Thursday, June 11, 2009

Clue that Health Insurance Tax to Be Paid by Employee

While taxing health insurance remains on the table, no politician has stated who would pay the tax, the employer or the employee. A clue pointing to the worker came in a New York Times article:

"... proposals being discussed by the Senate Finance Committee and others in which small companies would have to pay some portion of their payroll toward health benefits but would also receive some form of tax credits to defray the expense."

It wouldn't make sense to tax small employers while simultaneously offering tax credits. Signs point to workers paying taxes on their employer provided health benefits. Is it an intermediate step to corporations dumping the health insurance benefit? Time and a detailed conference committee bill will show.

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