Your Taxes Next Year

To be honest, I have not had a chance to validate this as I just recieved the notice below:

This is supposed to be part of the new Health Care Bill. I contacted my Congressman about House bill HR3590 the health care bill just passed. I asked for a summary of changes. The aid directed me to go to www: thomas.gov ; enter HR3590 in the search box and look for summaries.

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.

You will be required to pay taxes on a 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 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 sending you this ?. The same reason I hope you forward this to every single person in your address book. People have the right to know the truth because an election is coming in November.

This is the exact code wording:

Title IX: Revenue Provisions – Subtitle A: Revenue Offset Provisions – (Sec. 9001, as modified by section 10901) Amends the Internal Revenue Code to impose an excise tax of 40% of the excess benefit from certain high cost employer-sponsored health coverage. Deems any amount which exceeds payment of $8,500 for an employee self-only coverage plan and $23,000 for employees with other than self-only coverage (family plans) as an excess benefit. Increases such amounts for certain retirees and employees who are engaged in high-risk professions (e.g., law enforcement officers, emergency medical first responders, or longshore workers). Imposes a penalty on employers and coverage providers for failure to calculate the proper amount of an excess benefit.

(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 employee’s gross income (excluding the value of contributions to flexible spending arrangements).

(Sec. 9003) Restricts payments from health savings accounts, medical savings accounts, and health flexible spending arrangements for medications to prescription drugs or insulin.

(Sec. 9004) Increases to 20% the penalty for distributions from a health savings account or Archer medical savings account not used for qualified medical expenses.

(Sec. 9005, as modified by section 10902) Limits annual salary reduction contributions by an employee to a health flexible spending arrangement under a cafeteria plan to $2,500. Allows an annual inflation adjustment to such amount after 2011.

(Sec. 9006) Expands reporting requirements for payments of $600 or more to corporations (other than tax-exempt corporations).

(Sec. 9007, as modified by section 10903) Requires tax-exempt charitable hospitals to: (1) conduct a community health needs assessment every two years; (2) adopt a written financial assistance policy for patients who require financial assistance for hospital care; and (3) refrain from taking extraordinary collection actions against a patient until the hospital has made reasonable efforts to determine whether the patient is eligible for financial assistance. Imposes a penalty tax on hospitals who fail to comply with the requirements of this Act.

So in a way the bill will seek to redefine income that previously was not defined as income. There has been a periodic trend in Congress, when Democrats are in power, to move to include a greater reporting of income, unfortunately those trends are rarely reversed during a Republican Congress but at least, except on rare occassions, or not brought anew. So one more round to those that seek to take more of what you have to provide for others. ….. That’s fair… right.

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