Health Reform and Taxes Rumor

Health Reform and Taxes Rumor

As the Administration works to implement the Affordable Care Act, it is critically important to ensure that consumers across the country have accurate information about their new rights and benefits under the new health insurance law. Throughout the Congressional debate on health reform, Americans were bombarded by the opponents of reform with rumors, misinformation and false claims. Unfortunately, those efforts persist.

For example, there is now an email circulating with false information about the W2 form. The email states that because consumers will now see the value of their employer provided health care on their W2 form, their taxes will go up. Here’s what part of it claims:

“Starting in 2011 (next year folks) your W 2 tax form sent by your employer will be increased to show the value of what ever health insurance you are given by the company. It does not matter if that's a private concern or governmental body of some sort. If you're retired? So what; your gross will go up by the amount of insurance you get. You will be required to pay taxes on a large sum of money that you have never seen. Take your tax form you just finished and see what $15,000 or $20,000 additional gross does to your tax debt. That's what you'll pay next year. For many it also puts you into a new higher bracket so it's even worse. This is how the government is going to buy insurance for the 15% that don't have insurance and it's only part of the tax increases.”

Don’t believe it. This claim is simply false.

Here are the facts: Next year, your W2 form will only change to show the value of the health care benefits that you have received so you can know more about your benefits and you are an empowered consumer, but you will absolutely not pay taxes on these benefits.

Would Conservatives who bask in the glow of holier than thou values circulate false e-mails about Democrats. It appears they would. Republican are the party of fear and smears. It works for them so we can all expect more of the same. With Republicans its alway party first and America last on their agenda.

Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output

Looking at recorded spending to date as well as estimates of the other effects of ARRA on spending and revenues, CBO has estimated the law’s impact on employment and economic output using evidence about the effects of previous similar policies on the economy and using various mathematical models that represent the workings of the economy. On that basis, CBO estimates that in the first quarter of calendar year 2010, ARRA’s policies:

* Raised the level of real (inflation-adjusted) gross domestic product (GDP) by between 1.7 percent and 4.2 percent,
* Lowered the unemployment rate by between 0.7 percentage points and 1.5 percentage points,
* Increased the number of people employed by between 1.2 million and 2.8 million, and
* Increased the number of full-time-equivalent (FTE) jobs by 1.8 million to 4.1 million compared with what those amounts would have been otherwise. (Increases in FTE jobs include shifts from part-time to full-time work or overtime and are thus generally larger than increases in the number of employed workers.)

Didn't tea party pretty boy Scott Brown (R-Mass) say the stimulus had not created even one job. That's sad. Not in Congress for even a year and already in over his pretty little head.