martindale.com
Legal Library
|
Health Care Reform: Senate Explores Possibility of Taxing Employer Health Plans |
August 14, 2009
Previously published on August 2009
Currently, about 61% of Americans are covered through employer-provided group health insurance. Under the federal tax rules, employees do not pay taxes on health benefits, and employers are able to take a deduction for the cost of the health insurance provided. This favorable tax treatment of health benefits has encouraged employers to offer health coverage, and has essentially allowed employees to obtain health insurance at a steep discount equal to their effective tax rate. However, this tax exclusion represents one of the largest single subsidies in the tax code, and according to the Joint Committee on Taxation, has reduced federal tax collections by a total of $246 billion in 2007. This has prompted the Senate to take a look at taxing these benefits in an effort to fund health care reform, which is estimated to cost in excess of one trillion dollars over ten years.
|
The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
Practice Area Resource Centers
|
|
RSS | Blog | Advertising Opportunities | Site Map | Contact Us