CAMBRIDGE, Mass. (AP) — When the city of Cambridge issues paychecks to its public employees, nearly two dozen workers find a federal tax on their income that their colleagues don't have to pay.
Like many people, these 22 school and city workers chose to put their spouses on their employer-provided health insurance. Because they're in a homosexual relationship, the value of that health coverage is considered taxable income by the federal government.
But starting this month, Cambridge will become what is believed to be the first municipality in the country to pay its public employees a stipend in an attempt to defray the cost of the federal tax on health benefits for their same-sex spouses.
The city employees hit by the extra tax pay an additional $1,500 to $3,000 in taxes a year and officials estimate the stipends would cost the city an additional $33,000.
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