So, as a CPA, if I understand the news, Senator Kennedy plans to required each employee to have health insurance.
Then, President Obama, you are considering taxing the benefits.
Sorry to say, I am speechless (which of course why I am writing).
This sounds like a Republican proposal to tax the middle class; have you been hanging out Dick Cheney?
Surely I am disappointed that the Government still
is gving money to Wall Street. My wife, a teacher,
just got a pay cut. I have friends with no jobs.
It seems that the new Government is much
like to old Government.
Current law is a great tax loophole. Most of the wealthy pay no death tax;
plus their estate gets to avoid income taxes when the estate sales its assets.
American wealth was created by the American way and our great laws.
The wealthy estates can pay their fare share. Limited the exemption to
$1.200,000 and not the $7,000,000.
So, we were all so mad when AIG had a big party with the bail out money. Yet, are we not doing the same by "gifting" money as a tax rebate? Let's face it, none of us will spend our money buling an asset which will help in the future to make America strong, free and productive.
Our tax rebate just covers the cost of food (1,000 is less than $3 per day)!
I say cancel the rebates. Fix the electric grid, the roads, railways, the school rooms and the rest of the Country that was ignored for the last 8 years.
We seem to be spending money on Iraq's infrastructure but not ours.
The value added tax is similar to a sales tax.
The value added tax (VAT) is paid by the manufacturer on each item
purchased. Thus, it limits jobs by taking cash from the business, and
paying the money to the Government.
Each step in the manufacturing process and distribution process pays the
VAT. The consumer also pays the VAT (just like a sales tax) when he/she
buys the product.
The sales tax is paid only once, when the cosumer buys the product.
Because of outsourcing to foreign business, the U.S, income tax base
has been reduced. America does not collect income tax on the profit on
good manufactured oversease. American only collects in the income tax
on the income from distribution to the consumer.
Our Congress (which is where all tax laws begin), can reduce our income taxes
by using a VAT or a sales tax.
A 8 percent sales tax, would balance this years $1.2 trillion deficiet.
Many employees are not receiving the benefits health savings accounts.
The stimulus plan improves these benefits. The IRS has very good information on the use of the accounts by you and your employer.
Here is a link for you and your employer
www.irs.gov/publications/p969/index.html
