NCPA - National Center for Policy Analysis

SAME SEX "MARRIAGE" WOULD BE COSTLY

May 18, 2004

Employers, insurance companies, consumers and the government would foot the bill for the financial benefits that homosexuals would gain if same-sex "marriage" is legalized nationally. Insurance and tax costs would drop for the partners, while spousal benefits would increase, say observers.

  • Currently, employees who receive the benefits for domestic partners pay taxes on them. Legalized "marriage" for same-sex couples would eliminate the tax.
  • Any higher costs for employers would be passed on to consumers as higher prices for products and services.
  • The costs for employers would include more expensive insurance as insurers raise rates to cover the new beneficiaries and protect their bottom lines.
  • A General Accounting Office report lists 1,138 federal laws in which marital status conveys benefits, rights or privileges. The benefits include Social Security, disability payments, food stamps, Medicare and welfare.
  • Health care and retirement benefits for domestic partners of federal employees would cost the government about $1.4 billion from 2004 to 2013, according to a Congressional Budget Office report.
  • The exact cost to the government if same-sex "marriage" benefits were extended nationally has not been tallied, although government officials say it would be high.

Same sex marriage would undoubtedly have a significant impact on the budget through lower revenues and higher spending, according to White House spokesman Trent Duffy.

Source: Tom Ramstack, "Same-sex 'marriage' likely to prove costly," Washington Times, May 18, 2004.

 

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