1 Citizens for Tax Justice December 11, 2009 Would the Senate Democrats proposed excise tax on highcost employer-paid health insurance benefits be progressive? Summary Senate Democrats have proposed a new, very-high-rate excise tax on employer-paid health insurance benefits that exceed certain levels. The goal is to force employers to eliminate such excessive benefits. Congressional analysts assume that employers then will replace their employees lost health insurance benefits with increased taxable cash wages. Proponents of the plan argue that this trade-off would be a progressive reform to the tax code. Based on data from the Joint Committee on Taxation (JCT) and our own separate analysis, we conclude the following: # Even if employers do replace all of the dropped health insurance benefits with taxable wages, the result will be to make the overall federal tax system less progressive than it is now. # While the excise tax proposal would impose only modest burdens on the wealthy, it would noticeably lower living standards, not to mention health security, for tens of millions of Americans. # By 2019 about 58 million people would be adversely affected by the excise tax. That number would continue to rise rapidly in subsequent years. # As shares of income, the proposed tax increases would be times as high on middleincome families as on the very rich. There are other options to pay for health insurance reform that would actually be fair and progressive, such as the high-income surcharge on the richest 0.5 percent of taxpayers included in the House of Representatives health reform bill. A. Background Senate Democrats have proposed a new tax on a portion of employer-paid health insurance. Under the plan, health insurance premiums in excess of certain amounts would be subject to an extremely high excise tax. The rate is nominally 40 percent. But because the excise tax would not be deductible in computing insurers taxable income, the real excise tax rate would generally exceed 60 percent. Analysts at the Congressional Budget Office and the Joint Committee on Taxation are confident that the vast majority of employers, public or private, will be unwilling to pay such an onerous tax (which insurers would pass on to their customers). Instead, they predict that all but a handful of employers will instead reduce their employees health benefits to avoid the excise tax. What will employers do with the money that they used to spend on so-called excessive employee health benefits? Congressional analysts argue that all of it will be used to increase workers taxable wages. That theory is not universally accepted. 1 But even if it is true, it does not 1 Congressional analysts offer the plausible argument that employers have a fixed amount they are willing and able to pay their workers, whether in cash wages or benefits, and that if health benefits are reduced by a certain amount, then wages will inevitably go up by the same amount. But the real world may not work so neatly. For example, employers may be more willing to fund health insurance than to pay higher cash wages, since employers directly benefit from having healthier employees. Or take the case of public employees, where increases in cash wages are typically subject to more serious political constraints than generous health benefits.
2 2 mean that affected workers will be just as well off. The after-tax increase in their wages will be considerably less than the value of their lost, untaxed health insurance benefits. 2 The caps above which the proposed health insurance excise tax will apply are set at $23,000 for family plans and $8,500 for individual plans, starting in These might seem like very high amounts, but they will dwindle rapidly in real terms over time. That s because the caps will be indexed only for general inflation plus one percent, rather than for the much higher rate of expected health care inflation. As a result, according to the Joint Committee on Taxation, the number of families and individuals who will be affected by the new tax will grow rapidly. from 9.1 million couples, single parents and singles without children in 2013 to 24.6 million tax units by 2019, with continued rapid growth thereafter. According to our estimate, those 24.6 million tax units hit by the excise tax in 2019 will include about 58 million men, women and children. 3 B. Would the proposed health excise tax be progressive? Tax breaks are termed regressive and their elimination is called progressive if they provide a disproportionate benefit to high-income people compared to the less well-off. This can be true for several reasons. 1. Regressive subsidy rates: Tax deductions that reduce income subject to income tax are often called regressive because they are worth more per dollar deducted to people in high tax brackets than they are to people in lower tax breaks. An example of this would be the itemized deduction for mortgage interest payments, which saves top-bracket homeowners 35 cents for every dollar deducted, compared to only cents per dollar deducted for most homeowners. 2. Concentration of benefits: Tax breaks for kinds of income that are concentrated among the highest income people are also considered regressive. An example of this is the special low tax rates on capital gains and dividends. More than 70 percent of this tax break is enjoyed by the best-off one percent of all taxpayers. 3. Effects on overall tax progressivity: Another measure of regressivity asks whether a tax break reduces the overall progressivity of the tax system. For example, a tax break that cuts the effective tax rate on the wealthy by 10 percentage points, but only lowers effective rates on most people by a small percentage would be considered regressive. Tax breaks for capital gains would be regressive by this measure, while the regressivity of the deduction for mortgage interest would be less clear. After a detailed analysis, we conclude that converting a portion of health insurance benefits into taxable wages would not be significantly progressive by any of these measures, and would be regressive by most. On balance, it would make the overall tax system less progressive than it is today. 2 The analysis in the rest of this report follows the congressional analysts assumption that lost health benefits will translate into higher taxable wages, but that should be treated as the best-case scenario. The analysis also reflects the analysts conclusion that, contrary to claims by some commentators, the excise tax will not lead to reduced health care inflation over the next decade. 3 The 24.6 million tax units that the Joint Committee on Taxation (JCT) says would be affected by the excise tax include 12.6 million married couples, 3 million single parents, and 9.1 million childless single people. We took the average family sizes for each of these categories, by income group, and multiplied that by JCT s estimate of the number of tax units affected by income group for each category. (Married couples average about 3.3 people per tax unit, with slight variations by income level; single-parent families average about 2.5 people; and childless-single tax units average about 1 person.)
3 3 1. Regressive subsidy rates? Not Really. Converting a portion of tax-free health insurance to taxable wages (if in fact that is the result of the proposed excise tax), will mean not just higher income taxes but also higher payroll taxes on the affected employees. And when we look at the combined income taxes and payroll taxes that people will pay on their additional taxable wages, those rates are hardly, if at all, progressive. Simply put, for workers in the 15 percent income tax bracket, the payroll tax adds another 15 percent, for a total federal tax rate on additional taxable earnings of 30 percent. 4 Better-off workers in the 25 percent income tax bracket have a combined marginal tax rate on additional taxable earnings of 40 percent. But at the highest income levels, where earnings are above the Social Security wage cap, the payroll tax is only the 2.9 percent Medicare tax. So even for the highest earners, currently in the 35 percent income tax bracket, the total federal marginal rate on additional taxable earnings is 37.9 percent. Thus, even these simplified examples show that there is only a small (and wobbly) amount of progressivity in federal marginal tax rates on earnings. The tax code, however, is not quite that simple. A look at a few real-world examples calls into question even the just-described shaky bit of progressivity. For example: # Take a single parent with two children and $35,000 in wages. If, say, $4,000 of this family s health insurance benefits are converted into taxable wages, the family will pay an additional $2,046 in federal taxes, including $557 in additional income tax before credits, $569 in increased payroll taxes, $138 in reduced child care credit, and $783 in reduced earned-income tax credit. That s a tax rate of 51 percent on the additional cash wages. 5 # Now look at a married couple with two children with joint wages of $110,000. If $4,000 of their health insurance becomes taxable wages, they ll pay an additional $1,673 in federal taxes. That s a tax rate of 42 percent on the additional cash wages. # For a couple making $250,000, the tax rate on $4,000 in additional taxable wages falls to 31 percent. # And for the very rich, the actual federal tax rate would be about 36 percent. Bumpy, to be sure, but more regressive than progressive. Example: Single parent with 2 children and $35,000 in taxable wages Federal taxes now Adjusted Gross Income $ 35,000 Deductions 8,350 Exemptions 10,950 Taxable income 15,700 Income tax before credits 1,758 Per child credit 2,000 Child care credit 1,476 Earned-income tax credit 1,115 Income tax after credits 2,834 Social security tax (worker & employer) 4,340 Medicare tax (worker & employer) 1,015 Income & payroll taxes $ 2,521 Reduce health insurance benefits by $4,000 and add $3,716 to taxable wages* Revised federal taxes changes Adjusted Gross Income $ 38,716 $ +3,716 Deductions 8,350 Exemptions 10,950 Taxable income 19,416 +3,716 Income tax before credits 2, Per child credit 2,000 Child care credit 1, Earned-income tax credit Income tax after credits 1,356 +1,478 Social security tax (worker & employer) 4, Medicare tax (worker & employer) 1, Income & payroll taxes $ 4,568 $ +2,046 Tax rate (on $4,000 in lost health benefits) 51% *The $284 employer payroll tax on the $4,000 in reduced health benefits and increased taxable wages will be subtracted before taxable wages are paid. 4 The payroll tax includes the Social Security tax, which applies to earnings up to a cap (currently $106,800) and the Medicare tax (which applies to all earned income). The Social Security tax rate is 12.4% and the Medicare tax rate is 2.9%, for a total of 15.3% for the vast majority of workers whose wages are below the Social Security wage cap. Nominally, the payroll tax is split evenly between employers and workers (7.65% each, for workers below the wage cap). But analysts universally conclude that workers ultimately bear the full amount of the tax, even though the payments to the government (for both worker and employer taxes) are made by employers. (Self-employed people, who have no employer, pay the full 15.3% tax themselves.) 5 It may surprise many people, but this is the federal income and payroll tax rate such a family would pay on any $4,000 increase in taxable wages.
4 4 To get beyond anecdotal examples, we ran the effects of converting a portion of tax-exempt health insurance benefits into taxable wages through the Institute on Taxation & Economic Policy s computer model, which takes account of all the various elements of the income tax, such as phase-ins, phase-outs, alternative minimum tax effects, and so forth. 6 Here are the findings (using 2009 income tax rates): (a) For wage-earning single parents, the tax rate on the increased taxable wages would be essentially flat across all income groups from $20,000 to over a million dollars. Single parents making $30-40,000 would pay the same 36 percent rate as those making more than $1 million. Average Marginal Federal Income & Payroll Tax Rates on Converting a Portion of Tax-exempt Wages (e.g., health insurance) into Taxable Wages For Wage-Earning Single Parents, by Income Group 30% 25% 20% 15% 33% 30% 30% 34% 10% 5% $20-30K $30-40K $40-50K $50-75K $75-100K $ K $ K $500K-1mill $1 million+ (b) For wage-earning married couples with children, the tax rates on the increased taxable wages would be only slightly progressive, averaging about 28 percent in the $20-100,000 income ranges, and about 35 percent above that. Average Marginal Federal Income & Payroll Tax Rates on Converting a Portion of Tax-exempt Wages (e.g., health insurance) into Taxable Wages For Wage-Earning Married Couples with Children, by Income Group 30% 25% 20% 15% 28% 32% 27% 27% 28% 34% 37% 10% 5% $20-30K $30-40K $40-50K $50-75K $75-100K $ K $ K $500K-1mill $1 million+ 6 Technically, we added $2,000 to the taxable wages of all wage-earning tax units, and asked the model to calculate how much additional federal income and payroll taxes would be owed on that $2,000 (and from that we calculated the marginal tax rate). For married couples, we assigned the additional wages to the spouse with the higher wages, because that spouse is more likely to have the more expensive (or sole) health insurance policy.
5 5 (c) For single wage earners without children, the marginal tax rates would be an essentially flat rate of about 35 percent for all groups from $40,000 up. And even for those making less than $40,000, the marginal rate percentages would be in the mid to high twenties. Average Marginal Federal Income & Payroll Tax Rates on Converting a Portion of Tax-exempt Wages (e.g., health insurance) into Taxable Wages For Single Wage Earners without Children, by Income Group 30% 25% 20% 15% 24% 27% 28% 32% 37% 34% 10% 5% $10-20K $20-30K $30-40K $40-50K $50-75K $75-100K $ K $ K $500K-1mill $1 million+ Of course, one could find a modest amount of progressivity in at least one of the tax-rate graphs shown here. But it s very modest at most. And even that will be reduced once state income taxes, which will almost certainly apply, are counted, too Will the new taxes from limiting the tax break for health insurance be primarily paid by the rich? No. Who will pay more taxes in 2019 under the Senate Democrats health insurance excise tax? A new tax that by 2019 will hit 25 million families and individuals (representing 58 million people) cannot by definition be concentrated solely or even primarily on the wealthy. To be sure, the new excise tax will affect a higher percentage of better-off people than others. But data from the Joint Committee on Taxation indicate that: # Only about 3.4 percent of the total new taxes produced by the excise tax will be paid by the top 0.8 percent of all taxpayers. # In contrast, 36 percent of the new taxes would be paid by the 27 percent of individuals and families making between $50,000 and $100,000. % of all tax units % affected by excise tax % of total number affected % of total tax paid <$20K 27.7% 2% 3.5% 0.5% $20-50K 26.9% 12% 23.0% 12.3% $50-75K 15.9% 19% 22.0% 19.9% $75-100K 10.9% 20% 15.9% 16.1% $ K 14.4% 26% 26.4% 35.5% $ K 3.4% 31% 7.5% 12.2% $500K-$1m 0.5% 31% 1.1% 2.1% $1million+ 0.3% 31% 0.6% 1.3% All 100.0% 14% 100.0% 100.0% Addendum: <$100K 81.5% 11% 64.3% 48.8% Source: Joint Committee on Taxation, Nov. 19, 2009, with CTJ calculations. 7 Because state income tax rates generally are not very progressive, if at all, to start with, and because state income taxes are deductible by itemizers in computing federal taxable income, effective marginal state income tax rates generally decline at high income levels.
6 3. Favorable effects on overall tax progressivity? Quite the contrary. Rather obviously, the value of employer-paid health insurance, as a share of income, is much higher for middle-income people with coverage than it is for the wealthy. That reflects the fact that one can only spend so much on health insurance, no matter how rich one may be. As a result, taxing a portion of previously tax-free health insurance will take a much larger share of income from average families than from the wealthy. Figures from the congressional Joint Committee on Taxation show that the Senate Democrats proposal to tax health insurance would take 10 to 20 times as high a share of income from middle-income workers as it would take from the rich. And by doing so, it will reduce the overall progressivity of the tax system. 0.30% 0.20% 0.10% 6 Senate Democrats Health Insurance Excise Tax as Shares of Income in 2019 (for taxpayers affected and unaffected) 0.9% 4. The bottom line on fairness 0.8% If a portion of tax-free health benefits 0.7% 1.4% 1.3% are converted into taxable wages, the 0.6% 1.1% combined federal and state tax rate on 0.5% 1.0% 1.0% the additional cash wages will 0.4% typically be about 35 percent. 0.3% 0.6% 0.2% Figures from the Joint Committee on 0.3% 0.1% Taxation indicate that in 2019 the typical increase in taxable income for Source: Citizens for Tax Justice, Dec. 11, 2009, based on Joint Committee on Taxation data (Nov. 19, 2009). those affected by the proposed excise tax will be about $3,700. That means 24.6 million families and individuals (representing about 58 million people) will lose an average of about $4,000 in health benefits and, in theory, get about $2,600 in after-tax wages in exchange. 8 Such a trade-off will not noticeably bother the rich, of course. But it will be a significant reduction in living standards, not to mention health security, for tens of millions of ordinary Americans. 0.03% 0.18% 0.28% 0.23% <$20K $20-50K $50-75K $75-100K $ K $ K $500K-$1m $1million+ Source: Citizens for Tax Justice, Dec. 11, 2009, based on Joint Committee on Taxation data (Nov. 19, 2009). 1.4% 1.3% 1.2% 1.1% 1.0% 0.25% 0.18% 0.09% Senate Democrats Health Insurance Excise Tax as Shares of Income in 2019 (for taxpayers affected only) <$20K $20-50K $50-75K $75-100K $ K $ K $500K-$1m $1million+ 0.02% 0.1% 8 The arithmetic works this way: Take a worker who is currently getting $4,000 in what Senate Democrats deem to be excessive health insurance benefits. If the employer converts that into taxable wages, then the cash wages after the employer side of the payroll tax is subtracted will be about $3,700 ($4, % x 3,700). Then the worker will pay additional payroll and income taxes of about $1,100, and net about $2,600 after-tax.
7 C. There are progressive options to pay for health insurance reform Taxing a portion of employer-paid health insurance, in a way that will lead to reduced health coverage for tens of millions of Americans, is not the only proposed way to pay for health insurance reform. 7 # The House of Representatives has passed a health insurance reform bill that is primarily financed by a surcharge on couples making more than $1,000,000 and singles making more than $500,000. Only the best-off 0.5 percent of all taxpayers would be subject to the House s proposed tax, yet it would raise $460 billion over 10 years, more than three times as much as the $149 billion the Senate Democrats proposed excise tax would raise. # Alternatively, extending half of the 2.9 percent Medicare tax to investment income (which is currently exempt from the Medicare tax), while limiting this change to couples making more than $250,000 a year ($200,000 for singles), would affect only 2 percent of all taxpayers. Yet according to the Joint Committee on Taxation, it would raise $111 billion over 10 years, enough to replace three-quarters of the revenues from the Senate Democrats proposed excise tax on health insurance benefits. Senate Democrats may have reasons why they prefer a new tax primarily on middle-income Americans to these progressive tax options. But enhancing tax progressivity cannot be one of them.
The Consequences of Increasing Oregon s Income Tax Deduction for Federal Income Taxes Paid Prepared By: The Institute on Taxation and Economic Policy Washington, DC 20005 www.ctj.org/itep For: Oregon Center
CTJ Citizens for Tax Justice May 21, 2009 Contact: Bob McIntyre (202) 299-1066 x22 Progressive Revenue Options to Fund Health Care Reform Politicians and pundits have lately written or spoken of the difficult
Tax Subsidies for Health Insurance An Issue Brief Prepared by the Kaiser Family Foundation July 2008 Tax Subsidies for Health Insurance Most workers pay both federal and state taxes for wages paid to them
How Much Do Americans Pay in Federal Taxes? April 15, 2014 One of the most hotly debated issues of our time is the fairness of our federal tax system. But too often, discussions are clouded and confused
Health Care Reform Will Benefit Small Businesses in Massachusetts 1 P a g e WHY SMALL BUSINESSES NEED HELP LESS THAN HALF INSURE WORKERS: Only 45% of America s smallest firms currently can afford to offer
OPTIONS TO REFORM THE DEDUCTION FOR HOME MORTGAGE INTEREST Chenxi Lu, Joseph Rosenberg, and Eric Toder December 8, 2015 ABSTRACT Taxpayers can currently deduct interest on up to $1 million in acquisition
Oregon Center for Public Policy 204 North First Street, Suite C P.O. Box 7, Silverton, OR 97381-0007 Telephone: 503.873.1201 Facsimile: 503.873.1947 e-mail: email@example.com www.ocpp.org An Analysis of SB
Staying Healthy, Wealthy & Wise: The Aftermath of the Fiscal Cliff Heather Kovalsky, CPA 2013 Tax Changes The Patient Protection and Affordable Care Act American Tax Relief Act of 2012 The Patient Protection
Private Health Insurance: Changes Made by the Reconciliation Act of 2010 to Senate-Passed H.R. 3590 Hinda Chaikind Specialist in Health Care Financing Bernadette Fernandez Analyst in Health Care Financing
Jane G. Gravelle Senior Specialist in Economic Policy July 5, 2013 CRS Report for Congress Prepared for Members and Committees of Congress Congressional Research Service 7-5700 www.crs.gov R40775 c11173008
NEW MEDICARE TAX ON UNEARNED NET INVESTMENT INCOME Q-1: Who will be subject to the new taxes imposed in the health legislation? A: A new 3.8% tax will apply to the unearned income of High Income taxpayers.
GAO United States General Accounting Office Testimony Before the Committee on Finance, United States Senate For Release on Delivery Expected at 10:00 a.m. EST on Thursday March 8, 2001 ALTERNATIVE MINIMUM
IMPACT OF HEALTH CARE REFORM ON INDIVIDUAL AND SMALL BUSINESS TAXES ATLANTA ASHEVILLE BIRMINGHAM CHICAGO DALLAS DENVER JACKSONVILLE LOS ANGELES MELBOURNE MEMPHIS MIAMI MINNEAPOLIS NEW YORK ORLANDO PHOENIX
FISCAL FACT Jan. 2016 No. 498 Details and Analysis of Senator Bernie Sanders s Tax Plan By Alan Cole and Scott Greenberg Economist Analyst Key Findings: Senator Sanders (I-VT) would enact a number of policies
Citizens for Tax Justice! 202-299-1066! www.ctj.org November 30, 2006 (6 pp.) An Analysis of Eliminating the Cap on Earnings Subject to the Social Security Tax & Related Issues Recently, there has been
Health Care Implementation Timeline The massive healthcare (H.R. 3590) and its companion reconciliation bill (H.R. 4872) passed by the Senate and House in early 2010 will go into effect over several years.
AN OVERVIEW OF STATE INCOME TAXES ARKANSAS AND SURROUNDING STATES A current topic of conversation among many who are concerned about economic development in Arkansas is how the State s taxation laws, particularly
Chapter 9 Practice Test Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The authority to levy a federal tax comes from a. the Fifth Amendment. c. an act
Executive Summary 204 N. First St., Suite C PO Box 7 Silverton, OR 97381 www.ocpp.org 503-873-1201 fax 503-873-1947 October 16, 2000 How Would Expanding Oregon s Deduction for Federal Income Taxes Paid
820 First Street, NE, Suite 510, Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 firstname.lastname@example.org http://www.cbpp.org April 10, 2002 OVERALL FEDERAL TAX BURDEN ON MOST FAMILIES INCLUDING MIDDLE-
CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE Percent 70 The Distribution of Household Income and Federal Taxes, 2008 and 2009 60 50 Before-Tax Income Federal Taxes Top 1 Percent 40 30 20 81st
What You Need to Know About Roth IRA Conversions in 2010 Your Guide to THE 2010 IRA Tax Law Changes From the editors at SmartMoney Custom Solutions Dear Reader, The year 2010 offers you an unprecedented
Notes - Gruber, Public Finance Chapter 20.3 A calculation that finds the optimal income tax in a simple model: Gruber and Saez (2002). Description of the model. This is a special case of a Mirrlees model.
Tax Reform & Tax Relief Package The New Credit System Summary The new tax reform plan (LD 1495) uses new household credits in place of personal exemptions and standard and itemized deductions. These credits
DEPARTMENT OF THE TREASURY WASHINGTON, D.C. 20220 April 8,2005 MEMORANDUM FOR FROM SUBJECT JEFFREY KUPFER, EXECUTIVE DIRECTOR PRESIDENT S ADVISORY PANEL ON FEDERAL TAX REFORM ROBERT CAmoLi& DEPUTY ASSISTANT
Governor Walker's Tax Reform Initiative Wisconsin Department of Revenue February 2013 1 Tax Reform Goals Reduce Wisconsin's high tax burden Put more money in people's pockets Make Wisconsin more competitive
Reducing the Deficit by Increasing Individual Income Tax Rates Eric Toder, Jim Nunns, and Joseph Rosenberg March 2012 The authors are all affiliated with the Urban-Brookings Tax Policy Center. Toder is
SUP E R ANNUATION Contributing to your super GESB Super and West State Super ISSUE DATE: 1 July 2015 PREPARATION DATE: 26 June 2015 Government Employees Superannuation Board ABN 43 418 292 917 Contents
Percent Tax Expenditures and Social Policy: A Primer Daniel Mandel What Are Tax Expenditures? Congress uses the tax code to promote a broad range of policy objectives. Rather than directly spend government
Preparing for a World of Higher Taxes Are You Ready? Presented by: Matt Sommer, CFP, CPWA, AIF Director and Senior Retirement Specialist, Retirement Strategy Group C-0610-114 4-30-11 Federal Tax and Capital
CHAPTER FOUR THE EW YORK PERSOAL ICOME TAX T he personal income tax is the only major progressive tax levied by state and local governments. The ew York income tax helps to offset the regressivity of the
Upcoming Changes in the Federal Tax Law A Special Edition Tax Guide for Friends and Alumni of Pomona College Pomona College, Office of Trusts & Estates, 550 N. College Ave., Claremont, CA 91711 www.pomona.planyourlegacy.org
FISCAL FACT Sept. 2015 No. 479 Details and Analysis of Governor Jeb Bush s Tax Plan By Kyle Pomerleau Economist Key Findings Governor Jeb Bush s tax plan would reform both the individual income tax and
Executive Summary 204 N. First St., Suite C PO Box 7 Silverton, OR 97381 www.ocpp.org 503-873-1201 fax 503-873-1947 On Whose Backs? Tax Distribution, Income Inequality, and Plans for Raising Revenue By
Social Security and Your Retirement Important information for investors planning Social Security will not and was never designed to provide all of the income you ll need to live comfortably during retirement.
2010 FOCUS ON BUSINESS December 1, 2010 FEDERAL TAX UPDATE 2010 SMALL BUSINESS JOBS ACT & MISCELLANEOUS TAX PROVISIONS PRESENTED BY: DAVID P. VENISKEY, CPA TAX PARTNER EFP ROTENBERG, LLP TAX RATES Income
ECONOMIC ANALYSIS Budget Magic and the Social Security Tax Cap By Martin A. Sullivan email@example.com Raising the annually adjusted cap on wages subject to the Social Security tax in 2005 from
Family Matters: Pennsylvania s 100% Marginal Income Tax Rate Gary L. Welton Ph.D. According to the National Taxpayers Union, the U.S. Tax Code includes 3,951,104 words. It is more than twice the length
Presented By: Tracy Monroe, CPA, MT Tax extenders for individuals Tax planning Ohio update On December 18, 2015 the President signed the Protecting Americans from Tax Hikes (PATH Act): Extended many expired
Healthcare Provisions 2013/2014 What Small Businesses Need to Know Healthcare Provisions 2013/2014 PPACA The healthcare reforms in the Patient Protection and Affordable Care Act (PPACA), commonly referred
BRIEFING PAPER INCOME TAX REFORM What Does It Mean for Taxpayers? Office of Legislative Research and General Counsel DECEMBER 2006 UTAH LEGISLATURE HIGHLIGHTS SB 4001, passed in the 2006 4th Special Session,
Overview of Tax Aspects of Select Health Care Reform Proposals 1 2 BASED ON 3 IN GENERAL The President s proposal would eliminate the current exclusion for employer-subsidized accident and health In lieu
FRUSH & ASSOCIATES, INC. OVERVIEW Recap of 2013 ACA Act NII Surtax Medicare Wage Surtax Tax Items For Businesses Ohio Tax Law Changes Circular 230 Disclosure Pursuant to the rules of professional conduct
Smart Tax, Business & Planning Ideas from your Trusted Business Advisor sm The Coming Cost of Health Insurance Two new laws the Patient Protection and Affordable Care Act of 2010 and the Health Care and
FISCAL FACT Jan. 2016 No. 493 Details and Analysis of Dr. Ben Carson s Tax Plan By Kyle Pomerleau Director of Federal Projects Key Findings Dr. Ben Carson s tax plan would replace the federal income tax
Converting to a Roth IRA: Beyond the Basics April 1, 2010, Orinda Special Interest Group, AAII June 26, 2010, Silicon Valley Chapter, AAII Peter James Lingane Financial Security by Design Lafayette, CA
Life Insurance as an Employee Benefit What is it? Life insurance is a contract whereby the insurance company pays a sum specified within the contract to a named beneficiary upon the death of the insured,
2015 Individual Tax Planning Letter Just as the daylight hours are getting shorter, so is the time for fine tuning any last-minute strategies to lower your 2015 tax bill. While year-end legislation extending
The Tax Benefits and Revenue Costs of Tax Deferral Copyright 2012 by the Investment Company Institute. All rights reserved. Suggested citation: Brady, Peter. 2012. The Tax Benefits and Revenue Costs of
Issue Brief UPDATED APRIL 2015 BY WILLIAM CHEN Who Pays Taxes in California? The primary purpose of a tax system is to support public goods and services. State and local taxes are the way that Californians
American Taxpayer Relief Act of 2012- UPDATED On January 2, 2013, the President signed the American Taxpayer Relief Act, thus ending the nation s brief stint over the fiscal cliff a confluence of expiring
The Income Tax Effects of Health Care Reform on Small Businesses and Real Estate Investors BY J. RUSSELL HARDIN, PH.D. INTRODUCTION IF REAL ESTATE INVESTORS AND SMALL BUSINESS OWNERS intend to maximize
October 8, 2012 The U.S. retirement savings system encourages individuals to save for retirement by providing income tax exclusions or deductions for contributions to employer-sponsored defined contribution
820 First Street NE, Suite 510 Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 firstname.lastname@example.org www.cbpp.org Revised February 2, 2009 BIG MISCONCEPTIONS ABOUT SMALL BUSINESS AND TAXES By Chye-Ching
Tax Subsidies for Private Health Insurance Matthew Rae, Gary Claxton, Nirmita Panchal, Larry Levitt The federal and state tax systems provide significant financial benefits for people with private health
cepr CENTER FOR ECONOMIC AND POLICY RESEARCH briefing paper Defaulting on The Social Security Trust Fund Bonds: Winner and Losers Dean Baker 1 July 23, 2001 SUMMARY The United States government has never
Dear Clients and Friends, As the end of 2011 approaches, now is a good time to start year-end tax planning to minimize your individual and business tax burden. Generally, year-end tax planning involves
820 First Street, NE, Suite 510, Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 email@example.com www.cbpp.org Revised February 9, 2004 PRESIDENT PROPOSES TO MAKE TAX BENEFITS OF HEALTH SAVINGS
KEY FACTORS WHEN CONSIDERING A ROTH IRA CONVERSION PERTINENT INFORMATION Mr. Kugler has accumulated $1,000,000 in a traditional IRA. Mrs. Kugler is the designated beneficiary (DB) and their daughter is
Income, Gift, and Estate Tax Update Individual Income Tax Rates p. 1 Phil Harris Department of Agricultural and Applied Economics University of Wisconsin-Madison Marriage Penalty Relief p. 1 Capital Gains
UNDERSTANDING THE TAX SWAP budget brief AUGUST JUNE 2010 2005 On Tuesday, August 3, legislative leaders proposed a new budget plan, including a tax swap that would increase some of the state s personal
Chapter Five The Panel s Recommendations Courtesy of Marina Sagona The Executive Order creating the Panel called for reform options that would deliver a simpler, fairer, and more pro-growth tax system.
TAX PROVISIONS IN THE AMERICAN TAXPAYER RELIEF ACT OF 2012 (ATRA) James Nunns and Jeffrey Rohaly Urban-Brookings Tax Policy Center January 9, 2013 ABSTRACT The fiscal cliff debate culminated in the passage
820 First Street NE, Suite 510 Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 firstname.lastname@example.org www.cbpp.org February 28, 2009 VERY FEW SMALL BUSINESS OWNERS WOULD FACE TAX INCREASES UNDER PRESIDENT
CRS Report for Congress Received through the CRS Web Order Code 96-20 EPW Updated January 10, 2001 Summary Individual Retirement Accounts (IRAs): Legislative Issues in the 106 th Congress James R. Storey
Social Security Benefits and the 55.5% Tax Bracket by Larry Layton CPA Every year there is a lot of press regarding the need for Congress to step in and provide an income adjustment for the Alternative
THE IRA PROPOSAL CONTAINED IN S. 1682: EFFECTS ON LONG-TERM REVENUES AND ON INCENTIVES FOR SAVING Staff Memorandum November 2, 1989 The Congress of the United States Congressional Budget Office This mcmorandura
Year-by-Year Guide Tax Implications of the Affordable Care Act 1 Year-by-Year Guide: Tax Implications of the Affordable Care Act Introduction The Patient Protection and Affordable Care Act, commonly referred
Making the Most of Your Super For many people, super is one of the best ways to accumulate wealth. The Government provides tax benefits to encourage people to fund their own retirement. With more Australians
INFORMATION BRIEF Research Department Minnesota House of Representatives 600 State Office Building St. Paul, MN 55155 Nina Manzi, Legislative Analyst, 651-296-5204 Joel Michael, Legislative Analyst, 651-296-5057
TAX LEGISLATION January 2013 EXECUTIVE SUMMARY American Taxpayer Relief Act of 2012 Late in the night, on January 1, 2013, Congress completed work on the tax piece of the so-called fiscal cliff negotiations.
Medicare taxes for higher-income taxpayers Many changes from the 2010 Affordable Care Act are now in effect Begin planning now You ll especially want to discuss these tax provisions with your Financial
16. Individual Retirement Accounts Introduction Through enactment of the Employee Retirement Income Security Act of 1974 (ERISA), Congress established individual retirement accounts (IRAs) to provide workers
THE AUSTRALIA INSTITUTE Health insurance tax rort November 2002 This report concludes that private health insurance funds are facilitating and, in some cases, encouraging tax avoidance by providing products
MEASURING INCOME FOR DISTRIBUTIONAL ANALYSIS Joseph Rosenberg Urban-Brookings Tax Policy Center July 25, 2013 ABSTRACT This document describes the income measure the Tax Policy Center (TPC) uses to analyze
820 First Street NE, Suite 510 Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 email@example.com www.cbpp.org August 7, 2009 AN EXCISE TAX ON INSURERS OFFERING HIGH-COST PLANS CAN HELP PAY FOR HEALTH
The Impact of Proposed Federal Tax Reform on Farm Businesses James M. Williamson and Ron Durst United States Department of Agriculture Economic Research Service Washington, DC Poster prepared for presentation
Private Wealth Management Products & Services March 2010 The Patient Protection and Affordable Care Act Health care act includes variety of tax changes President Obama signed the Patient Protection and
Simple Tax is Better Tax Submission to Re:think Better tax system, better Australia By Lorraine May 2015 Executive Summary The current tax system is needlessly complex. To some degree tax needs to be complex
4D Income Taxes there are 5 different categories Single You must be unmarried at the end of the year. Married filing jointly this is how most married people will file. Married filing separately occasionally,
WHAT HEALTH CARE REFORM MEANS FOR YOUR BUSINESS Your promotional imprint here and/or back cover. ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567 The Patient Protection
INTERACTION OF AUTOMATIC IRAS AND THE RETIREMENT SAVINGS CONTRIBUTIONS CREDIT (SAVER S CREDIT) A Report Prepared for AARP By: Optimal Benefit Strategies, LLC Judy Xanthopoulos, PhD Mary M. Schmitt, Esq.
Lesson Description The lead article in the spring 2010 issue of Inside the Vault discusses the redistribution of wealth through taxation. In this lesson, students use different household scenarios to examine
ISSUE BRIEF Proposed Repeal of Income Tax Reciprocity Agreement with Wisconsin (January 2002) The Governor s Supplemental Budget Recommendations for FY 2002-2003 propose to repeal the income tax reciprocity
August 14, 2013 Presented by: Jay Hutto, CPA Prescribed Side Effects of the Patient Protection and Affordable Care Act (PPACA): Healthcare Reform Update Click HERE to listen to webinar. August 14, 2013
HEALTH CARE REFORM FOR BUSINESSES Grandfathered Health Plans. We will start with information on health plans that were in existence on March 23, 2010 (i.e., the enactment date of the Affordable Care Act).
business owner issues and depreciation deductions Individuals who are owners of a business, whether as sole proprietors or through a partnership, limited liability company or S corporation, have specific