Obama to announce tax on health benefits

Fox News Channel | 6/3/09

[hoe_cake]

“...however long this ass-hat is in office.”

Hmmmmmm.

[razorback-bert]

Will this hit union retirees too?

[Myrddin]

My company puts out a "compensation" report for each employee. It details your gross pay, the employer's contribution to social security and the employer's contribution to the medical/dental/vision benefits. In my case, that amounts to about $8,000. I pay an additional $10,000 from my gross pay toward the medical benefits.

Taxing my employer's contribution at 25% takes another $2,000 out of my pocket annually. That's less than if my employer adds the contribution directly to my gross. That taxes it at 28%+. If my own contribution of 25% is going to get taxed as well (it is currently deducted from my gross and not taxed), that steals another $2500 from my net annual pay. Divided over 26 pay periods, that removes another $173 per paycheck for the tax to pay for other people's medical care...on top of the high rates I already pay to subsidize people who don't pay.

[DonaldC]

“More heads will explode when the Bush tax cuts expire next year too. They’ve been told for years now that his tax cuts were only for the “rich”. Won’t they be in for a surprise to learn who the “rich” really are.”

I tried to explain that to my dad and he turns and asks me if I am rich enough to benefit from the Bush cuts. I said I’m not rich but looking at my tax returns, I benefited, and if he did his own taxes he would have seen it also.

[Red Badger]

I think a 25% tax on employer provided health care would be the thing that would make my liberal friends angry, finally.

Don't bet on it...................

[ExSES]

So, does this encourage employers to drop their employee health insurance?

All depends........

If the IRS won't allow employers to deduct their share of health insurance costs..., yes!

If EMPLOYEES are taxed for their "Free" employer paid health costs..., no!

There are thousands of individuals who enjoy VERY lucrative health care insurance programs at little or no cost..., many with no co-payments required... (Hey, explore many union negotiated plans..., not to mention sweetheart "Key Executive" plans which have come into existence over the past few decades!)

McCain was widely attacked for recognizing the inequities in health care insurance programs! Now, the "O" endorses what he loudly attacked just a few months ago!

[mc6809e]

The deductability of health care benefits in the absence of the deductability of income spent on health care never made sense.

Either everyone pays tax on the money spent for health care or no one should.

[Drill Thrawl]

“Will this hit union retirees too?”

I think you answered your own question by adding the union qualifier.

[I_Like_Spam]

This was one of Obama’s big talking points last year, that McCain was proposing to tax health benefits. I’m still holding the piece of paper the campaign sent me, and it was the huge point that a friend pointed as to why they were voting for Obama.

I wonder what the explanation will be for this flipflop.

[Rashputin]

I'm afraid that people won't do any more than piss and moan rather than revolt. Until the O man taxes sex with coworkers as a fringe benefit or something equally convoluted, people will just get busy figuring out how to hide their income or how to find offsetting deductions. They're so accustomed to having to hide from and avoid their own government that it may well be too late.

have a nice day

[DainBramage]

I work for a large city. They are self insured and at the end of the year issue me a statement of the value of my beneifits , which are inflated to make them look big.

Im going to to get taxed over something whose value I cant dispute, and all that with me paying a large payment and deductable.

[Red Badger]

My new tagline..............

[massgopguy]

I did the math. This will cost me $800. By the way, in MA IO am required by law to purchase health insurance.

[Kozak]

So, does this encourage employers to drop their employee health insurance?

Yes, and it will also encourage employees to drop their coverage, increasing the number of uninsured, the "problem" Zero is supposedly trying to fix.

[brytlea]

Yeah, I wish it would feel better to say I told you so...

[tnlibertarian]

Just a night out with the wife money, that.

Hey, that's an interesting coinky-dink.
"I will not raise taxes on anyone making less in a year than the cost of one of my nights on the town."

[GeorgiaDawg32]

yes..

223% hike in taxes on beer and wine..

[CdMGuy]

Right you are. I have not spoken to a friend of mine in over two months. He voted for Obama. When I expressed my concerns in a phone call about Obama’s handling of the economic situation in late March, along with his other socialist ideas, the guy went high order. I told him that I would gladly admit in 12 months that I was wrong about Obama if things changed for the good as a result of Obama’s actions. At that point, he said that I would NEVER admit that I was wrong, at which point I realized he was being totally irrational. Amazing.

[Reagan69]

Now come on, BO has to pay for those date-nights in NYC, dontcha know...

[Cyclone59]

If i’m making $30k with health benefits, which will now be taxed at 25%, I would probably benefit if my employer dropped my health insurance, even increasing my pay, and I go on the government dole for health “care”.

This ignores the fact that gov health “care” will suck, but when sometime is seen as “free” or “cheaper”, people will probably be drawn to it.

I totally agree, but my delima is that my employer pays 100% of my health care benefits and I am NEVER sick, I haven’t even called in sick for the last 4 years. I used have used the health insurance once for getting some stitches in my thumb.