Stage Five – The “taxpayers” realize their previous healthcare premium was considered a pre-tax deduction. (Progressives call these “tax expenditures”).
Listen to the embedded video at 27:00 to understand how the progressive Obamacare architects view “tax deductible” healthcare premiums as “tax expenditures” and how they have structured the system to reflect what comes next. This is how employer provided healthcare premium payments are now going to be considered income.
[Forward video to @27:00]:
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The employer paid premium, and the subsidy provided to assist in Obamacare premium coverage, are both considered a part of taxable earnings, “wage income”.
I’ve been shouting about this from the rooftops for four years and it’s just not sinking in to most people.
♦ So say your employer provided healthcare premium is $50 week (2,600 yr) that means your employer is probably paying $100 week (5,200 yr.) to provide the plan to you. Beginning next year THAT $5,200 IS INCOME and the $2,600 is no longer tax deductible. Total additional taxable income/liability = $7,800
Change the figures to reflect a family plan and it might be $100/ week (from you) and $200/week (from employer). That adds $15,600 to taxable earnings for tax liability calculations. Cha-ching $$ to the gov’t and instead of a refund check, you might be actually sending in a check to the IRS.
♦ So say you don’t have employer provided coverage, and you are not wealthy, and you are getting a subsidy to purchase your ObamaCare. If your federal subsidy is $300.00/mo, that means at tax time $3,600 is added to your income as tax liability is determined.
Change the subsidy to reflect a family plan ($700/mo) and you might have $8,400 added to your adjusted gross income as tax liabilities are determined.
Stage Six – The same year employees realize their W2 now shows their employer healthcare benefit as part of their taxable income – Employers will drop their employee coverage. (October 2015 notices for January 1st 2016 cancellations) ALSO (The 2015 W2 and I-1099 forms will show the movement of premium to income).
Stage Seven – The “taxpayers” are joined by the previous “non taxpayers” as the bills come due and tax returns are filed. (April 2016 and April 2017) ALL Tax refunds are reduced substantially as revenues are needed. Folks realize their subsidy is now part of their earnings – that has a much bigger tax liability.
