Wait…A Gay Tax? How Did I Not Know About This?
March 5th, 2009 by Wendie
A couple of months ago, I read a New York Times article about famed photographer Annie Leibovitz’s financial woes. She was borrowing tons of money and using the rights to her photographs as collateral-basically she’s in serious financial distress. I could not fathom how such an acclaimed artist could be in such a hole. Now, I get it.
Annie’s partner, writer Susan Sontag, passed away in 2004 and left her entire estate to Leibovitz. Apparently, this has put her in a position of huge financial strain:
Same-sex couples do not have the same privileges as straight married couples when it comes to inheritance. If your partner passes away and leaves her estate to you, you have to pay up to 50 percent of the value of your inheritance in taxes. However, if you and your partner were recognized as a married couple, you wouldn’t have to pay a dime.
So basically, Annie has gone into huge debt in an attempt to hold onto these properties and assets. I had no idea about this aspect of the importance of the legalization of gay marriage and I am ashamed at my naivety. I just really…Did. Not. Know.
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Poor Annie, first having to deal with the lost of her loved one now this. It makes me so furious that same sex couples get the short end of the stick. Just because someone says it’s moraly wrong to be married and to have the same rights as me and my husband.
wow…that’s just so… ridiculous. what the feck is wrong with this country…? that poor woman.
I don’t get it..
In many countries there is a ‘Common Law Spouse’ provision (like a de-facto relationship) where if you can prove that you were in a committed financially dependent relationship, then the courts will see the property as joint and no tax will have to be paid.
Why is the US not doing this?
Because the govt just wants to get it’s grubby paws on free money any way it can. Straight unmarried couples have the same issue. If you live with a man for 15 years and he dies it’s like you never existed.
Sad sad sad.
Wendie, you are so right. I heard about Annie’s problems not long ago. I am an accountant and gay and I, too, live in a state whereby there is an inheritance tax. It is so unfair because the amount of tax you pay is based upon your relationship to a person, i.e. spouse, child, cousin, friend, etc. It sucks because even though your same-sex partner IS your spouse, the law only sees them as a non-blood relative.
Just to give a little more education on the subject, gay couples (of which I am one half) also get screwed every year when paying taxes. My girlfriend and I pay about $10K more in taxes PER YEAR than we would if we were able to file as married, instead of single. How’s that for getting hosed?
Yep, it sucks in a big way. It’s a very sad and very hateful violation of human rights.
Don’t forget the awesome steps it takes to adopt a child as a same-sex couple! It’s often easier to adopt them as a single parent.
I think if more people knew about these inequities same sex marriage laws would start to pass in this country. First on a state level and eventually on a federal level.
Thanks for talking about it!
Hey ladies of evilbeet, I love you for your support of equal rights in general and same sex marriage in particular. You guys always keep it real, which is why I heart this blog. Go girls!
I love that your avatar resembles the gay symbol – serendipity?
:)
That is complete bullshit. Fuck the government…
I wish mormons from Utah are reading this. Way to go! You just wanna pat yourself on the back now, dontcha?
I *hope*
Oh, how happy I am to live in Denmark.
That is some fucked up shit!
That’s why when uninformed people say gay couples get all the same rights as married as “domestic partners” I want to strangle them. I’m straight and unmarried but have been with my boyfriend for 8 years, living together for 6 of them and for me to be on his benefits as a domestic partner, he would pay $400 a month in “taxes” or what they call imputed income. Money taken directly out of his check that he’ll never see. If we were married, his out of pocket premium would cost him the same for both of us as it does just for him individually. So the same rights to some basic things may be offered but they’re certainly not equal.
Not trying to be a jerk Beet but you are totally missing the point of the law – originally, every person that inherited property (whether real/personal) had to pay a “death tax” that was usually about 50% of the estate they inherited. The only changes Republicans could get the Democrats to consent to were to make exemptions to death taxes for married couples and charities. And actually this tax break will be repealed in 2011 b/c the Democrat Congress over the last 3 years has refused to extend it anymore. So soon enough married and nonmarried individuals will have to pay death taxes on anything they inherit (which is insane b/c it is double, even triple, taxing the original asset).
The law was NEVER passed with the intent to punish same-sex couples – if you are going to be angry with anyone it should be the Democrat Congressmen b/c the Republican party supports doing away with ALL death taxes to EVERYONE.
PS. Annie’s significant other had a TERRIBLE estate lawyer because all of the tax liabilities could have been avoided by setting up a living trust.
I didn’t write this piece.
Ohhhh lo siento…sometimes I can’t tell which one of the 3 of you wrote the piece :)
That’s gotta be a guy.
I thought this was going to be about Dog the Bounty Hunter Chapman (ew).
Poor Annie? PLEASE! This is a woman who is SO rich she doesn’t need to ‘come out’. This is the woman who photographs celebrities and George Bush and his cabinet as HEROES OF THE GULF WAR! I’m sorry but I have not one iota of sympathy for this super rich apolitical photographer. Susan Sontag and her relationship was a well known open secret but why was it a secret at all? Has she ever spoken out for LGBT causes? Has she ever donated any of her overpriced commercial work to LGBT causes? NOT to my knowledge. The super rich don’t have to! Of course there should be equal rights. OF course she should not be penalized! But in my opinion she is getting her just desserts!
We live in a truly messed up country. Hopefully one day we can achieve equal HUMAN rights that allow for not only gay marriage, but for gay rights across the board. There are so many things we are not educated about, and the more I learn about the inequality in our country the more saddening and sickening it is.