Here’s how your income will “increase” and so will your taxes, under the new Patient Protection and Affordable Care Act, or health care reform/Obamanationcare.
(Also, you should know that the DOJ is defending against the the 20 states’ suit against the above Act, saying it is a TAX, and Congress has the unlimited right to tax you for any reason.)
Should you want to verify this, go to <http://www.thomas.gov/>http://www.thomas.gov/, enter “HR 3590.” Or you can also search the Patient Protection and Affordable Care bill for Title IX Revenue Provisions-Subtitle A: Revenue Offset “(Sec. 9002) that 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 employee’s gross income (excluding the value of contributions to flexible spending arrangements).”
Starting in 2011, next year-the W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are provided. It doesn’t matter if you’re retired. Your gross income WILL go up by the amount of insurance your employer paid for. So you’ll be required to pay taxes on a larger sum of money that you actually received. Take the tax form you just finished for 2009 and see what $15,000.00 or $20,000.00 additional gross income does to your tax debt. That’s what you’ll pay next year. For many it puts you into a much higher bracket. This is how the government is going to buy insurance for 30,000,000 (including illegal aliens) who don’t have insurance and it’s only part of the tax increases. Also, you can go to Kiplinger’s and read about the thirteen (13) tax changes for 2010 that could affect you.
This change is a redefinition of your taxable income.
Maybe you remember that Mr. Obama as a candidate swore not to raise taxes on anyone making less than $250,000 a year, and iironically, one of the main reasons Obama was elected over McCain was that Democrats pointed out that McCain would tax medical insurance if elected.
Remember the words of Nancy Pelosi: ”We have to hurry and pass this HealthCare Bill ‘so we will know what is in it.” NOW YOU KNOW.
Moe Lane
Steve Maley
KnightsofMalta
Dan Spencer
Dan McLaughlin
That's not what Kiplinger's says
Menlo (Diary) Monday, July 19th at 12:44PM EST (link)I went to the page on the 13 changes, and it says:
Is doesn’t appear to be considered taxable income, at least not yet. Maybe I’m missing something though.
“The ultimate touchstone of constitutionality is the Constitution itself and not what we have said about it.” -Felix Frankfurter
Not all taxes are income tax, Menlo.
acat (Diary) Monday, July 19th at 1:04PM EST (link)So, while it may not count for taxable income for the Federal return, it might get counted elsewhere….
This is from memory, I don’t have a 1040 booklet in front of me, but as I recall, whether or not a person has to look at Alternative Minimum Tax is based on a “threshold” gross income. Earn too much and you have to at least show the work.
I also seem to remember that social security withholding is based on gross income, not net. Some of the employer-side taxes are, likewise, based on “gross” income, not “taxable” income so, while it’s true in the narrowest sense that my income tax won’t go up, what this means is that if I had a regular W2 job, the company I work for has to pay more to keep paying me the same salary. Guess where my raise just went….
Also, gross income is one factor that gets looked at to see what federal aid programs a person qualifies for, so this has the potential to hit the working poor too.
Mew
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“All that is gold does not glitter, not all those who wander are lost”. –Tolkein
That's not what I read.
Menlo (Diary) Monday, July 19th at 4:33PM EST (link)I read “taxable income” to mean “taxable” for any kind of tax, but who knows? I could read the actual text of the bill, but I see little point. Either way, I’m sure a lot has yet to be decided on how individuals’ paychecks will look.
I can’t argue with you that businesses undoubtedly will have to deal with all sorts of new costs and taxes under this vile program, some of which could well impact employee pay (for those who can still afford to keep the employee or stay in business at all).
“The ultimate touchstone of constitutionality is the Constitution itself and not what we have said about it.” -Felix Frankfurter
I'm not convinced
callawyn (Diary) Monday, July 19th at 4:31PM EST (link)This got emailed around my office too, but I’m not sure its as bad as it looks.
This could be just for reporting purposes, since Obamacare has provisions based on the value of the health insurance provided by your employer.
Specifically, I question whether:
1) We will actually be paying any income tax on the value of our employer provided insurance plans.
2) Will the value of our plan be added to our gross income to determine our tax bracket? Again, I doubt it.
I’m no expert on this, and I wouldn’t be shocked to find out that they’re really going to screw us on this, but from what I’ve seen so far it seems the scary emails going around on this issue are likely not accurate.
Exactly what I am thinking. nt
Menlo (Diary) Monday, July 19th at 4:35PM EST (link)“The ultimate touchstone of constitutionality is the Constitution itself and not what we have said about it.” -Felix Frankfurter