Skip to comments.Health Care Tax Hikes for 2013 May Be Just the Beginning
Posted on 01/30/2013 6:12:09 PM PST by Lorianne
The tax hikes already on the books, taking effect in 2013, fall mainly on people who make lots of money and on the health care industry. But about half of Americans benefit from the tax-free status of employer health insurance. Workers pay no income or payroll taxes on what their employer contributes for health insurance, and in most cases on their own share of premiums as well.
It's the single biggest tax break the government allows, outstripping the mortgage interest deduction, the deduction for charitable giving and other better-known benefits. If the value of job-based health insurance were taxed like regular income, it would raise nearly $150 billion in 2013, according to congressional estimates. By comparison, wiping away the mortgage interest deduction would bring in only about $90 billion.
"If you are looking to raise revenue to pay for tax reform, that is the biggest pot of money of all," said Martin Sullivan, chief economist with Tax Analysts, a nonpartisan publisher of tax information.
It's hard to see how lawmakers can avoid touching health insurance if they want to eliminate loopholes and curtail deductions so as to raise revenue and lower tax rates. Congress probably wouldn't do away with the health care tax break, but limit it in some form. Such limits could be keyed to the cost of a particular health insurance plan, the income level of taxpayers or a combination.
(Excerpt) Read more at dailyfinance.com ...
The rest of us: Yes dear, the government does that a lot. How is it that you haven't been noticing that?
Kinda like the "Patriot Act".
They are going to have to raise money for the 11 million Amnestistas Barry is about to create. Anyone who thinks the federal courts will allow the government to refuse to give them ObamaCare is doing way too many recreational drugs. It would be “unconstitutional” to deny them ObamaCare don’t ya know.
Aaaaaaaah, but a LOT of health care businesses are on the looooooong list of those exempt from Obamacare. The list is comprised primarily, if not completely, of health care businesses and unions.