Bill Introduced to Delay Health Insurer Tax for Small Businesses & FamiliesTax Professionals' Resource
November 27, 2013 — 1,463 views
Two Congressmen, Ami Bera and Charles Boustany brought out a bipartisan bill last month for making health care much affordable for small businesses, working families and seniors. This bill named Small Business and Family Relief Act, if passed, will lead to a delay of two years in the taxation of health insurance which is a part Obama’s Affordable Care Act and is scheduled to begin next year.
Need the bill for helping the working class
Ami and Charles, are both also physicians. Ami said that with this bill they are trying to do everything possible to bring down the health care cost for middle class families as these prices are skyrocketing presently. The Affordable Care Act is a good thing and will give millions of Americans a chance to get insurance cover for themselves. But then it also has certain problem areas and those need to be fixed so that it can help a lot more people in a much better way.
Fixing the problem areas would mean that it might take up some time. This newly introduced bill will lead to a delay until 2016 in the tax collection related to the health insurance. This delay will allow these markets to get enough time to maintain stability while offering immediate relief to seniors, small businesses as well as working families.
Joint Committee on Taxation as well as Congressional Budget Office has mentioned that the tax on health insurance will come out to customers as higher premiums. Starting at $8.4 billion from 2014, the tax will go up to $11.3 by 2015.
Problems with the tax collection system
The tax collection system is designed in a disproportionate way and will affect seniors with Medicare Advantage, small businesses as well as those individuals who buy their health insurance by themselves. In the first two years itself it is projected to cost around $600 extra to any typical family. Medicare beneficiaries who are enrolled in an Advantage plan or even under any prescription drug plan will incur higher costs and reduced benefits due to this tax.
The lawmakers said that the cash system of accounting where report records are entered once the revenue is received is appropriate as well as simple for both businesses and individuals.
The letter sent by these congressmen has already received support from organizations like the American Dental Association, the American Farm Bureau Federation, American Institute of CPAs and American Council of Engineering Companies.