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Senate Finance Committee Health Care Bill Key Provisions

Friday, May 20th, 2016

The Senate Finance Committee’s bloom ameliorate bill key points:

1. Takes aftereffect July 2013.

2. Requires U.S. acknowledged association to access insurance.

3. Imposes a banking amends on humans who don’t access insurance.

4. Establishes new allowance exchanges.

5. Subsidizes the acquirement of bloom allowance through those exchanges for individuals and families with assets amid 100% and 400% of the federal abjection akin (FPL).

6. Policies purchased through the exchanges (or anon from insurers) would acquire to accommodated several requirements. In particular, insurers would acquire to acquire all applicants, could not absolute advantage for preexisting medical conditions, and could not alter premiums to reflect differences in enrollees’ health. Provides start-up funds to animate the conception of accommodating allowance affairs (co-ops) that could be offered through the exchanges; absolute insurers could not be accustomed as co-ops.

7. The bill would crave firms with added than 50 workers that did not action advantage to pay a amends for full-time workers who acquired subsidized advantage through the allowance exchanges. As a rule, full-time workers who were offered advantage from their employer would not be acceptable to access subsidies via the exchanges. However, an barring to that “firewall” would be accustomed for workers who had to pay added than a defined allotment of their assets for their employer’s insurance-10% in 2013, indexed over time-in which case the employer could aswell be penalized.

8. Beneath assertive circumstances, firms with almost few advisers and almost low boilerplate accomplishment would aswell be acceptable for tax credits to awning up to bisected of their contributions against bloom allowance premiums.

9. The bill aswell would accomplish abundant Medicaid-related changes.

Tax provisions. The key tax changes in the Senate Finance bloom ameliorate bill are as follows:

1. A 40% nondeductible customs tax would be levied on bloom advantage in balance of $8,000/$21,000 (indexed for inflation), able for tax years alpha afterwards 2012. Added thresholds would administer for over age 55 retirees and assertive high-risk professions (e.g., firefighters, architecture and mining workers), and a college alpha would administer for bloom allowance affairs maintained in the 17 states in which bloom affliction was atomic affordable for the year concluded Dec. 31, 2012. For employees, the employer would accumulated the advantage accountable to the absolute and affair an advice acknowledgment for insurers advertence the bulk accountable to the customs tax. The customs tax would be levied at the insurer level.

2. Employers would be appropriate to address the amount of bloom allowances on employees’ Forms W-2, able for tax years alpha afterwards 2009.

3. For purposes of employer provided bloom advantage (including bloom agreement accounts (HRAs) and bloom adjustable accumulation accounts (FSAs), HSAs, and Archer medical accumulation accounts (MSAs)), the amount of over-the-counter anesthetic (other than doctor prescribed) could not be reimbursed through a bloom FSA or HRA. In addition, the amount of over-the-counter medicines (other than doctor prescribed) could not be reimbursed on a tax-free base through an HSA or Archer MSA. These changes would be able for tax years alpha afterwards 2009.

4. The amends for nonqualified HSA distributions would be added from 10% to 20%, able for disbursements fabricated during tax years alpha afterwards 2010. Allowable contributions to bloom FSAs in cafeteria affairs would be capped at $2,500, able for tax years alpha afterwards 2010.

5. Able for tax years alpha afterwards the achievement date, hospitals would be accountable to new requirements, e.g., a association bloom needs assessment, promulgation and broadcasting of a accounting banking abetment policy, and new advertisement and acknowledgment rules.

6. Able for payments fabricated afterwards 2011, the bill would adapt the accepted advice advertisement claim by eliminating the barring for payments to corporations. The chic of payments with account to which advertisement is appropriate would be antiseptic to cover gross gain for both acreage and services.

7. The attic below itemized medical amount deductions would be aloft from 7.5% of adapted gross assets (AGI) to 10%, able for tax years alpha afterwards 2012. The AGI attic for individuals age 65 and earlier (and their spouses) would abide banausic at 7.5%.

8. The answer for costs allocable to Medicare Part D subsidy would be eliminated, able for tax years alpha afterwards 2010. A $500,000 answer absolute would administer to the accomplishment of officers, employees, directors, and account providers of covered bloom allowance providers. This absolute would be able for accomplishment paid in tax years alpha afterwards 2012 with account to casework performed afterwards 2009.

9. For tax years alpha afterwards 2010, the bill would accommodate for a safe anchorage from the nondiscrimination requirements for cafeteria affairs for an acceptable baby employer. The safe anchorage would aswell administer to the nondiscrimination requirements for defined able allowances offered beneath the cafeteria plan, including accumulation appellation activity insurance, advantage beneath a cocky insured accumulation bloom plan, and allowances beneath a abased affliction abetment program. The safe anchorage would crave that the cafeteria plan amuse minimum accommodation and accord requirements and minimum flex-credit addition requirements.

10. The bill would actualize a acting tax credit, accountable to an all-embracing cap of $1 billion, to animate investments in new therapies to prevent, diagnose, and amusement abiding diseases, able for expenditures paid or incurred afterwards 2008, in tax years alpha afterwards 2008. The acclaim would dusk at the end of 2010.

Let’s Lower Taxes to Get National Health Care, Social Security and Free College!

Wednesday, April 13th, 2016

The key to costs Civic Health Care, analytic Social Security’s continued appellation allotment problem, and traveling to academy chargeless of allegation is to lower taxes. As absurd as this sounds, it’s true. This can be able by eliminating tax deductions and a simple restructuring of the tax code.

Eliminating tax deductions is the key to tax reform. This is because tax deductions are the capital could cause of tax artifice and the inequities associated with our accustomed tax system. It is the tax answer that allows the tax cipher to favor some segments of association over others, abatement the bulk of acquirement the government needs to appropriately armamentarium the programs our association deems important, and leads anon to waste, artifice and corruption.

No austere attack at tax ameliorate can yield abode after acclamation this problem. Therefore, abandoning the tax answer is the aboriginal and a lot of important ameliorate that have to yield place. If accumulated with a simple restructuring of the tax code, these simple reforms actualize a tax arrangement that treats anybody equally. And, if anybody is advised appropriately three things happen: First, the accustomed codes adeptness to favor some segments of association over others is eliminated. Second, tax artifice will decrease. And third, government acquirement will increase.

For example, in adjustment to access tax acquirement from corporations we have to aboriginal change the tax anatomy that allows businesses to reduce, adjournment or annihilate the taxes owed. Currently, corporations decrease from their gross sales those deductions begin in the tax cipher and labels the consistent amount the net profit. This amount is again acclimated as the base for chargeless the taxes owed. The aboriginal $50,000.00 of net accumulation is burdened at 15% and aloft $50,000.00 of net accumulation the tax increases up to 35%. This creates a actual able allurement to add as abounding deductions to the tax cipher as accessible in adjustment to abate the net accumulation so that the agnate tax accountability is lowered.

The band-aid is to alter the tax on net profits with a baby tax on the gross sales. By definition, the tax on gross sales agency that there are no deductions. This ameliorate eliminates the adeptness of corporations to use the deductions begin in the tax cipher to reduce, adjournment or annihilate the taxes owed, eliminates the bribery associated with the accustomed tax code, and creates the akin arena acreage that requires all corporations to pay their fair allotment of taxes. And, if all corporations pay their fair allotment of taxes, government acquirement increases.

The baby tax on gross sales aswell produces a actual baby accumulated tax liability. In fact, the business tax corporations will now be appropriate to pay is so baby that employer amount taxes can be broadcast to cover Civic Health Care and still aftermath an all-embracing tax accountability lower than what corporations are currently appropriate to pay. This all-embracing lower tax accountability will be the base for accumulated accepting of their broadcast amount obligation.

These aforementioned attempt administer to alone taxes. If deductions are eliminated, the adeptness of individuals to reduce, adjournment or annihilate the taxes owed comes to an end. This agency that the book that now occurs, area affluent individuals end up paying beneath in taxes than poorer individuals, is no best possible. This translates into added acquirement for the government.

The abolishment of claimed tax deductions aswell heralds the end of claimed assets taxes. The abolishment of assets taxes presents as a tax abridgement and this tax abridgement allows for the amplification of amount taxes to cover Civic Health Care and Accessible Education. These new amount taxes will be readily accustomed because individuals will still be paying beneath in all-embracing taxes and yet will accept added in benefits. A lot of humans will artlessly admiration why these reforms had not been implemented earlier.

The abolishment of tax deductions and a simple restructuring of the tax cipher needs to be implemented as anon as possible. This is because government acquirement aloft beneath the accustomed arrangement is inadequate. For example, in budgetary 2007 the government calm $2.4 abundance dollar, however, it spent $2.8 abundance dollars. This created a arrears of $400 billion dollars and this $400 billion dollars was added to the civic debt (which is rapidly abutting $10 abundance dollars). Contrast these amounts with the acquirement generated by the reforms set alternating in my proposal. Based on actual bourgeois numbers, my tax ameliorate plan will access government acquirement from $2.4 abundance dollars to a amazing $3.31 abundance dollars. This agency that rather than active a account arrears we will be active a account surplus.

This account surplus allows us to armamentarium all accustomed programs, actualize and absolutely armamentarium Civic Health Care, boldness Social Security’s continued appellation allotment botheration and aggrandize accessible apprenticeship to cover college, chargeless of charge. And, as absurd as all this sounds, it was able by blurred taxes!