Posted on 11/06/2009 2:22:55 PM PST by atomicweeder
There is a provision (section 532 on page 325) of the house bill that will increase taxes on lots of people.
The provision places a $2,500 cap on qualifiying benefits in Flexible Spending Accounts (so called "Cafeteria Plans"). Currently there is no cap.
Here's a real example. I own a small business and I provide up to $10,000 a year, per employee, into an FSA. If an employee making $50,000 a year uses the entire $10,000 for family health care coverage, it's all tax-free.
Under the health care plan (both Pelosi's and the Senate Finance Committee version), only the first $2,500 is tax-free. The employee will have to pay taxes on the balance ($7,500)
So, let's assume that with other deductions, the employee is effectively in a 15% tax bracket. They now have to pay $1,125 extra in Federal taxes (plus more for state).
They haven't done anything. Same job. Same health care plan. Same salary.
Wham! $1,125 a year less.
What's that going to do to the economy?
I think that is the idea.
Bush tax cuts expire.
Food’s going up.
Gas is going up.
Gee.
You know, I think I am going to buy a copy of “The Manchurian Candidate.”
In all Bolshevik revolutions, the merchant class ends up being destroyed.
(Unless you have a relative in government)
But, Congressman Moore from Kansas states on his page: “Especially in these tough economic times, we should be doing everything we can to reduce the financial burden on middle class Americans, which is why households making less than $1 million will not see their taxes increase to pay for this program.”
So, who are you going to believe? The bill or the Congressman?
“I think that is the idea.”
Actually, the “idea” is to force everyone into having unnecessary insurance coverage. Dems detest the idea of Americans shopping for medical care the way they do autos. They want everyone in insurance plans: that way, they can better “control” things such as “unnecessary” use or “excessive” prices. Heaven forbid that the free market be used to incent appropriate behavior. It’s the same mentality that refuses to allow you to purchase health insurance across state lines.
Auto insurance? No problem.
Life insurance? No problem.
Homeowners’ insurance? No problem.
Pet insurance? No problem
Health insurance? HELL NO!
The U.S. has had a personal savings gap for decades (one of the lowest savings rates in the developed world) and the Dims are always trying to limit incentives to save (they fear the tax breaks take away from federal money from their political agenda).
Additional personal savings, by ANYONE FOR ANY REASON, is a net positive to the economy, particularly economic stability (as opposed to the volatility of cheap credit).
PLUS the RATS intrend to let the 10% bracket revert to the 15% bracket. This will mean those using the 10% bracket now will see a 50% increase in their taxes. The lower income folks will be hardest hit. Thanks RATS.
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