The National Gay & Lesbian Chamber of Commerce (NGLCC) has launched a coalition to support federal legislation ensuring tax equity for health coverage of employees in domestic partnerships.

The NGLCC is asking national and affiliate members and affiliate chambers to join its new Small Business Coalition for Domestic Partner Tax Equity , and to contact their elected officials to ask for their support of the Tax Equity for Health Plan Beneficiaries Act of 2009.

"LGBT and allied business owners must ensure their voices are heard on this issue - and by joining this coalition they are doing just that," said Justin Nelson, NGLCC president and co-founder. "It is important during this time of health care reform, that we not forget the crucial point that even before health care reform was a daily topic of discussion, LGBT employees, their families and employers were and still are treated unfairly by the U.S. Tax Code. It is time for this to end."

As current policy stands, employer-provided health insurance offered to an employee's same-sex partners is taxed as income. Because the value of domestic partner benefits is included in an employee's wages when calculating an employer's payroll taxes, the tax obligations for the employee and the employer are increased. This places an additional tax burden on same-sex couples that families headed by heterosexual couples are not required to pay.

"The choices faced by business owners looking to do the right thing by all of their employees is no choice at all," said Kate Karasmeighan, NGLCC chief of staff and director of affiliate relations.  "If they choose to provide benefits to all of their employees, including LGBT staff, they are under an additional tax burden. If they cannot face this tax burden, they must choose to either not provide domestic partner benefits to employee's same-sex partners, or in an effort to be completely equitable, not to offer spouse and dependent benefits to any employees."

Legislation introduced in the U.S. House in May would amend the current policy to end the tax inequities for domestic partners. It would exclude accident and health plan benefits extended to a domestic partner from an employee's gross income, thereby freeing the employee from paying additional income taxes.

The bill was referred to the House Committee on Ways and Means, where it awaits consideration.

To join the coalition, download the form .