Thursday, July 15, 2010

Did Obama Lie? Health care tax will hit middle America

Then-candidate Barack Obama said, "No family making less than $250,000 a year will see any form of tax increase." (September 12, 2008)

One little-known fact about the health care bill that Obama pushed and Congress passed is found in the 2011 W-2 Tax Forms.

Title IX Revenue Provisions—Subtitle A: Revenue Offset
"(Sec. 9002) Requires employers to include in the W-2 form of each employee
the aggregate cost of applicable employer-sponsored group health coverage
that is excludable from the employee's gross income (excluding the value of
contributions to flexible spending arrangements)."

So 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.

Also, go to Kiplinger's and read about the thirteen (13) tax changes for 2010 that
could affect you.

If this doesen't get to you, then check your pulse. You may be a flatline...

Should you want to verify this, go to, enter "HR 3590"
in the search box and look for "CRS Summaries."

Is this a tax increase? Does Obama think we are stupid?

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