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Very disappointed IF this passes Congress.... " Have's" pay for "Have not's " - Thoughts?

http://www.msnbc.msn.com/id/31106408/

As part of a health insurance reform package now before Congress, some of the 164 million Americans who are covered by employer-provided health plans could be asked to give up at least part of the longstanding tax exemption granted to such compensation.

The idea of limiting the tax break for employer-provided insurance gained momentum last week, when Obama told senators that he’d consider it as one ingredient of the health insurance reform bill he wants Congress to pass by early August, when the Senate starts a one-month recess.

While details of such an approach are still sketchy, it would likely involve employees paying tax on a percentage of their employer-provided health benefits. So if Congress decided that all such premiums in excess of $11,000 for family plans would be taxable income, and your company paid premiums worth $16,000 for your coverage, you’d have to pay taxes.

 
parrishsky

Asked by parrishsky at 3:14 PM on Aug. 18, 2010 in Politics & Current Events

Level 23 (17,547 Credits)
This question is closed.
Answers (20)
  • Gertie, I'm already taxed up the wazoo. I honestly don't feel I should pay taxes on my health care. I personally fork out over $8000 a year out of pocket for a family of 5. Taxing a % of that $8000 will make a significant difference in my take home pay.

    That $8000 wouldn't be taxable since you are paying it, not your employer.

    Only what your employer, not you, pays for your insurance over and above $11,000 would be taxed. So say someone has a policy that costs $16,000 annually and their employer pays half and they pay half, no new taxes. If however the employer payed the whole thing $5000 of what their employer pays would be taxable income so they would pay their tax rate on only the $5,000. Which at most would be around $1800 since the highest tax bracket is 35% so a little more than 1/10 the value of the entire policy.
    annabellelee

    Answer by annabellelee at 5:03 PM on Aug. 18, 2010

  • Actually, I believe with McCain's plan, the tax you would pay on your insurance would come back to you when you filed your taxes every year. I understood it to be like an interest free loan to the govt.


    Obama ridiculed McCain for suggesting such a thing and never spoke about the money that would be coming back to you when you filed your taxes.  Low and behold, here they are suggesting doing something they raked McCain over the coals about.  Disappointing indeed.

    QuinnMae

    Answer by QuinnMae at 3:22 PM on Aug. 18, 2010

  • This makes me mad,because the government is always trying to get more money.
    mamaofficer

    Answer by mamaofficer at 3:19 PM on Aug. 18, 2010

  • It doesn't count as income, Gertie, because it's not income. It doesn't come to you, and you don't have a decision on how it's spent.

    What will happen, because of this, is rather than people paying those taxes, they will choose to enroll in the government option. It's the first step to universal health care.
    lovinangels

    Answer by lovinangels at 3:35 PM on Aug. 18, 2010

  • This is by design.
    Obama wants everyone covered by Obamacare.

    Small businesses that offer health insurance will drop it and employees will be covered by Obamacare.

    Where are the jobs?

    And this will cause small businesses to feel like hiring?

    Small businesses in this country, as a group, account for the lion's share of employment.
    mustbeGRACE

    Answer by mustbeGRACE at 4:00 PM on Aug. 18, 2010

  • Actually the fine for not covering employees will likely be less than the cost of covering them which will cost employers who currently cover employees to stop doing so. Since we all MUST have insurance that puts a lot of us in the insurance exchanges. There are no caps on what insurance companies can charge. They must cover everyone but they can charge whatever they want. This is why it's so important for the mandate to be declared unconstitutional, which it is.
    sopranomommy

    Answer by sopranomommy at 4:33 PM on Aug. 18, 2010

  •  So if Congress decided that all such premiums in excess of $11,000 for family plans would be taxable income, and your company paid premiums worth $16,000 for your coverage, you’d have to pay taxes.


    I thought this was already included in some form..the so called "Cadillac" tax??..have to read about it later

    sweet-a-kins

    Answer by sweet-a-kins at 3:17 PM on Aug. 18, 2010

  • If your employer or health care plan pays for thousands of dollars for your care, why wouldn't it be income to you? And why wouldn't you pay taxes on any income?
    gertie41

    Answer by gertie41 at 3:28 PM on Aug. 18, 2010

  • Go to this site for a short concise timeline of Obamacare.  Click on the blue "here" for the pdf which will lay it all out for you, year by year.

    29again

    Answer by 29again at 4:07 PM on Aug. 18, 2010

  • And seriously, when in the last 70 - 80 years have the "have-nots" been encouraged to pull themselves up, and do what they need to do? When haven't the "have's" been taking care of the "have-nots" in all this time? When have the "have-nots" been encouraged to take responsibility for the fact that they are "have-nots" and encouraged to change that through their own efforts?
    29again

    Answer by 29again at 4:14 PM on Aug. 18, 2010

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