Sunday, August 22, 2010

From the mailbag: About ObamaCare© and your W-2

No blog (or bloggers) hold ObamaCare© in more contempt than IB, but we have been (and continue to be) scrupulously fair in our criticism of this train-wreck. In that spirit, it seems necessary to debunk an email currently making the rounds (in fact, there are several versions) which goes something like this:

"Beginning in 2011, employees covered under their company's health insurance plan will see the value of that plan reflected on their W-2's, and they will owe taxes on that value."

Wrong on three counts:

First, the relevant portion of Obamacare© doesn't take effect until 2018.

Second, only so-called "Cadillac plans" are subject to this provision.

And third, there is no "tax" on these benefits. Carriers which continue to sell relevant plans will be taxed on them, and of course no business (including insurers) pays any taxes, so these increases will be passed along. But there's no specific amount that can be imputed to that increase, so individuals won't see it reflected on their W-2's.

There are lots of reasons to oppose ObamaCare©, and of course most people want to see it repealed, but let's continue to base our arguments on the facts.
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