Under 'Option 5' We all earn more money!!

[michaeledward]

One of the priorities during the second term of the Bush Administration is to overhaul the current US tax system. At this point, it may be pushed back in deference to Social Security changes, but, as I read this report, we are all going to earn more money.

http://www.msnbc.msn.com/id/6760039/

the plan would tax the value of an employee's health insurance benefit as if it were income.

.

My employer, a Fortune 500 company, has committed to contributing 75% of each associates health care costs. Under the proposed plan, I immediately have $7,755.00 added to my taxable income. That's Awesome. . . .

except. . . . I won't see a penny of that money (I don't see it now). Because my employer contributes that to my health care coverage, it will be treated like income. Hell, it will probably be enough to push me into a higher tax bracket.

And ... what happens to my employer under 'Option 5'. ...

And corporations would be allowed to immediately deduct -- or "expense" -- from their taxes a portion of the cost of business investments, instead of having to slowly write off those costs based on complex depreciation allowances.

. . . an immediate write-off for business plant and equipment purchases could reduce the tax burden on profitable companies so much that they would end up receiving tax refunds

I'm glad the company gets to share the additional tax burden placed upon citizens. Oh, wait .... that's not what this plan proposes at all. In fact, if I read it correctly, the company can earn 'Tax Refunds', while I have more tax burden, without earning any more money.

God, I am so glad I live in a 'Red Country', where everyone gets the government they voted for.

Mike

 

[PeachMonkey]

Well, Mike, if it makes you feel any better, your Social Security program will likely be torn apart and replaced with a chancy stock-based program. And the two trillion dollar costs of the transition will further erode the value of US' already massive debt, further weakening the dollar worldwide and helping further the slide of our economic power.

Oh, wait, that doesn't help either, sorry.

This really is what happens when people think that class warfare by the wealthy will actually help anyone other than the wealthy. Guess they shoulda paid attention in history class.

 

[rmcrobertson]

While it seems unlikely that these clowns will actually get this one through the AARP and others (Teddy Kennedy kicks ***!!), they have pulled something similar previously--back in the 80s, under Reagan, they started taxing graduate student stipends and tuition waivers as income...I barely got out ahead of a demand for taxes on 35K/year, at a time when I got $667/month to live on.

Just another way to make it hard for working class people to get their education.

And agreement; one can see why people vote selfishly and paranoically, but it's always difficult to see why folks vote against their own selfish interests, and for the people who are busily sticking it to them.

 

[PeachMonkey]

And agreement; one can see why people vote selfishly and paranoically, but it's always difficult to see why folks vote against their own selfish interests, and for the people who are busily sticking it to them.

Yep. But I remember alot of these same people sitting in class not so long ago complaining about how every subject had no relevance "in the real world", so I can't express too much surprise that they're not willing, or able, to see how well they're giving themselves the ol' screw.

 

[Phoenix44]

Wow, I can't wait until Social Security is corporatized! I was planning on dropping dead on the job anyway.

 

[michaeledward]

The Kaiser Family Foundation announced today that the average family's health care premium is $10,880.00 per year. Approximately 74% of that annual fee is picked up by the employer. Workers pay an average of $2,713.00 per year. (that's more than $1,000.00 higher than 5 years ago).

Are you being priced out of Health Insurance?



http://www.usatoday.com/money/industries/health/2005-09-14-family-health-policy_x.htm

 

[Bob Hubbard]

What's Health Insurance?

 

[Makalakumu]

Notice how the conservative members of this forum tend to avoid these threads...

Does anyone have a rebuttle for this?

 

[ginshun]

What exactly is supposed to be rebut? You libs should be happy, you guys love high taxes.

Lets raise all the taxes up to 60% of our incomes and socialize healthcare right?

Well 60% for the average person. 20% for the poor and 90% for the rich right?

 

[michaeledward]

What exactly is supposed to be rebut? You libs should be happy, you guys love high taxes.

Idiotic comment.

Lets raise all the taxes up to 60% of our incomes and socialize healthcare right?

OK ... Bob admit's he does not have health insurance ... what do you suppose happens if he has to go to the doctors? Who do you think pays for that? ... waiting .... waiting ... Oh, yeah, the hospitals will adjust their billing for paid services to cover those unpaid services ... which means my insurance premium goes up to cover Bob's ill health.

Please explain to me how that is not "socialed healthcare".

(Bob - I need an example here - please don't take offense at being singled out).

Well 60% for the average person. 20% for the poor and 90% for the rich right?

Actually, you see, any familiy with healthcare coverage pays close to $11,000.00 per year. Poor, Rich, or otherwise.

 

[Bob Hubbard]

No offense.

I just self-medicate to avoid the insane rates charged at the docs since the companies rely on insurance $$ for profits. I got a quote for insurance, it was $300/mo, with $20 copays and $15 drugs. Out of my spare cash reach.

 

[michaeledward]

No offense.

I just self-medicate to avoid the insane rates charged at the docs since the companies rely on insurance $$ for profits. I got a quote for insurance, it was $300/mo, with $20 copays and $15 drugs. Out of my spare cash reach.

I understand. Although, that is not an unreasonable fee for service.

I am assuming that the coverage is for a 'single' person. There is also probably a deductible of, perhaps, 750.00 per year, before coverage kicks in.

I take the same tact when deciding whether I carry 'collision' insurance on my 1994 Jeep Wrangler. The Collision coverage has a limit of liability up to the 'Actual Cash Value' of the vehicle ... which is about 1200.00. My deductible of 1000.00 means at best, I would have a 200.00 settlement, before the Insurer considered my vehilce a total loss. Therefore, it makes no sense to carry 'Collision' coverage (I obviously carry substantial liability - in case I hit someone else).

The question becomes ... what is the 'Actual Cash Value' of a human life ... If my car gets sick ... at most it will cost 200 bucks. If a person gets sick, it can cost thousands, or hundreds of thousands of dollars.

 

[Flatlander]

I don't see a problem with being taxed for the employer contribution on your health insurance - its a taxable benefit. The employer is essentially providing funds for you to cover the premium, how can anyone consider this item as being different from any other type of taxable income?

Also, the employer should be able to write it off - its a cost, just like wages. I understand that it can be difficult to accept a new way of doing things, but in my opinion, these taxation measures are appropriate.

Having said that, I am used to being taxed too much for everything. For me, this is standard stuff....

 

[ginshun]

OK ... Bob admit's he does not have health insurance ... what do you suppose happens if he has to go to the doctors? Who do you think pays for that? ... waiting .... waiting ... Oh, yeah, the hospitals will adjust their billing for paid services to cover those unpaid services ... which means my insurance premium goes up to cover Bob's ill health.

Please explain to me how that is not "socialed healthcare".

I guess I didn't realize that if you don't have health insurance, that means you don't have to pay for medical care. That sounds like a pretty good deal.

*cancels health insurance*

 

[michaeledward]

I guess I didn't realize that if you don't have health insurance, that means you don't have to pay for medical care. That sounds like a pretty good deal.

Those without insurance tend to put off medical visits, which leads to higher expenses when treatment is actually required. Medical treatment, when required by the uninsured, tends to be sought for at emergency rooms, rather than less expensive clinics. And while the providers may send out bills to those who receive care, those bills often go uncollected as the people who can't afford insurance probably don't have the money sitting around for a bill that rolls in.

So, it's kinda like, oh, not spending 200 Million dollars to repair some levee's compared to spending 200 Billion dollars to repair some cities.