We Don’t Need to Redefine Marriage to Fix Policy Problems

March 13th, 2013

Good public policy can meet the needs of all Americans without redefining marriage.

When the Supreme Court hears oral arguments on the constitutionality of the Defense of Marriage Act (DOMA) later this month, many casual observers will focus on what they call the fairness of redefining marriage. Interestingly, though, the dispute at the heart of the DOMA case could have been avoided had Congress enacted fairer tax reform years ago.

Consider the facts: In 2010, Edith Windsor sued the federal government, demanding a refund on taxes she paid upon inheriting the estate of her same-sex partner.

The couple had obtained a marriage license in Toronto three years earlier. New York state, where they resided at the time, did not grant marriage licenses to same-sex couples. The state did recognize their foreign marriage certificate, but the federal government did not.

And so when her partner died in 2009, Ms. Windsor was forced to pay over $350,000 in federal estate taxes because she didn’t qualify for a marital exemption.

The lawsuit before the Supreme Court, set to be heard on March 27, seeks to strike down the section of DOMA that defines marriage for federal purposes as the union of a husband and a wife. In other words, to avoid this tax burden, the lawsuit seeks to redefine marriage.

Indeed, arguments for redefining marriage frequently hinge on questions of government benefits to same-sex couples. But more sensible solutions are possible. As this case shows, society can remove this burden without rushing to abolish marriage as the union of a man and a woman.

The Heritage Foundation has argued for eliminating the estate tax, popularly called the “death tax,” for more than fifteen years. In an influential 1996 report, Heritage argued that such reform was in line with the American dream and sense of justice. Tax law should not discourage savings and investment, nor punish hard work and thrift. Nor should it encourage Americans to consume now in order to avoid passing on wealth to loved ones because they would be taxed.

Killing the death tax would encourage economic growth, add jobs, and allow offices and factories to buy equipment that elevates productivity and wages. Lower capital costs mean new small businesses.

Best of all, such tax reform would treat all Americans fairly.

Read more at Public Discourse.