I think you are earnestly raising questions and not just trying to have a little fun--
Thank you, I am not trying to have a little fun, I am earnestly raising questions. but there is fun but not in the satire sense.
1. Employers are paying part or all of the costs for the health insurance of employees. This is a benefit to employees which could be worth tens of thousands of dollars per year.
Agreed, but as LJ pointed out, if no plan were offered, would the plan worth be offered in salary increase? Doubtful. Maybe a bit, but not the full value. As salaries rise, so does the employee and employer tax burden.
2. Whatever the employer is paying for that plan is a value to each employee, as most people would seek to get insurance coverage if it were not provided through their employer.
They may seek but not be able to afford I fear.
3. Employees do not pay tax on the value of this benefit under current law.
Agreed. And IMHO I don't think they should. LJ pointed out reasons I agree with. No need to retype or cut and paste here.
4. Other employer provided benefits (like company cars or excess value life insurance) are taxed at the value the employee receives (e.g. when I had a company car, I had to file quarterly reports showing what my mileage was for company business and personal business, and had to pay income tax on the value of the benefit for my personal business).
Different types of benefits. HC benefits I think are in thier own ""category"
for lack of a better term
5. Many employers also provide enhanced insurance coverage (Cadillac Plans) to their senior management at a cost far in excess of the policies offered to the other employees. The senior managers do not pay tax on the value of this benefit.
If one rises to the point of senior management and the benefits are better, more power to them. I do not begrudge them and their benies nor salaries nor any other perks. In the company I am employed by, have better perks that are better than some but not as good as others. I do know that since obamacare has been around, we do have more "part timers" doing production work than before. We also use more "temps" than before.
6. This thread has talked about 2 things--all employees paying taxes on the value of their insurance, or at least senior managers paying such taxes on their plans (or possibly on the excess value of their plans as compared to those of the rank and file employees). I have vouched my support for both plans.
I disagree. Either tax all plans or no plans. If you only tax "a" particular type of plan, what if a company only offers that type of plan to all employees? Will they then downgrade the plan so it's within the tax deduction area?
7. People who obtain coverage on their own can but whatever plan they want with no tax consequences precisely because they are not receiving any payment of the premiums by an employer. They are paying for what they are getting, there is no benefit from an employer (or anyone else) to consider.
Agreed.
8. If you do not want to pay any additional taxes for your health insurance, you can easily reject your employer's offered coverage and buy any plan you want on your own with no tax consequences.
Yes, but now I pay full price with no help/benefit from employer. This goes back to will my salary increase the by the amount the employer pays to the medical plan? Pushing 60 (59 in a week) I would "take the bite" and get insurance pretty much regardless of whether I a pay raise or not. But iff I were young again I might not. Especailly if I were not married and childless.
9. You are correct about the 10% (of AGI) threshold for medical expense deductibility, but I have known many unfortunate people who have reached that threshold year after year. All it takes is a major illness.
Yes there are, but more are not in that category and do not pay out that much in medical expenses.
10. I don't understand your "tax deductible" question.
I don't remember the point I was trying to make/ask about. I'll have to review.
But regardless of who is footing the bill, the benefits are a part of an employee's compensation package and people should recognize it. This is part of what you are paid for your work, not a gift or something the employer gets for free.
I do recognise that benefits are part of a compensation package, just as vacation days and holidays are too.
But I do believe there is a difference between a HC benefit and a company car.
).
