Another delay in services but not in tax payment Last Friday the Obama administration announced the delay in the requirement for individuals applying for federal aid in acquiring health insurance for the year 2014. Delayed until 2015 is the requirement to provide proof of what specifically the company you are working for provides you in terms of health care insurance. You are still required to provide the state insurance exchange [which does not exist in 30 states and HHS has indicated will not be ready for October 1, 2013 registration date] your annual income. It is important to remember that you are already paying special taxes for Medicare and more importantly Medicaid health insurance services. Here is an article from the New York Times in December of 2012. New Taxes to Take Effect to Fund Health Care Law By ROBERT PEAR Published: December 8, 2012 New York Times To help finance Medicare, employees and employers each now pay a hospital insurance tax equal to 1.45 percent on all wages. Starting in January 2013, the health care law will require workers to pay an additional tax equal to 0.9 percent of any wages over $200,000 for single taxpayers and $250,000 for married couples filing jointly. The new taxes on wages and investment income are expected to raise $318 billion over 10 years, or about half of all the new revenue collected under the health care law. Ruth M. Wimer, a tax lawyer at McDermott Will & Emery, said the taxes came with “a shockingly inequitable marriage penalty.” If a single man and a single woman each earn $200,000, she said, neither would owe any additional Medicare payroll tax. But, she said, if they are married, they would owe $1,350. The extra tax is 0.9 percent of their earnings over the $250,000 threshold. The point is you are paying now for services that have already been called into doubt by delays from the administration. HHS is not ready to implement this very complex 20,000 page health care law incorrectly name the Affordable Care Act.
Posted on: Tue, 09 Jul 2013 15:14:20 +0000
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