Tag Archive: IRS


Last year the President proposed a payroll tax cut which was implemented for working Americans. While not a lot of money the cut is appreciated and every little bit helps.  However, in the debt ceiling agreement the continued payroll tax cut was not included and postponed for discussion at a later time.  To me this should have been a very important part of the discussion because it is possible the Congress would let this sunset and then the middle class would have their taxes raised on the sly to help pay for this continued unnecessary spending. So the Congress could be ready to “stick it” to us again!!

Don’t think the President is off the hook either for continuing to push for a continued payroll tax cut which I appreciate.  As we found out when we filed taxeS last year this increased the income that was brought home and then had to be declared income and taxeS paid so really no one came out ahead.  If the President really wanted to make a good impression not only would he continue to push for an extension of a payroll tax cut, but tell the IRS they are not allowed to collect any tax on the extra money working Americans received through a break in the payroll tax. Maybe instead of turning the IRS loose on Americans we should have them go after Iraq and Afghanistan because with all that money we gave them tax-free, there would be more than enough to close the budget gap!

http://www.reuters.com/article/2011/08/01/usa-debt-payroll-idUSN1E77014520110801

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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