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Yes, I know it’s a hit but I just think that the health care exemption from taxes was a ruse and complicated things and tied people to their jobs that they might otherwise not want to be tied to.

I think if we simplify taxes and tax all income that we’d all be better off in end. Lowering taxes wouldn’t hurt either.

Honesly, that insurance was income. Great perk but we were just hoaxing the numbers saying it wasn’t income. Why not just raise the non-taxable limit on income ... same difference.

Its noble of you to talk theory, "would be nice to's", and "shoulds" ...

BUT, I am talking REALITY - what the current situation is !!!

In my scenario, on a $50K salary with $4K given to me for healthcare - I EFFECTIVELY am having my salary REDUCED by 2.4% [$1.2K] in order to pay for something that PREVIOUSLY had been a benefit to me.

Does the company take a hit - NO !!! It gets to write the $4K off on the balance sheet as "salary".

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NOTE:

It would be one thing if the company "grossed up" the $4K to pay for it - but it won't.

"Grossing up" means that the company would give me $5.2K [$4K + $1.2K] so that the tax was paid. BUT, that $1.2K is ALSO taxable, so they "gross up" the $1.2K by 30% [$360]. The $360 is also taxable, so it it gets "grossed up", so an additional $108 is added ... and so on until the "gross up is less than $1 [I'll pay that].

The total "gross up" would result in a total of $5700.40 that would be paid by the company [$4K + $1700.40 for tax] to me.

This is what my comapny did when they paid my re-location fees.

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BUT, IT AIN'T GONNA DO THAT !!!

Does the government give me a tax credit - NO !!!

I GET SCREWED, the company is off the hook, AND the government gets EXTRA taxes [from me] - since the company's previous benefit to me was NOT previously taxable to them.

You say it is "taxable" - tell that to my kids when I tell them they can't go to Hershey Park, or a ball game, or other things BECAUSE I NOW am being "TAXED" for our healthcare !!!