More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
James Peron

GET UPDATES FROM James Peron
 

DOMA and the High Cost of Government-Mandated Discrimination

Posted: 11/07/11 06:03 PM ET

Conservatives frequently talk about the cost of regulations. For instance, Freedomworks, a well-known conservative organization, published a piece called The Hidden Cost of Regulation. It said, "Complying with regulations is not cheap," noting that regulations aren't paid for by just corporations, but by "the entire economy." It notes that consumers pay higher prices as well, due to these regulations, and that they "act as a drag on economic growth."

Allow me to add two other points Freedomworks did not mention, but which I believe they would agree with: 1) motives of the regulators do not change costs imposed by the regulations (that is, costs are not lower if the motives of regulators are good); and 2) costs are not changed if regulations are imposed by one political party rather than the other (in other words, the cost of Republican-imposed regulations would be just the same if Democrats had been the guilty party).

With this in mind, let us turn to a set of regulations Republicans put into place, with the claimed motive of "protecting the family": the Defense of Marriage Act (DOMA).

On the surface, DOMA doesn't appear to create new regulations. It says:

In determining the means of any Act of Congress, or of any ruling, regulation, or interpretation of the various administrative bureaus and agencies of the United States, the word "marriage" means only a legal union between one man and one woman as husband and wife, and the word "spouse" refers only to a person of the opposite sex who is a husband or a wife.

It sounds simple, but then some of the worst results come out of the simplest of regulations.

Until DOMA, for the entirety of American history, marriage was defined at the state level. Over the last couple of centuries the federal government and the states have woven a web of rules and regulations around the marriage contract. Until DOMA the federal government accepted state-recognized marriages as valid on the federal level. Now there are federal regulations that don't correspond with the laws in 10 states and the District of Columbia.

Federal regulations control everything from health insurance options to pension plans when it comes to employees. Absent DOMA, an employer in states with marriage equality could treat all married employees the same way. With DOMA, they are forced to establish a dual system of employment where one set of employees is treated one way, and a second set another way, when it comes to federally regulated issues such as taxation and pensions. But, on the state level, employers treat employees identically. Having to comply with DOMA imposes direct regulatory costs on employers.

Don't take my word for it: consider an amicus brief filed in the case of Massachusetts vs. United States Department of Health and Human Services, currently before the U.S. Court of Appeals, First Circuit. A group of 70 corporations, trade organizations and non-profits signed the amicus, including Aetna, Levi Straus, Blue Cross Blue Shield of Massachusetts, CBS, Microsoft, Chubb Corporation, Google, Starbucks, Xerox, Time Warner Cable, the Greater Boston Chamber of Commerce, Retailers Association of Massachusetts and 12 law firms.

In the brief, they lay out precisely what negative impact DOMA regulations have on their ability to do business. They note that the law forces them to impose a "dual regime" for legally married employees: one set of rules for those with opposite-sex spouses and another set for those with same-sex spouses. This requirement "put us, as employers and enterprises, to unnecessary cost and administrative complexity, and regardless of our business or professional judgment forces us to discriminate against a class of lawfully-married employees, upon whose welfare and morale our own success in part depends."

The brief notes that the 10th Amendment "protects certain state powers from federal intrusion" and that states have the "power to regulate marriage." Historically employers "look to state law to determine which employees were married for purposes of administering workplace benefits." But DOMA intrudes with federal regulations on some legal marriages that are different from the norm. The amici note, "Absent DOMA, employers could treat all employees married under the law of any state in a consistent way. Our burden arises because federal law intrudes to conflict with state law, forcing the employer to create two groups of married employees, and to treat one group different from another."

The amici noted that 86 percent of full-time employees have health benefits through their workplace and 74 percent have an employer-provided retirement plan that "are a direct contributor to employee loyalty." Under DOMA requirements, they have to "investigate the gender of the spouses of our lawfully-married employees and then to single out those employees with a same-sex spouse." They are required to tax health-benefits of spouses of gay employees, but not those for the spouses of straight employees. Forcing the company to treat employees in a discriminatory manner harms good will between employer and employee and, when it comes to pension benefits, requires them to ignore the same-sex spouse of an employee who dies -- something employers do not wish to do.

When employers try to compensate gay employees for the higher taxes they must pay, it requires them to pay those employees more than similar straight employees, just so things even out when the paycheck is cut. Social Security and unemployment taxes are based on the income of employees. There is no method for calculating these taxes for health benefits given to an employee's same-sex partner, yet they are obligated to pay the taxes without knowing how to calculate them. They complain, "The I.R.S. declines to provide official guidance, and instead puts the burden (and risk of error) on the employer." This is how it is with simple regulations such as DOMA; they have widespread implications, often unknown or unconsidered when the legislation or regulation is implemented.

Freedomworks wrote: "Continued overregulation will only drag the economy down. On the other hand, pursuing a policy of deregulation, would free up the economy to grow and prosper." I couldn't agree more, and an easy place to start is repeal of DOMA, an unnecessary regulation that intrudes on the powers of the states. Returning to the federalist approach that was pursued in regards to marriage for over two centuries is a deregulation that is long overdue.

Note: A full report on the costs that DOMA imposes on employers and gay employees can be found here.

 
 
 
Conservatives frequently talk about the cost of regulations. For instance, Freedomworks, a well-known conservative organization, published a piece called The Hidden Cost of Regulation. It said, "Compl...
Conservatives frequently talk about the cost of regulations. For instance, Freedomworks, a well-known conservative organization, published a piece called The Hidden Cost of Regulation. It said, "Compl...
 
 
  • Comments
  • 92
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
04:13 AM on 11/29/2011
The costs of no regulation cost us more in health.. safety equality etc.. regulation is a balancing act. regulation prevents corporate abuse and corporate actions in negligent/reckless pursuit of the profit motive from going against the public good. That is if the regulators and their bosses are not bribed and corrupted by the industry's they regulate. Shame on people for trying to mislead the public otherwise.
06:52 AM on 11/09/2011
Could there be more articles about the benefits for same-sex partners? It would be great if something could be put together, in a positive manner, that explains the benefits for families and partners who are committed to each other. For example, DOS and DHS (and some other fed agencies, as well as state ones too) provide a number of benefits to same-sex partners and their children, including housing, travel and other allowances - on the same "level" as married couples and their families. All worth noting! Who knows, someone out there is reading this stuff, right? And add something about what's not fair, such as access to "equal" health care, but at "unequal" costs [no thanks to OPM...and the unforgiving beancounters who must more narrow-minded than most Republicans! sorry, strike that last comment. :)]
photo
HUFFPOST BLOGGER
James Peron
02:03 PM on 11/10/2011
It would be very difficult to do that because some "benefits" are also the lack of impediments, that is a benefit of marriage could include the government not doing something to you—for instance the right of spouse to not testify against their partner. Our laws, and how marriage impacts on them, are now so vast with so many laws and regulations that it would probably be difficult to outline all such moves. And often the benefits are not immediately apparent and only discovered as time goes by. This is one reason that private contracts to mimic the marriage contract fail to be the same. In addition, as the states have been finding, attempting to mimic the rights of marriage through civil unions continue to fail because even the "experts" at our overly complext legal system, the people who write the laws, continued to miss things. It might be possible in a legal system that is not so complex that teams of attorneys are needed to wade through it, but that is not the system we live under—unfortunately.
11:04 AM on 11/08/2011
So DOMA not only violates Amendment XIV, but Amendment X as well?

Seriously, how did such a messy piece of legislation ever get passed in the first place? Oh, that's right, religious fear and scapegoating...
12:38 PM on 11/08/2011
bingo! I've seen some (not much because I've had a hard time accessing it) of the Congressional floor testimony about DOMA and it's pretty clear why and how it was passed (aka: animus).
01:24 PM on 11/08/2011
DOMA is clear in defining for federal law what is and is not a marriage.
photo
HUFFPOST SUPER USER
Jason N
Proud Firebagger Lefty
02:38 PM on 11/08/2011
The only thing clear about DOMA is it's blatant violation of the 14th amendment.
photo
StevenWells
Objects in the avatar are larger than they appear
03:12 PM on 11/08/2011
Federal law also once defined who was a person, who was only a fraction thereof, who could vote and who not.

Moving past such distinctions is called "progress."
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
09:35 AM on 11/08/2011
Gay or straight, married people should not have greater rights than the single. Why should those who sign that contract get greater SS benefits, lower tax rates, insurance paid by spouse's employer, special hospital rights? ___ Outlaw discrimination based on marital status, problem solved.
photo
HUFFPOST SUPER USER
Jason N
Proud Firebagger Lefty
10:42 AM on 11/08/2011
Married couples are more stable and make purchases that single people typically don't.
photo
TommyObama
Abuse of power comes as no surprise.
01:26 PM on 11/08/2011
You must be thinking of Kim Kardashian.
photo
FantasticFourFan
No one on the right is a christian.
10:00 PM on 11/08/2011
All the more reason to give it to gays! The more stable relationships there are, the more stable society is!
12:49 PM on 11/08/2011
The reason is that marriage is the legal creation of family. Parents are legally responsible for their children, spouses legally responsible for their spouses. Things like tax breaks recognize that legal dependence.
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
02:49 PM on 11/08/2011
No they don't. You get deductions for dependents, that is for children. The marriage tax break has nothing to do with kids. My ex is 60, got remarried and gets that tax break.

Marriage was meant to subsidize children, but it now has little connection. 40% of US children are now born "out of wedlock", 40% of marriages end in divorce. Very few kids live with their married parents, there are probably more single mothers. DOMA is too late, marriage in the US is already obsolete.
02:55 AM on 11/08/2011
If you want to talk about expensive you should discuss the societal cost of artificially advancing under-qualified people...AKA affirmative action.
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
09:38 AM on 11/08/2011
Which doesn't happen. I worked in high tech since '72. The only affirmative action I saw was that we hired college grads, who were mostly spoiled upper-class whites who didn't know how to work. My father was a milkman, my mother a factory worker. That helped me avoid the same fate.
photo
HUFFPOST SUPER USER
SmileAndActNice
Utilitarianism, the -ism that works.
12:35 AM on 11/09/2011
You mean nepotism?
photo
HUFFPOST SUPER USER
SmileAndActNice
Utilitarianism, the -ism that works.
09:53 PM on 11/07/2011
I'm offering a bounty of badges for anyone who can get a GOP hardliner to argue that these regulations are good on the grounds that jobs are created to meet the regulatory burden.
04:19 AM on 11/29/2011
only jobs created are the ones the regulators get as a reward for looking the other way and otherwise NOT regulating while they held the govt job.
09:35 PM on 11/07/2011
"Complying with regulations is not cheap," noting that regulations aren't paid for by just corporations, but by "the entire economy." It notes that consumers pay higher prices as well, due to these regulations, and that they "act as a drag on economic growth."

Consumers only end up paying for the regulations because the corporations pass compliance costs right onto them. They act like it will cut deeply into their profits.
photo
angelcakesinc
Tolerance of intolerance is intolerable
09:29 AM on 11/08/2011
Oh but it WILL don't you know? If they have to make sure their products or processes or plants don't kill people they'll only be able to afford THREE private jets instead of five! It is truly a travesty of justice! What's the lives of a few thousand peasants compared to THAT?!
04:21 AM on 11/29/2011
but you forget that regulations are there for a reason.. public interest.. public safety and health.. regulations keep our environment from becoming a cesspool .. our air from becoming toxic.. regulations are a counter and defense against the reckless/negligent persuit of profit at the expense of the general good... and as long as there are self serving screw everyone else "republicans" on the planet.. regulations will be a good thing.
09:30 PM on 11/07/2011
You know things are getting bad when Liberals are complaining about burdensome regulations.
photo
HUFFPOST SUPER USER
Ioan Lightoller
Proud Married Gay Pagan Man
12:21 AM on 11/08/2011
These are discriminatory regulations. Do you get insurance coverage for your spouse? Is that insurance taxed as income to your spouse? We have to put up with this. Just ONE of the effects of DOMA. There are 1100-plus rights and protections that are denied to same sex couples who marry where it is legal to do so.
02:56 AM on 11/08/2011
The problem is it shouldn't be legal to do so...
photo
StevenWells
Objects in the avatar are larger than they appear
01:54 PM on 11/08/2011
You puzzle me. I'd think you'd consider that a good sign. Shouldn't you be delighted?
photo
phal4875
The world is run by cats; we just feed them.
08:18 PM on 11/07/2011
My wife and I both admit that DOMA has had no effect on our marriage. We also agree that the gay people in our state, Massachusetts, have not caused us to consider divorcing. When these gay folks get married, it does not steal any "marital happiness" from the total amount that is allocated to gays and straights. Marital happiness is not, in other words, a zero-sum game. The happiness of a gay couple does not reduce - by the exact same amount - the happiness of a straight couple.
photo
HUFFPOST SUPER USER
SmileAndActNice
Utilitarianism, the -ism that works.
11:35 PM on 11/07/2011
I actually had a revelation recently and realized that the "threat" of gay marriage is real from their perspective.

OK, stay with me on this one.

There are two models of marriage in competition right now. Procreative and Romantic. Procreative marriage ... well it's not supposed to be fun. It's not supposed to bring you happiness. It's not supposed to enrich your life.

It is a duty. An obligation. The only way to have sex without sin. And its entire purpose is the manufacture of grandchildren.

Now Procreational Marriage is bleeding to death as we speak. What dealt the deadly blow was the passage of no-fault divorce legislation in the late 70's and early 80's.

http://en.wikipedia.org/wiki/No-fault_divorce#Requirements_for_divorce_prior_to_the_enactment_of_no-fault_divorce

This was a radical change because it formalized the idea that marriage is *supposed to make you happy and that married people should love each other*. This is radically different than marriage as duty/obligation/punishment that "traditionalists" teach their children.

Gay Marriage, meanwhile, is the penultimate expression of Romantic Marriage. Two people getting married NOT because one of them is pregnant, NOT to make grandbabies, but because they Love Each Other. Because they enjoy each other's company. Because they want to spend the rest of their lives together. Because they make each other laugh. Because the house is so empty when the other is gone.
photo
angelcakesinc
Tolerance of intolerance is intolerable
09:46 AM on 11/08/2011
Yup. It's a sad day when 'traditional' marriage is under attack like this! So tragic! Considering the only even relatively stable 'tradition' about western Christian marriage throughout the centuries is that the woman is literally sold as property by her father to her husband and becomes his literal slave, for him to do WHATEVER he wants. Rape, beat, maim, brutalize, kill, all within the husband's rights. Is that really worth defending?
10:31 AM on 11/08/2011
So out law diviorce for people who are medically able to procreate. Otherwise any laws you deem needed to prevent same sex marriage shoudl also be extended to any opposite couple who cannot or will not have any children.
04:27 AM on 11/29/2011
i'm all for gay marriage.. i find it funny that the courts now have to decide divorce resolutions based on things other than the sex of the participants.. ie it's not so simple for them anymore. I find the concept of 2 women divorcing and 2 men divorcing...a fresh look at equality and justice which the courts might learn something that could be applied to different sex divorces. and statistically equal out the resolutions.
photo
HUFFPOST SUPER USER
Contact1972
Honey Badger Don't Care
07:04 PM on 11/07/2011
DOMA prohibits GLBT citizens from over 1000+ Federal rights and protections. How this is still the law in this country in 2011 is baffling to me.

DOMA needs to go-NOW!
03:01 AM on 11/08/2011
Why?
HUFFPOST SUPER USER
Dirk1
Same Sex Married
04:18 AM on 11/08/2011
Because it is un-American to impose religious beliefs on secular laws.
Because science, medicine, and the experience of every country with marriage equality shows that granting us the same rights you have results in a country which is more just, not one which is less just.
09:27 AM on 11/08/2011
Because of what Contact1972 said. Please reread.
04:30 AM on 11/29/2011
marriage needs to go.. replace it with 2 year renewable term contracts taht spell out the dissolution of the union prior to going into effect. a binding contract made by two people who love each other instead two divorcing people. Also if you realize this is a temporary situation people might invest more in something they want to renew and keep going. People would be less likely to take their partners for granted.
07:00 PM on 11/07/2011
In addition to the way that government regulations have a host of unintended consequences, the situation with DOMA shows that peoples' bigotries have a very real financial cost as well as an emotional or social cost. The bigotry of the religious right and the moral majority (so called) lead to the implementation of DOMA, and thus it was their bigotry that is causing this particular damage to our economic fortunes. Bigotry has a hard, bottom line cost that has to be confronted.