Tag: ‘employer-sponsored health insurance’

Little Difference Between the Cadillac Tax and a Cap on the Tax Exclusion for Employer Health Plans

By :: October 22nd, 2015

In the face of widespread criticism of the Affordable Care Act’s excise tax on high-cost employer sponsored health insurance plans (the Cadillac Tax), some lawmakers have backed an alternative: a cap on the current tax exclusion for employer contributions to health insurance. To learn how the two ideas would differ, my colleagues at the Tax […]

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Who Benefits Most From Repealing the ACA Cadillac Tax?

By :: July 23rd, 2015

Republicans and some Democrats in Congress are pressing to repeal the Affordable Care Act’s Cadillac tax—a 40 percent excise tax on high-cost employer-sponsored health insurance plans. Backers of repeal argue that curbs on these generous plans would disproportionately hurt low- and middle-income workers. But a new Tax Policy Center analysis shows that story is overstated. In […]

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Taxing Employer-Sponsored Insurance Would Hike Social Security Benefits But Boost Federal Coffers

By :: May 8th, 2014

The tax subsidy for employer-sponsored health insurance is huge. Not only are the premiums exempt from income tax, they are also immune from Social Security payroll tax. The two subsidies combined will add more than $1.6 trillion to the deficit over the next five years alone. But because that income is not included in the […]

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A New Look at Who Benefits from Tax Expenditures

By :: December 19th, 2013

Who benefits from the tax credits, deductions and exclusions that have become such an integral part of the modern tax code? Nearly all of us. And that’s why any tax reform that eliminates or scales back many of these preferences in return for lower tax rates is so hard to do. The Tax Policy Center […]

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Congress Shouldn’t Forget About Tax Entitlements In Its Search for Deficit Reduction

By :: October 22nd, 2013

Yesterday, Washington Post columnist Bob Samuelson urged lawmakers to “just eliminate…the whole notion of entitlements.”  His provocative argument: The very word “entitlement” makes people believe these programs are somehow untouchable. They are, for instance, effectively exempt from the sequester’s cuts even though they represent two-thirds of all government spending. Bob is on to something but he […]

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What if the Outrage over Excessive Welfare Extended to the Tax Code?

By :: February 26th, 2013

Senator Jeff Sessions (R-AL) has created quite a stir with his estimates that every household below the poverty level receives an average of $168-a-day (or about $61,000-a-year) in government welfare. Sessions’ calculations are extremely controversial and overstate the amount of government assistance for those in poverty. But for the sake of argument, let’s assume he’s right. […]

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Taxes, Health Reform, and the Supreme Court

By :: March 29th, 2012

There is more to the Affordable Care Act than the individual mandate. There are also, for example, taxes. And since this is TaxVox, I thought it would be useful to think about some of those revenue provisions in the wake of the Supreme Court’s three-day hearing on the fate of the ACA. The law includes […]

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Obama’s Cap on Tax Deductions: Not What It Seems

By :: September 13th, 2011

It turns out that President Obama’s plan to limit the benefit of itemized deductions is much more than that. Not only would it reduce tax savings for mortgages, charitable gifts, high medical costs, and the like, it would also curb tax breaks for owners of municipal bonds, workers who buy health insurance, and those who earn […]

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