in November 2008, but it’s not recognized under federal law in the United States so a domestic partner’s benefits are considered taxable income.
The university felt the federal tax charge created an inequality for same-sex spouses, said Hellen Hom-Diamond, Yale’s director of campus communications.
Compensation and benefits director Hugh Penney announced in an email that the school will reimburse $1,500 per year to address the difference in the federal benefit taxation plan.
It will “help ameliorate the hardship this discrepancy in federal tax law has caused them,” Hom-Diamond said.
This year, close to 60 faculty and non-unionized staff members will receive the reimbursement.
“We worked very closely with the LGBTQ staff affinity group, in first recognizing the issue and, then creating this tax reimbursement,” Hom-Diamond said.
While the reimbursement is a step forward for Yale’s gay and lesbian staff community, not all same-sex employees will reap the benefits.
Changes in unionized benefits need to be negotiated with the unions, so the benefit is not being extended to all employees, Hom-Diamond said.
Yale joins a small group of universities like Syracuse University and Bowdoin College who have stepped in to help with this federal tax.
Since Carleton’s pay and compensation is under Canadian tax law, it’s not facing the same challenges as American universities.
Carleton’s faculty is eligible for health and dental, regardless of whether or not they’re in a same-sex or opposite-sex relationship, said Michelle Lewis, assistant director of employee services at Carleton.
“It’s not relevant for our benefits.”
