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What the Health Bill Does on Taxes

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The new House health-care legislation is set to offer two new tax aspects that have caused concern for those affected. The first new penalty imposes fines on companies that do not offer its employees health care benefits. The bill has minimum standards that, if not met by companies, will be penalized up to 8% of their total payroll. Companies like Wal-Mart will be hit hardest because of their tendency to employ high numbers of low wage, part time workers. This will actually help smaller businesses that do insure their workers.

The next change will impose higher tax rates on wealthy households. This extra money is set aside to help pay for the uninsured. Under the new legislation, those making in excess of $500,000 and couples making in excess of $1 million face a tax increase of 5.4%, making their marginal tax rate 45%. This only affects 0.3% of taxpayers and 1.2 % of small business. More changes appear to be on the horizon. For instance, inflation rates are not taken into account under this legislation. Over time, more than the 0.3% of taxpayers & 1.2% of small businesses will be included.

These changes are directly in support of the greatest good for the greatest population. Since the introduction of the health care overhaul the major gripe has been the unfair nature it presents to those being penalized for having a high income. I am all for helping out those in need and support the idea behind what the legislation is trying to promote. As a college student in my current situation, my vote would be in favor of health care reform. However, if I was the owner of a relatively large company with an income of over $1 million, my views may change a little. Just like any bill, rule, or law there will be positives and negatives for people on all sides.

TS

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