Got this from a friend, so I researched it on the Internet, then copied and pasted the applicable section of the law. In addition, I checked this out with my tax consultant and she says it's valid. So I edited the initial E-Mail to eliminate the rhetoric and added my comment at the end about preparing for the tax bite come April 15, 2012. This is NOT intended to be political in any way. Make your own judgments based on your values, the ONLY reasons I'm sending this is to warn you to analyze your financial situation and adjust your withholding accordingly. ~~ Friend
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I contacted my Congressman about House Bill 3590, the Health Care bill and asked for a summary of changes. The Aid directed me to go tohttp://www.thomas.gov/, enter "HR 3590" in the search box and look for "CRS Summaries."
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 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 fifteen (15) percent that don't have insurance and it's only part of the tax increases, but it's not really a "tax increase" as such, it a redefinition of your taxable income.
Not believing this I researched the CRS Summary and here's what found:
Title IX Revenue Provisions—Subtitle A: Revenue Offset
"(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)."
Joan Pryde, is the Senior Tax Editor for the Kiplinger Letters. Go to Kiplinger'sand read about the thirteen (13) tax changes for 2010 that could affect you.
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. So vote intelligently, based on your values. But also adjust your tax withholding, or increase your savings, so that you aren't surprised and put in a jam when your federal income taxes are due on April 15, 2012.