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 Hoosier Daddy on
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And on this front, he's got to destroy the private health care system to create a clear path for government-run health care.
The moment zero-bama was elected, I said to myself and my family -- we have to start living healthier, because our health care system is going to be sh*t once zero is done with it.
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Permalink Reply by Mr Hanky on
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You're absolutely right Hoosier. The sh*tfest is just getting started.
Everyone needs to prepare themselves for a health care system with rationing and where the brightest young people do not choose medicine as a profession.
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Permalink Reply by R B on -
"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" Is that like voting present?
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Permalink Reply by El Theo on
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What's to keep companies and employees from ditching their employer provided care and just letting the government supply thier insurance? This government is getting too big for its' britches....and FAST!!!
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Permalink Reply by Checkmateking on
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Anyone who voted for this idiot is a dithering fool, I will stand by that comment. The sad fact is that McCain was a joke as well, our republic is basically finished.
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I notice that none of the usual suspect Obama apologists have jumped on this thread. I guess even they know that this is an area where you can't defend the indefensible.
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Permalink Reply by J. A. on
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Get ready that should ramp them up. Rush is right the liberals are cruel beacuse they lie to poor oppressed people, tell them they will help them and actually keep them down by playing on there character defaults.
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You're right. I am a productive person, so when our health care system turns to sh*t, I'll be able to afford medical tourism, etc. The poor oppressed people will be stuck with poor care, rationing, and interminable waiting lists.
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Permalink Reply by Checkmateking on
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Mr. Krow,
If we have the worst healthcare system of any industrialized nation why do all the people who have money from overseas and Canada come to the US for treatments? I recently read about a government offical from Canada, who helped author their socialized medicince laws. He travels to New York so he doesn't have to wait in line six months, he is also a close friend of the Clintons.
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And we'll get what we pay for.
I see you're a Kool-aid drinker all the way, Mr. Krow.
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Permalink Reply by P.G. on
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Anyone remember how much auto insurance rates would be cut if only seat belt laws were passed?
Working folks and their employers will still pay for those who have no health insurance no matter what. Being led to believe anyone will get some kind of break if the government starts taxing benefits is a laugh!
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