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IRS Bars Employers from Dumping Workers into Health Exchanges
The New York Times ^ | May 25, 2014 | Robert Pear

Posted on 05/26/2014 1:47:18 PM PDT by rusty schucklefurd

Many employers had thought they could shift health costs to the government by sending their employees to a health insurance exchange with a tax-free contribution of cash to help pay premiums, but the Obama administration has squelched the idea in a new ruling.

(Excerpt) Read more at nytimes.com ...


TOPICS: Constitution/Conservatism; Crime/Corruption; Government; News/Current Events
KEYWORDS: 0carenightmare; exchanges; irs; obamacare; obamacareemployers; shaftingemployers; zerocare
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To: sport

Actually in a “just world” the Progressives would be struck dead by lightning for telling so many whoppers.


41 posted on 05/26/2014 2:36:59 PM PDT by RetiredTexasVet (If you lined up the best and brightest of this administration, you'd just have a string of dim bulbs)
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To: molson209

42 posted on 05/26/2014 2:37:08 PM PDT by FreeAtlanta (Liberty or Big Government - you can't have both.)
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To: RetiredTexasVet

I won’t argue with that!


43 posted on 05/26/2014 2:43:11 PM PDT by sport
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To: randita
Employers can still give the voucher to the employer, but the employer will have to pay the payroll tax portion of it and the employee will have to pay taxes as if this were ordinary income.

Right now, employers can write off the cost of health insurance, but the employee does not count it as income.

As someone who buys their own policy from after-tax income, this is something that always irked me.

A UAW worker, for instance, gets sometimes $10-15,000 worth of benefit, tax free.

I have to make $15K just to pay my $10K worth of premiums

44 posted on 05/26/2014 2:45:15 PM PDT by digger48
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To: rusty schucklefurd
all this is going to do is force employers to lay off more workers or cut hours.

Employees will have to pay a larger % of their premium and a higher deductible. Bad thing for Obamacare is that there will be fewer people on the exchanges.

I'm not convinced that the employer mandate will ever be put in force. Now the big employers will be rushing to change their policies.

45 posted on 05/26/2014 2:46:08 PM PDT by Mike Darancette (Do The Math)
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To: driftdiver
Ok I wont transfer them, but I will drop my companies plan.

The company will pay the $2,000/employee fee and can't give the employees tax free money to pay the exchange. Bad for the employee but employer saves tons of money.

46 posted on 05/26/2014 2:51:32 PM PDT by Mike Darancette (Do The Math)
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To: rusty schucklefurd

More businesses will go below 50 if possible, unless he changes that too.


47 posted on 05/26/2014 2:59:09 PM PDT by grumpygresh (Democrats delenda est. New US economy: Fascism on top, Socialism on the bottom.)
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To: rusty schucklefurd
Consequently, such an arrangement fails to satisfy the market reforms and may be subject to a $100/day excise tax per applicable employee (which is $36,500 per year, per employee) under section 4980D of the Internal Revenue Code.

Sooooo this is a tax that wasn't initiated by the House of Representitives?

48 posted on 05/26/2014 3:05:17 PM PDT by Mike Darancette (Do The Math)
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To: SkyDancer

LOL!! Brilliant....


49 posted on 05/26/2014 3:12:52 PM PDT by sand88
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To: the_Watchman
This move comes from the realization that the employers who do plan to “dump” their employees may choose to announce their intentions early in November.

They can still "dump" an employee into an exchange they just can't reimburse the "dumped" employee. (BTW: check it out, 75% of House and Senate employees' exchange payments are reimbursed tax free).

What will probably happen is that employees will pay the price with higher payroll deductions, higher plan deductions and higher co-payments.

50 posted on 05/26/2014 3:15:22 PM PDT by Mike Darancette (Do The Math)
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To: Amendment10; chris37

Bump


51 posted on 05/26/2014 3:15:27 PM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: sport

In a just World, probably not, but there has not been a just world in the United States of America since April 12th, 1861.

I just fixed it up for you a bit. I saw your point, but the problem goes far far further back than 2008.


52 posted on 05/26/2014 3:27:13 PM PDT by Bulwyf
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To: rusty schucklefurd

What new ruling?

Do we have a new ruling every week? every day? every hour or what?

Is this Venezuela?


53 posted on 05/26/2014 3:35:10 PM PDT by Lorianne (fedgov, taxporkmoney)
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To: Lorianne
Is this Venezuela?

Not quite. Our weather is much nicer in the Carolinas and California.

54 posted on 05/26/2014 3:41:42 PM PDT by Gritty (Climate hysterics shriek on. Loud and apocalyptic is the only setting on the machine.-Mark Steyn)
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To: rusty schucklefurd

Obama administration has squelched the idea in a new ruling.
Guess where you can find the union label.


55 posted on 05/26/2014 3:45:15 PM PDT by Vaduz
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To: digger48
As someone who buys their own policy from after-tax income, this is something that always irked me A UAW worker, for instance, gets sometimes $10-15,000 worth of benefit, tax free. I have to make $15K just to pay my $10K worth of premiums

Digger, all they had to do was change Line 29 of the 1040 Form to allow anyone to purchase their insurance plan to get parody with the 100% small business Adjustment to Gross Income ( thank you GWB ) and large businesses and we would have had via this minor tweak the ability to be proactive and independent of Fedzilla.

Couldn't have that, because between the expansion of HSA's the potentiality of Concierge Service being paid for this via the HSA or even an FSA would have taken all the Insurance Company Paperwork out of the low end stuff and really freed up the system. can't have that either, and IMHO the DNC types were probably getting nervous that the train would leave the station if it did so they had to do a cram down of this beast called Obamacare.

And the Stupid Party was so close to the real solution, the HSA's had mushroomed in Popularity, all they had to do was be bold and go forward. Instead the grew Government @ 7% and got their relatives fat in the late 2000's, and blew all chances to give us a free market solution that might even been applicable to Medicaid and Medicare.

Now we see it was never about Health, or Care, it was about Control, both parties suck on ice and sold their souls to K-Street for Re-election money and sold us down the river.

You can't convince me otherwise than maybe a core of 20% of the House and Senate will really want Obamacare repealed even if we get both house and the POTUS in 16'.

56 posted on 05/26/2014 3:46:01 PM PDT by taildragger (The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks....)
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To: randita
you have to pay a fine-the article says what it is.

The fine for non insurance is $2,000/year if you reimburse (like the Congress does) the Excise tax is $100/day.

57 posted on 05/26/2014 3:53:04 PM PDT by Mike Darancette (Do The Math)
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To: GeronL; All
As mentioned in related threads, there are two major constitutional problems with this “ruling” by the Obama Administration. First, the Founding States had made the first numbered clauses in the Constitution, Sections 1-3 of Article I, evidently a good place to hide them from Obama, to clarify the following. All federal legislative powers are vested in the elected members of Congress; not in the executive and legislative branches.

The next constitutional problem with Obama's healthcare ruling is even more significant. More specifically, regardless what activist justices want everybody to think about the constitutionality of Obamacare Democratcare, the states have never delegated to the feds, via the Constitution, the specific power to regulate, tax and spend for public healthcare purposes. In fact, Justice John Marshall had officially clarified this in general as evidenced by the following excerpts.

So Obama is not only wrongly usurping legislative powers from Congress concerning Democratcare, but he's usurping powers that the states have never delegated to Congress via the Constitution.

58 posted on 05/26/2014 3:54:22 PM PDT by Amendment10
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To: Bulwyf

I agree.


59 posted on 05/26/2014 3:57:17 PM PDT by sport
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To: grumpygresh
Actually, I'm waiting for the executive order prohibiting employers from laying off or firing employees.

That will help with the unemployment rate, too.

60 posted on 05/26/2014 4:01:33 PM PDT by daler
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