Your Taxes Next Year

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This is part of the new Health Care Bill.

I contacted my Congressman about House bill HR3590 the health care bill just passed. I asked for a summary of changes.
The aid directed me to go to www: thomas.gov ; enter HR3590 in the search box and look for summaries.

Starting in 2011 (next year folks) your W 2 tax form sent by your employer will be increased to show the value of what ever health insurance you are given by the company. It does not matter if that's a private concern or governmental body of some sort. If you're retired ? So what; your gross will go up by the amount of insurance you get.

You will be required to pay taxes on a large sum of money that you have never seen.

Take your tax form you just finished and see what $15,000 or $20,000 additional gross does to your tax debt. That's what you'll pay next year. For many it also puts you into a new higher bracket so it's even worse.

This is how the government is going to buy insurance for 15 % that don't have insurance and it's only part of the tax increases.

Not believing this I researched the summaries and here's what I'm reading:

On page 25 of 29 :

TITLE IX REVENUE PROVISIONS- SUBTITLE A: REVENUE OFFSET PROVISIONS-(sec ..
9001, as modified by sec. 10901)
Sec.9002. "requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer sponsored group health coverage that is excludable from the employees gross income."

Joan Pryde is the senior tax editor for the Kiplinger letters. Go to
Kiplingers and read about 13 tax changes that could affect you. Number 3 is what I just told you about.

Why am I sending you this ?. The same reason I hope you forward this to every single person in your address book. People have the right to know the truth because an election is coming in November.

" When injustice becomes law, then

Rebellion becomes duty!"

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The bill requires the employer to LIST the cost of health insurance, and it clearly notes that this cost is excludable from the gross income. There are already quite a few line items on the W-2 form that are not taxable, like 401-K and 403-B contributions. While I was not a fan of the Leviathan that was the health care bill, the cost of your health insurance will not be included as taxable income.

However, employers who provide the so-called Cadillac plans for health coverage may have to start paying taxes on the "excessive" amount of coverage in 2012 and beyond. This is not going to be paid by the employees, but it could be passed on in indirect costs (like lower raises) or passed on to consumers in the form of higher prices.

... that it was the insurance companies that were offering the cadillac plans that were going to have to pay the tax. Which just seemed totally stupid to me, because if the cadillac plans were very profitable, then the tax would just be spread out against all of the policies so that the cost of the Cadillac plan stayed as low as possible (given that it is an expensive plan) and the related tax would be spread out against all of the insured people thus making the increase from the tax very minimal.

Yes, you are correct: the tax would first be paid by the insurers, then (indirectly) the employers via premiums with the taxes added in.

As far as the profitability of the so-called Cadillac plans: my own experience in providing health insurance to my workers is that the insurance brokers tend to steer clients toward the insurace carriers with which they do business, and the relative profitability among the offered options does not vary a great deal. I should add that the group size of the company I owned was fairly small (20 or so full-time people with benefits), so if there were significant profit margins between the various plans it might not have added up to a significant difference in commissions to the broker.

The expensive plans, though, are more of a recuiting/retention tool for employers than a center of high profits to insurers, and in some ways the "Cadillac" plans mean higher costs to the insurers because of the low or non-existent deductibles. The Baucus plan was supposed to make these plans more expensive and cause employers to be disinclined to purchase them, as the belief was that people with zero or very low deductibles tend to be less cost-conscious than people with higher deductibles (i.e., driving up costs through wasteful spending).

Anyone in the health care insurance industry who wants to weigh in can do so if my experience is different from the present reality. To put this in the car metaphor: a salesperson would probably be happier selling 400 Chevys a year than to sell 50 decked-out Cadillacs, even if the profit margin is somewhat higher on the Caddy than the Chevy.

Joan Pryde is the senior tax editor for the Kiplinger letters. Go to
Kiplingers and read about 13 tax changes that could affect you. Number 3 is what I just told you about.

This is what Joan Pryde’s #3 says…
A requirement that businesses include the value of the health care benefits they provide to employees on W-2s, beginning with W-2s for 2011. The amount reported is not considered taxable income.

I shouldn’t be surprised anymore by the right wing ditto machine that has fewer and fewer people doing the thinking and more and more intellectual light weights nodding in unison, but I am. I know Billy’s above copy and paste job is going round the tubes of the internets, but I guess I give much credit that someone actually read what author is referring to and stop passing it along. It took maybe 10 seconds to debunk. The wing nuts are getting sadder and sadder.

I was busy and frankly didnt feel like looking stuff up. I figured if dogboy can constantly copy'paste stuff up here without vetting it himself I could too, and then let the libs do my work for me. I really didnt know whether it was true or not.

Thanks for the heads up. After all - a sensor's just a tool, and I used him as one!

I’m glad you’ve accepted to the fact that you and Wolfie are equals.
As for using me a tool, I think there is a wife joke somewhere in there.

It makes an annoying squeal when it's properly working too. still just a tool.

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