House Votes to Repeal Anti-Gay Death Tax

WASHINGTON–The Republican-led House of Representatives voted to repeal the federal estate tax – known as the death tax – moving a step closer to lifting a heavy, discriminatory burden on gay and lesbian families across the country.

“This is a major step forward in something positive and tangible for gay and lesbian Americans everywhere,” said Rich Tafel, executive director of Log Cabin Republicans. “Until we repeal this discriminatory tax, gay Americans will continue to face hardship and possible bankruptcy at the moment of greatest need – when a loved one dies.”

The bill, HR 8, which repeals the tax over 10 years, passed the House on a vote of 274-154. While 215 Republicans voted for repeal and were joined by 58 Democrats and one independent, another 150 Democrats voted with 3 Republicans and one independent to keep the tax in place.

Under current federal tax law, when a gay or lesbian spouse dies, his or her estate is taxed at a rate of up to 55% before it is passed on to the surviving spouse. When the second spouse dies, the remaining estate is taxed again up to 55% before it can be passed on to any children.

Because gay and lesbian couples have no marital benefits or exemptions under current law, they must assemble expensive wills and estate plans to ensure a spouse and family are protected in case of death. The death tax is an added burden which can wipe out savings and pensions and force the immediate sale of a home or closure of a small business. Democratic alternatives which would raise the threshold for the tax would be cancelled out by inflation – in less than a decade by some estimates – leaving millions of people vulnerable again to the devastating effects of the tax within a few years.

“This isn’t about the David Geffens of the world, it’s about average gay and lesbian Americans who deserve fairness,” Tafel said. “If you’re a lesbian couple that owns your own home and runs a small business as your sole source of income, this is about you. If you’re an elderly gay couple with two homes and retirement savings, this is about you. If you’re a 30 year-old lesbian or gay man who started contributing to your 401(k) at age 22, and you plan on owning a home and having a family with your partner, this is about you.”

“This discriminatory tax makes the lack of equal benefits for gay couples even worse,” Tafel said. “Death should not be a basis for taxing anyone. We are committed to this issue, not only to end discrimination in the short term, but to protect generations of gay and lesbian families to come.”

Log Cabin Republicans is the nation’s largest gay Republican organization, with state and local chapters nationwide, a full-time Washington office and a federal political action committee.