Health Care Reform?

Posted by Bruce Mc on Jun 9, 2010 in Information, Opinions, Taxes | 4 comments

Tax Hikes are on the Way. . .

Unfortunately HR3590 is a centipede with lots of feet!!!

My Favorite movie line ever. . .

“And here we go…”

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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 that recently 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 {you’ll need to select ‘Bill Number’ before ‘enter’}.   

Starting in 2011 your W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are given by the company. It does not matter that it is 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.  (for *working* military retirees, that’s company benni’s PLUS Tricare)

You will be required to pay taxes on a larger sum of money that you have never seen. You benefited from it but never saw it.

Take your tax form you just finished and see what $15,000 to $20,000 additional gross does to your tax debt. That will give you a good “guess” what you’ll pay next year.  For many it also puts you into a new higher bracket so it will be worse for those folks.

This is how the government is going to buy insurance for those 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 <link, read it here> -(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.”  (taxed at up to 40% by the way) 

Joan Pryde is the senior tax editor for the Kiplinger letter. Go to Kiplinger and read the 13 tax changes that could affect you.

 Number 3 is what I just told you about.

Why am I telling you this? 

“This is going to leave a mark!!”