Also If I give an employee a gift with a value of 200.00 or more I have to report it as income to the employee and it is taxed. We gave alot of gifts of 1000 or 2000 to some of our employess and they had to pay the taxes.
Yes, I just got to order my 25-year gift, and a taxable charge appears on my w-2 form. I get extra life insurance as well, and THAT appears on my w-2 as a taxable item.
Oh, and because I put more into my 401-k than I'm allowed to, at the end of the year THAT appears as taxable income as well, because it's over the $15,000 limit (just like Bush is proposing for health care costs).
What I do hope is the setup takes into account the number of dependents a person has, so it doesn't punish large families. Large families are already hit by the AMT.