Tax Time

Found this over at Theo Spark. I haven't done any checking on the provenience of this, but I seem to remember it's been proposed before. Got shot down the last time after too many congressmen began receiving death threats.

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 for 2009 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.

Health insurance was originally provided to workers when FDRs wage controls held wages down to nonviable levels. It was not considered part of the wage because the benefits were pretty much the same across the board. If this actually happens, and your original insurer doesn't go out of business, your employer would be doing you a favor by dropping your insurance altogether, and throwing you to Obamacare.

Of course since unemployment insurance payments are taxable as income, I see no reason why federally provided health care should fare any differently.