Tag Archive: Congress


As we move down the road since the passage of Healthcare reform the “slow trickle” of information begins to come out on how healthcare for everyone is going to be paid for and as expected it will be paid for on the backs of working Americans.  New information has just been released that says “over the counter medications can no longer be used under a Flexible Spending Account unless there is a prescription from a doctor”. The new requirements take effect in January 2011 and the IRS has spelled out what needs to be done to meet the requirements.  If you have not guessed already and what some of us knew would happen this change is being made to raise revenue and help pay for premiums of the lower-income uninsured.

Now we know why 17,000 additional IRS agents are being hired, so they can make sure “working Americans” hand over their money to pay for all of this!!  The FSA benefited working people by helping them pay for prescriptions, office visits and over the counter medication and this are slowly being taken away!  We hear our government say “we will tax the rich” to pay for all of this.  Well, I hate to be the bearer of bad news but there are not enough “rich people” to pay for all of this and the plan all along was to have the working people pay for this.  The government has to get revenue from somewhere and the hiring of all these IRS agents is to make sure they get it!  Our only hope is the ballot box so I urge you to continue to vote out the current politicians in office and do this in every election until they get the point that we are all fed up and not going to take this anymore!!  I have linked to the article below.
http://www.workforce.com/section/news/article/irs-says-flexible-spending-accounts-cant-reimburse-otc-drugs.php

As we enter into the end of 2010 the media is full of reports about the increase in taxes that are on the way whether by the expiration of the Bush tax cuts or an increase of taxes imposed by the government.  I have come across and article that was written by Lanny Davis who was special counsel to President Clinton in which he discusses a new ” tax increase bill”  introduced in Congress.  According to this bill there will be a 1 percent “transaction tax” on every financial transaction and we would all pay one cent for every dollar for these transactions whether by cash, credit card.  The article says this tax will not apply to the buying or selling of stock.

Looking at this on the surface some might say ” it is only a penny and it is no big deal” but I say “It is a big deal” if you look at the history of tax increases.   Remember the tax on your phone bill that was still being levied until recently to pay for the  Spanish-American war of  1898!!  This was just recently removed from the phone bill after 100 years and the war only lasted a year! Yet, we as the tax payers were not offered a refund were we?  Look at the payroll tax which started out as “1 percent” deducted from take home pay and compare to where it is today!! These are just two examples but there are many more of this government trying to solve their out of control spending by raising taxes!!

You can be assured that if this bill passes Congress and this “1 percent” tax on financial transactions is imposed a few years later Congress or the President will decide this needs to be increased by 2,3 or 4 percent!!  It will never be enough and this is why we need to pay attention when a bill like this gets introduced in Congress and defeat it now before it takes root.  Because if this “tax bill” is allowed to take root then we will be stuck with this tax for 100 years just like 100 year old tax on your phone bill to pay for the Spanish-American war of 1898!

I periodically post about the amount we pay in taxes and the increases that are headed our way to pay for all this government spending.  With the passage of the healthcare bill we are certain to pay more taxes because this is the only way to pay for it and I have said previously that we as the American people were not told up front what was in this bill because the rage would be even worse than it is now.  As we track down the road for full implementation of the healthcare bill I have discovered another tidbit in the bill that could affect a lot of the Americans with a higher tax bill.

I have copied a portion of HR3590 (section 90020) which states the following:

“Title IX: Revenue Provisions – Subtitle A: Revenue Offset Provisions – (Sec. 9001, as modified by section 10901) Amends the Internal Revenue Code to impose an excise tax of 40% of the excess benefit from certain high cost employer-sponsored health coverage. Deems any amount which exceeds payment of $8,500 for an employee self-only coverage plan and $23,000 for employees with other than self-only coverage (family plans) as an excess benefit. Increases such amounts for certain retirees and employees who are engaged in high-risk professions (e.g., law enforcement officers, emergency medical first responders, or longshore workers). Imposes a penalty on employers and coverage providers for failure to calculate the proper amount of an excess benefit.

(Sec. 9002) Requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer-sponsored group health coverage that is excludable from the employee’s gross income (excluding the value of contributions to flexible spending arrangements).”

Take a look at the provision sec 9002 that requires employers to include on the w-2 the employer sponsored health coverage!!  This is what I have been talking about and what is about to happen to the working people of this country!! This provision was put here on purpose because the tax on your health coverage will be so great that it will force all of us into the government plan because we will or cannot afford the higher taxes!!  I continue to implore you to vote out the incumbent and elect someone else!! If you are not registered to vote then do so and vote for someone new!!  I get tired of my money being stolen from me and given to the government or people who do not want to work.  Eventually, we will have given all the money we have and it will not be enough to continue down this road!! Just look and Europe and Greece as an example!!