Gay marriage rulings: California businesses await economic boom

On the day the Supreme Court handed two major victories to the gay rights movement, Rossmoor Pastries in Signal Hill put the finishing touches on a wedding cake celebrating gay marriage.

The cake — creamy white topped with two same-sex couples kissing — is the first of many that owner Charles Feder anticipates baking as gay weddings resume in the Golden State. He expects gay wedding celebrations, along with future anniversary fetes and baby showers, to be a boon to his business.
“When gay marriage was allowed previously in California, we did three or four [cakes] a week, about 20 a month,” Feder said. “I am expecting that to come back with a fury.”

On Wednesday, the U.S. Supreme Court struck down the federal Defense of Marriage Act and denied an appeal to a ruling that struck down Proposition 8, which in 2008 banned gay marriages in California. Economists say those twin decisions could be a boon to both state and federal coffers, and grant new financial benefits to married gay couples.

In California alone, the state’s budget could see a gain of $40 million in wedding-related tax revenue over the next three years, according to the Williams Institute, a think tank at UCLA Law. The federal government could gain $500 million to $700 million annually in taxes with the influx of newly recognized marriages, the Congressional Budget Office said.

Written by Shan Li, Adolfo Flores and Ricardo Lopez. To read the full article, click here.

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