The Senate’s health care Bill becomes more abhorrent the longer one examines it.
It seems that the value of the employer-sponsored health insurance (H.R. 3590, section 9002) would rather be used as a means of calculating the amount of the 40% excise tax in section 9001.
[For analysis of this tax issue as well as other tax issues in H.R. 3590 and the Manager’s Amendment, see the text of the Joint Committee of Taxation (jcx-61-09).]
In analyzing H.R. 3590, I presumed earlier (search H.R. 3590 is search box) that section 9002 would be used as an entryway to tax the value of health insurance by including it in an employee’s gross income under section 61.
Given the increase of premiums that will occur with the unfortunately likely passage of this Bill, many people are likely to be subject to the 40% exise tax.
In addition, I comment negatively on a statement of President Barack Obama’s advisor, David Axelrod, in which Axelrod explained that a tax on insurance companies would force insurance companies to bring down the price of so-called Cadillac policies (see views of Allan Sloan, and the SEIU).
Well, as I have seen on my bill, cable companies also recieve taxes on their services. What do they do? They assess it to subscribers. I think insurance companies will do the same.