Things I Think I Think 1.0: Gay Marriage and Taxes

In a small homage to Peter King's Monday Morning Quarterback, here is an initial list of Things I Think I Think:

1) Gay marriage has less to do with religion and social mores than it does entitlement programs and financial ramifications. Why would the federal government care if two people of the same sex got married?  At best it is a state government issue but the real issue is that same sex marriages impact social security, immigration, taxes, and health insurance.  We don't like to think of marriage as a financial contract with the state but it is effectively a threesome: Him, Her, and the Government.  As such, while we may talk about the ethical aspects of gay marriage, it is really the financial impacts of providing "spousal" benefits through social security, naturalization through same sex marriages, extending spousal coverage for health insurance, and additional deductions for income tax.  Because we have socialized certain aspects of our economy and society, expanding the legal definition of marriage to include same sex marriages will result in financial impacts on all Americans.  Though I am sure there are many honest gay couples that deserve these changes, there will definitely be corruption and abuse that will insist upon even more regulation from a government that cannot afford the regulation it currently does.  With my libertarian views, I would prefer that we remove social security, income tax (see below), and employer sponsored health insurance that way this issue is truly a state level decision whether to support same sex unions or not.  The immigration element could be handled through even more bureaucracy at the federal level but overall it would be a modicum of the issue it is today.

2) The current income tax structure is horribly complicated and inefficient.  I have only donated money to one political cause in my life and that is the FairTax.  To put it simply, it proposes taxation of spending rather than income.  The benefits of this are huge.  I will just talk to a few of the most notable:

A) In 2009, there were 140 million income tax submissions to the IRS.  In contrast, roughly 5000 businesses collect 98% of the tax revenue.  Just think how much easier it is to audit 5000+ businesses than it is to ensure compliance of 140 million tax payers.
B) When tourists come to America and spend money, they are paying our taxes.
C) When any under the table revenue is earned (drug dealers, cash payments, illegal immigrants, etc.), taxes are paid.
D) Investments are no longer taxed.  Thus, when you save money and earn interest, you only pay taxes when you spend the money.  Likewise with investments.  I will no longer need to think about the "tax consequences" of making an investment decision.

These are just a few of the highlights.  Change is hard but the current structure is not supportable as our country continues to grow.