Congress May Require Individuals to Help Cover Cost of Health Care Reform

The Senate Finance Committee has taken the lead in developing health care reform legislation, and its chairman, Sen. Max Baucus, has stated his desire to pay for reform, primarily through changes in the health-related provisions of the IRC. Of significant interest to the chairman is a provision to m...

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Bibliographic Details
Published inExecutive's Tax & Management Report Vol. 72; no. 8; p. 4
Main Author Massey, Bart
Format Trade Publication Article
LanguageEnglish
Published Riverwoods CCH INCORPORATED 01.08.2009
Subjects
Congressional committees
Cost control
Donations
Employers
Executives
Federal employees
Federal legislation
Health care expenditures
Health care policy
Income taxes
Presidents
Reforms
Tax deductions
Tax increases
Tax planning
Tax reform
United States > US
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Summary:The Senate Finance Committee has taken the lead in developing health care reform legislation, and its chairman, Sen. Max Baucus, has stated his desire to pay for reform, primarily through changes in the health-related provisions of the IRC. Of significant interest to the chairman is a provision to modify the current exclusion for employer-provided health benefits. President Obama has also targeted higher-income individuals as a possible source for revenues for paying for health care reform. He proposed limiting the benefit of itemized deductions for higher-income individuals to that provided by a deduction in the 28% bracket. One House proposal would hold individuals responsible for obtaining and maintaining acceptable health care coverage. Those who do not would pay a tax equal to 2% of adjusted gross income over their income tax return minimum income filing threshold. Employers should begin considering how the various proposed modifications of the exclusion for employer-provided health care would affect the benefit packages they offer to employees.
ISSN:1098-1594