Taxing your employer-provided health care costs…
Ohhhh, this is going to send a lot of folks to the polls next November with blood in their eyes…
This is just a small 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 http://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 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 the 15% that don't have insurance and it's only part of the tax increases.
Not believing this? Research the summaries and here's what you'll be 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 employee's 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.
God Help Us All!!!! The Tax Payers......