The Labor Supply and Tax Revenue Consequences of Federal Same-Sex Marriage Legalization

Revisiting the Income Tax Effects of Legalizing Same-Sex Marriages

“…Our negative result is comparable to the results obtained by Stevenson () when he assumes an instantaneous penalty; his estimation based on the assumption of an endogenous penalty is larger, but still modest.…”

“…The CBO (2004) revised this estimate to $400 million annually to account for the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001, which reduced the marriage tax for many couples. More recently, Stevenson () used individual‐level data rather than a representative household to estimate the annual federal revenue impact of legalization before and after the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) of 2003. Pre‐JGTRRA estimates showed a positive impact of legalization that ranged from $118 million to $231 million when labor responsive is considered; post‐JGTRRA estimates were reduced to a range of $19 million to $39 million…”

“…A change in an individual's filing status from either single or head‐of‐household to married can sometimes trigger an increase in tax liability, referred to as a marriage penalty or a marriage tax ; under other circumstances, it can lead to a decrease in tax liability (a marriage bonus or a marriage subsidy ). There have been several attempts to estimate these income tax effects, notably by Alm, Badgett, and Whittington () and the Congressional Budget Office (CBO; 2004), and more recently by Stevenson (). Alm, Badgett, and Whittington () constructed a representative household to estimate the federal tax consequences in 1997, and concluded that legalization of same‐sex marriage may generate additional revenues to the federal government of as much as $1 billion annually.…”

“…While the CBO (2004) assumed a 100 percent marriage rate of same‐sex couples, Stevenson () considered several potential marriage rates, including those suggested by Badgett () and those that depend upon the demographics of the same‐sex couples.…”

The impacts of LGBT inclusion on business processes: The case of Bulgaria

“…Another example of the cumulative positives of LGBT-friendly practices on marketing and business performance is springing from the legalisation of same-sex marriages. According to Stevenson (2012), the legalisation is creating increased opportunities for the travel and hospitality sector, small businesses such as florists, photographers, caterers, and wedding agencies, among others.…”