Well, that's not all. The Senate Finance Committee has proposed several options for funding healthcare reform. One of the options is to cap or eliminate the employer group health tax exclusion.
Currently, healthcare premiums and contributions (paid by you and your employer) are taken from your paycheck before taxes are deducted. If these health benefits are taxed, it's estimated you will lose between 9 and 14 percent of your take-home pay, depending on your household income and tax situation.
Here's what the opponents are saying...
Proposed healthcare reform impacts you!
The U.S. Congress is moving rapidly to create new healthcare legislation that could have a dramatic impact on your take-home pay.
The government needs to fund health insurance for 48 million uninsured Americans.
You don't currently pay taxes on your health insurance, dental, or vision premiums. You don't pay taxes on your flexible spending account (FSA) and health reimbursement arrangement (HRA) contributions. Congress is considering taxing these benefits.
Why should you care about taxing health benefits?
Taxing these benefits will have a direct, negative impact on your paycheck! Whether you're single or have a family, your take-home pay will decrease.
If Congress votes to tax benefits provided by your employer...
You will pay more for healthcare out of your own pocket. It will reduce your take-home pay, increase your taxes - and individuals and families who use FSAs and HRAs will be penalized even more.
Taxing health benefits provided by employers would affect millions of hard-working Americans:
- Employers will have less money to provide healthcare coverage to their employees.
- Some industry experts predict employers may reduce or eliminate employee health insurance as a result.
- Employees will pay more taxes and bring home less pay.
