Wednesday, October 12, 2005

So... now I'm paying taxes on money I didn't even earn!?

Okay, Pres. Bush... I don't see how paying taxes on money I don't actually earn makes the current tax system "simpler, fairer and more geared to promoting economic growth".

Can someone see any way in which this would benefit you personally? Let me see if I understand this correctly, in an effor to make taxes fairer and increase economic growth, I will pay additional taxes and thereby have less money in pocket. And that adds to economic growth how? If I remember correctly, lower discretionary income = bad consequences regarding economic growth.

Money in my pocket =
Income - (income_tax + (employer-paid_benefits * benefit_tax_rate)) = pretty crappy

Tax-free health benefit may change - CNN
A bipartisan tax reform panel, appointed by President Bush to suggest ways to make the tax code simpler, fairer and more geared to promoting economic growth, said at a public meeting on Tuesday that it may recommend curbing the amount of tax-free health insurance contributions your employer makes on your behalf.

Anything paid above the threshold would be treated as taxable income to you.


At 4:51 PM, Blogger Nathan said...

Essentially putting a cap on the "benefits" that can be offered by an employer... if you're taxed on it, then there is no benefit.

Pretty crappy indeed!


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