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Tuesday, January 12, 2010 - 7:49amSanction this postReply
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The Senate's proposed health care bill includes a provision to tax high cost employer-sponsored health coverage. (The House bill does not.) I was surprised to read the tax applies to coverage when the employer is a government, but it does:

SEC. 4980I. EXCISE TAX ON HIGH COST EMPLOYER-SPONSORED HEALTH COVERAGE.
....

(E) GOVERNMENTAL PLANS INCLUDED- Applicable employer-sponsored coverage shall include coverage under any group health plan established and maintained for its civilian employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any such government.
Source: http://www.opencongress.org/bill/111-s1796/text
But hold on. The federal government is going to tax itself? LOL. Shouldn't the tax be imposed on the employee?


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Tuesday, January 12, 2010 - 1:59pmSanction this postReply
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Of course, it shouldn't be imposed at all.

It seems to me that all of these new taxes and penalties are being set up in ways that no individual can easily reject them. The insurance companies are being taxed, so those costs will be passed on in their premiums. The individual beneficiary has nothing specific they can refuse to pay to the government.

Likewise, the so-called penalties for refusing to purchase insurance look like they will be assessed on individual's tax returns. Therefore those who might otherwise withhold payment, may instead have it simply withheld from them.

I think they are making an effort to bury these taxes and penalties deep enough into the costs so as to prevent any concerted public effort at 'civil disobedience'.

jt

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