In shift, Obama may support taxing health-care benefits
BENEFITS SAVINGS
Under current law, employer contributions to the cost of health insurance are not counted as taxable income for employees. Workers do not pay income or payroll taxes on the benefits. A look at the average savings per tax return, given adjusted gross income (AGI).
AGI AVERAGE
SAVINGS PER
TAX RETURN
$10,000 $625
$10,000-29,999 $2,008
$30,000-49,999 $2,502
$50,000-74,999 $3,106
$75,000-99,999 $3,972
$100,000-199,999 $4,504
$200,000-499,999 $4,634
$500,000+ $4,385
Source: Congressional Joint Committee on Taxation
WASHINGTON — The Obama administration is signaling to Congress that the president could support taxing some employee health benefits, as several influential lawmakers and many economists favor, to help pay for an overhaul of the health care system.
The proposal is politically problematic for President Barack Obama, however, since it is similar to one he denounced in the presidential campaign as “the largest middle-class tax increase in history.” Most Americans with insurance get it from their employers, and taxing workers for the benefit is strongly opposed by union leaders and some businesses.
In millions of dollars worth of television advertisements last fall, Obama criticized his Republican rival for the presidency, Sen. John McCain of Arizona, for proposing to tax all employer-provided health benefits. The benefits have long been tax-free, regardless of how generous they are or how much an employee earns. The ads did not note that McCain, in exchange, wanted to give all families a tax credit to subsidize the purchase of coverage.
Won’t oppose Congress
Now that Obama has begun the health debate, several advisers say that while he will not propose changing the tax-free status of employee health benefits, neither will he oppose it if Congress does so.
When Sen. Max Baucus, D-Mont., advocated taxing benefits at a recent hearing of the Senate Finance Committee, which he heads, Timothy Geithner, Obama’s secretary of the Treasury, assured him that the administration was open to all ideas from Congress.
The administration’s receptivity to the idea is partly due to the advocacy of Baucus, whose committee has jurisdiction over tax policy and health programs, and to support from Republicans. There is less enthusiasm among Democrats in the House.
The Congressional Budget Office says that including health benefits in taxable income could mean $246 billion in additional revenues for a single year.
To read the complete article, go to : http://www.chron.com/disp/story.mpl/politics/6311649.html
Personal Observation: Where does Obama and the "Tax and Spend" Democrats leave the Haynesville Shalers that spoke of, and dreamed, of having a bill passed where Signing Bonuses would be taxed at only a 10% rate? No political party of any persuation, can resist digging into and taking all they can from a new pile of money.
Looks like Obama and his "Hope" and "Change" is heading in a direction most people do not want to go.
Under current law, employer contributions to the cost of health insurance are not counted as taxable income for employees. Workers do not pay income or payroll taxes on the benefits. A look at the average savings per tax return, given adjusted gross income (AGI).
AGI AVERAGE
SAVINGS PER
TAX RETURN
$10,000 $625
$10,000-29,999 $2,008
$30,000-49,999 $2,502
$50,000-74,999 $3,106
$75,000-99,999 $3,972
$100,000-199,999 $4,504
$200,000-499,999 $4,634
$500,000+ $4,385
Source: Congressional Joint Committee on Taxation
WASHINGTON — The Obama administration is signaling to Congress that the president could support taxing some employee health benefits, as several influential lawmakers and many economists favor, to help pay for an overhaul of the health care system.
The proposal is politically problematic for President Barack Obama, however, since it is similar to one he denounced in the presidential campaign as “the largest middle-class tax increase in history.” Most Americans with insurance get it from their employers, and taxing workers for the benefit is strongly opposed by union leaders and some businesses.
In millions of dollars worth of television advertisements last fall, Obama criticized his Republican rival for the presidency, Sen. John McCain of Arizona, for proposing to tax all employer-provided health benefits. The benefits have long been tax-free, regardless of how generous they are or how much an employee earns. The ads did not note that McCain, in exchange, wanted to give all families a tax credit to subsidize the purchase of coverage.
Won’t oppose Congress
Now that Obama has begun the health debate, several advisers say that while he will not propose changing the tax-free status of employee health benefits, neither will he oppose it if Congress does so.
When Sen. Max Baucus, D-Mont., advocated taxing benefits at a recent hearing of the Senate Finance Committee, which he heads, Timothy Geithner, Obama’s secretary of the Treasury, assured him that the administration was open to all ideas from Congress.
The administration’s receptivity to the idea is partly due to the advocacy of Baucus, whose committee has jurisdiction over tax policy and health programs, and to support from Republicans. There is less enthusiasm among Democrats in the House.
The Congressional Budget Office says that including health benefits in taxable income could mean $246 billion in additional revenues for a single year.
To read the complete article, go to : http://www.chron.com/disp/story.mpl/politics/6311649.html
Personal Observation: Where does Obama and the "Tax and Spend" Democrats leave the Haynesville Shalers that spoke of, and dreamed, of having a bill passed where Signing Bonuses would be taxed at only a 10% rate? No political party of any persuation, can resist digging into and taking all they can from a new pile of money.
Looks like Obama and his "Hope" and "Change" is heading in a direction most people do not want to go.
Views: 123
Replies to This Discussion
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Permalink Reply by Two Dogs, Pirate on
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I may be wrong but I feel that these employer paid health care plans and malpractice suits are the cause of the hugh costs of health care today. I grew up in the 50s and 60s and my parents didn't have health insurance. We had a family doctor that made house calls if it was needed, they didn't put you in the hospital when you had a case of the shits. Many that have these employer paid healt care plans go to the emegency room at the first sign of a runny nose.
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Permalink Reply by Mr Hanky on
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If you believe that $694Bn will turn out to be anywhere near the actual costs, well, you've heard the one about the swampland or the bridge, take your pick.
Heck, you may even believe we'll have 4% growth next year, as assumed in the "responsibility" budget.
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Kudos, Mr. Krow! I admire your optimism. I don't share it on this score, so I'll accept the bet.
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Permalink Reply by Two Dogs, Pirate on
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My insurance doesn't pay for anything except getting put in the hospital for something bad and then I have a $3000 deductable. It costs about $400 per month and only covers me. I have never used it, knock on wood.
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Permalink Reply by J. A. on -
Pay your own way. We do not have the same mother and I don't OWE you shit.
This country is way off base. right or wrong-Thank You.
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Permalink Reply by Checkmateking on
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I couldn't agree more JA
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Permalink Reply by Two Dogs, Pirate on
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Something is off base, I am all for putting it back the way it was before going in the hospital cost you an arm and a leg. Maybe that is the next step, if you ain't got insurance we will take a body part for payment.
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Permalink Reply by Two Dogs, Pirate on
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and the cost of health care has gone up a zillion percent.
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Permalink Reply by Grillin' - MmmMmm on
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the family doctor doesn't exist for a bunch of reasons...many of them related to lawsuit abuse. Get rid of half of teh lawyers and healthcare costs would go down. Get rid of half of the illegal immigrants and it goes down again.
Go to a "loser pays" legal system and we get rid of half the lawyers. I like that.
Now, switch to catastrophic medical care policies and make HSA's available to all.
Or maybe we should have a "GM" system of healthcare:
- some will get the Chevy healthcare
- some will get the Buick healthcare
- a few will get the Cadillac
Probably a heartless approach, so maybe Obamma-lamma-ding-dong will give us all the upgrade. As the gov't moves in to medical care, the best and brightest will stop going into the medical field. So, you'll have "average" students being doctors. That's not bad, just not as good as having those top of the class kids. My family doctor told his son not to go into medicine or if he did go in to medicine, plan on moving out of the country to a place where you could have a private practice without gov't help. Not many of those places so the kid is going to be an engineer!
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Permalink Reply by Grillin' - MmmMmm on
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And are you surprised? You get what you ask for and too many folks asked for this! I just hope someone in Congress grows a pair and stops this. If the GOP could get rid of the 3 Senators from Maine and PA, they could stop all of this with a filibuster.
The "change" will stop at nothing until there is only "change" in your pocket. But no one would listen to anyone before November. Now those "95%" who thought they weren't going to get an increase will be happy to see they will be getting a tax hike right up the old ya ya.
"Its not part of his plan but he won't oppose Congress if they pass it"...what a putz.
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Permalink Reply by exbig4acct on
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Looks like he will be sticking it to the other 95% of Americans in addition to those evil "rich folks"! Nice!
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