would include taxing employee health benefits paid by their employer? If I understand this WSJ article correctly, not only does he plan to cut Medicare, but also tax health benefits. http://online.wsj.com/article/SB1223...gn2008_mostpop
So if an employer spends $8,000 on health insurance for an employee, even though that money goes to an insurance company, I would be responsible for paying taxes on that money. Is this correct?
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would include taxing employee health benefits paid by their employer? If I understand this WSJ article correctly, not only does he plan to cut Medicare, but also tax health benefits. http://online.wsj.com/article/SB1223...gn2008_mostpop
So if an employer spends $8,000 on health insurance for an employee, even though that money goes to an insurance company, I would be responsible for paying taxes on that money. Is this correct?
I have something about this. I'm looking for it!! lol
I retired from General Electric March 1, 1998 after 32 years of service.
While I was an employee there, the company provided a life insurance policy on me. After I retired, the policy continued but dropped in value each year. I was retired, living on a pension and Social Security and had to pay federal and state tax on the value (what I would have had to pay for) that policy.
Found what I was looking for Mike! Just highlighted the big points. Click the link for the whole article.
How Do the Presidential Candidates Tax Plans Affect Taxpayers Marginal Tax Rates?
The Presidential candidates have proposed comprehensive tax plans that reshape tax policy in important ways. The two candidates have put forward two very different visions, with Senator Obama's tax plan emphasizing redistribution and Senator McCain's tax plan focusing more on economic growth. A perhaps neglected aspect of their tax plans is how they alter effective marginal tax rates, the amount of tax that people pay out of their last dollar of income.
The major findings include:
* To the surprise of some, even though Senator Obama's tax plan lowers taxes for the bottom four quintiles, marginal tax rates would fall only for the very lowest-income couples. Taking both income and payroll taxes into account, those at the very bottom of the income distribution would see their effective marginal tax rates fall from 27.4 percent to minus 58.6 percent due to proposed changes to the earned income tax credit and Senator Obama's new "Making Work Pay" credit.
* Most low- and moderate-income couples would see their effective marginal tax rates rise, in some cases, significantly. Indeed, some low- and moderate-income taxpayers will see their marginal rates rise to more than 50 percent.
* High-income taxpayers can also expect their effective marginal tax rates to rise—to 47.2 percent-under Senator Obama's tax plan. This increase is caused by rolling back the 2001 and 2003 reductions in the top two tax rates, curtailing deductions and exemptions at high income levels, and potentially raising Social Security taxes.
* Senator McCain's tax plan also changes marginal tax rates. His proposal to replace the exclusion for employer-based health insurance with a new health tax credit boosts taxpayers' taxable incomes by their health insurance premiums which generally pushes taxpayers into higher tax brackets, but not to as great an extent as Senator Obama's tax plan.
Found what I was looking for Mike! Just highlighted the big points. Click the link for the whole article.
How Do the Presidential Candidates Tax Plans Affect Taxpayers Marginal Tax Rates?
The Presidential candidates have proposed comprehensive tax plans that reshape tax policy in important ways. The two candidates have put forward two very different visions, with Senator Obama's tax plan emphasizing redistribution and Senator McCain's tax plan focusing more on economic growth. A perhaps neglected aspect of their tax plans is how they alter effective marginal tax rates, the amount of tax that people pay out of their last dollar of income.
The major findings include:
* To the surprise of some, even though Senator Obama's tax plan lowers taxes for the bottom four quintiles, marginal tax rates would fall only for the very lowest-income couples. Taking both income and payroll taxes into account, those at the very bottom of the income distribution would see their effective marginal tax rates fall from 27.4 percent to minus 58.6 percent due to proposed changes to the earned income tax credit and Senator Obama's new "Making Work Pay" credit.
* Most low- and moderate-income couples would see their effective marginal tax rates rise, in some cases, significantly. Indeed, some low- and moderate-income taxpayers will see their marginal rates rise to more than 50 percent.
* High-income taxpayers can also expect their effective marginal tax rates to rise—to 47.2 percent-under Senator Obama's tax plan. This increase is caused by rolling back the 2001 and 2003 reductions in the top two tax rates, curtailing deductions and exemptions at high income levels, and potentially raising Social Security taxes.
* Senator McCain's tax plan also changes marginal tax rates. His proposal to replace the exclusion for employer-based health insurance with a new health tax credit boosts taxpayers' taxable incomes by their health insurance premiums which generally pushes taxpayers into higher tax brackets, but not to as great an extent as Senator Obama's tax plan.
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