No tax increases huh? Welcome to the New Socialist America...
Starting in 2011 (next year folks) your W 2 tax form sent by your employer will be increased to show the value of what ever health insurance you are given by the company. It does not matter if that's a private
concern or governmental body of some sort. If you're retired ? So what; your gross will go up by the amount of insurance you get.
The dollar value (cost of what the company pays for your insurance) will be considered income and added to your gross pay. You will be taxed on the total You will be required to pay taxes on a large sum of money that you have never seen. Take your tax form you just finished and see what $15,000 or $20,000 additional gross does to your tax debt. That's what you'll pay next year.
For many it also puts you into a new higher bracket so it's even worse. This is how the government is going to buy insurance for 15 % that don't have insurance and it's only part of the tax increases.
Not believing this I researched the summaries and here's what I'm reading:
On page 25 of 29 : TITLE IX REVENUE PROVISIONS- SUBTITLE A: REVENUE OFFSET
PROVISIONS-(sec 9001 , as modified by sec. 10901)
Sec.9002. "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 employees gross income."
Joan Pryde is the senior tax editor for the Kiplinger New Letters. Go to Kiplingers and read about 13 tax changes that could affect you. Number 3 is What I just told you about.
Why am I arming you with tis information in hopes that you will spread the word to the idealistic people who don't realize what this program is going to cause on our economy. People have the right to know the truth because an election is coming in November
On average the company portion of your health benefits are $400-$600 a month, so going with a median of $500 per month that is $6000 a year the average to income ranges especially in two income homes is going to fall in the $34,000-%82,400, and 82,400-$171,850 those tax brackets are respectively 25% and 28%. What that means to you is, your taxes have been increased by $1500, and $1648 a year without a "tax increase" talk about creative. You live paycheck to paycheck, and now over $100 a month is missing? There went your budget. There goes the economy again too. Consumer spending will go down, creditors of non essential bills will not be paid, starting the exact same loop of credit based economical failure that we are supposedly coming out of now.
Imagine being the single mom with a few kids, making 34,500 a year and barely making it, all the suddenly the government comes in grabs your purse and steals $125.00 a month from you to pay for people who didn't do what it takes to get a job and take care of there own self. Yet now you can't pay your bills and you don't qualify for any government aid. Fan-fricken-tastic!