Same-Sex Marriage Means Tax Windfall for States

By Elaine S. Povich, Stateline – The U.S. Supreme Court’s decision legalizing same-sex marriage could result in a financial windfall of up to $184.7 million annually in state and local tax revenue, as gays and lesbians head to the altar, creating a boom in the wedding industry and in the taxes that accompany the revved-up business. That’s the projection from the Williams Institute at the UCLA School of Law, which has been tracking the effect of same-sex unions on states since 2001. After the apparent rush to the altar levels off, however, the long-term revenue implications for states could be less obvious. A wide variance in state tax laws makes it difficult to calculate the effect a greater number of married couples would have on revenue from taxes on incomes, estates and properties. Joint income-tax filings, for instance, could raise couples’ tax burdens if both partners are working or...

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