It’s amazing what happens when the White House actually produces a bill, you know, with the proposal in legislative language.
It’s a half a trillion dollar stimulus bill, which raises taxes on Health Savings Accounts (HSAs).
Here is an analysis of the bill on RedState.
If you make north of a household income of “x” there is a new type of tax increase for you and yours.
Any tax deduction you take, for your home mortgage, for your health insurance, or for your Health Savings Account, are all subject to being limited.
It’s a universal tax break limitation on all tax breaks for those “the One” defines as wealthy.
It’s a tax. A tax to pay for a “jobs” bill that won’t produce jobs, just like the trillion dollars “the One” spent with no increase in jobs.
For the few Americans actually buying homes, taxing their ability to do so will further tank the housing market, which will have a greater negative impact on jobs than anything in the fundamentally flawed bill — which presupposes Washington can interfere in the market some more, and create jobs.
Furthermore, the trend we have been seeing, that ObamaCare will increase the cost of health insurance and health care is built upon again. What else can increase health care costs more than taxing the lowest cost health care option on the market, a Health Savings Account?
It is more of the same by “the One,” and his attempts to injure, hobble and maim HSAs.
You will find the tax in Title IV, Section 4:
Subtitle A – 28 Percent Limitation on Certain Deductions and Exclusions
Section 401 – 28 Percent Limitation on Certain Deductions And Exclusions. This section would limit the value of all itemized deductions and certain other tax expenditures for high-income taxpayers by limiting the tax value of otherwise allowable deductions and exclusions to 28 percent. No taxpayer with adjusted gross income under $250,000 for married couples filing jointly (or $200,000 for single taxpayers) would be subject to this limitation. The limitation would affect itemized deductions and certain other tax expenditures that would otherwise reduce taxable income in the 36 or 39.6 percent tax brackets. A similar limitation also would apply under the alternative minimum tax. This section would be effective for taxable years beginning on or after January 1, 2013.
For those who have an HSA and don’t want it taxed, call or write your Senator and your Congressman and let them know — this provision is unacceptable!
Cross posted at the HSA Coalition.