A few days ago we posted an article entitled “You Have To Think About It To Know What’s In It”. In that piece we pointed out the cost resulting from differing tax treatment when employers move their employees from employer provided health insurance to Obamacare Insurance Exchange Policies. Specifically, policies purchased through exchanges would use post-tax rather than pretax dollars.
According to the New York Times, members of Congress and their aides are required to obtain their health insurance from the Obamacare Insurance Exchanges (we already knew that) and no longer from the Federal Employees Health Benefits Program. However, it has just dawned on them, and in particular the lower salaried aides, that Obamacare does not provide any way for their Obamacare insurance exchange policies to be partially paid by their employer, the federal government. The New York Times goes on to estimate the increased annual cost as a result of this is $5,000.00. This is a huge amount for lower salaried aides and other employees.
Some of the Congressional aides may be exempt although The New York Times is reporting no one is sure. It is also being speculated the Federal Government can write a regulation that cures the issue; although that in itself could create a separate firestorm.
Horowitz Law Offices represents individuals and businesses for IRS Appeals, Tax Court, Audits and Collections. We also regularly represent Individuals and businesses before the Illinois Department of Revenue (IDOR) for income tax, sales tax, use tax and motor fuel tax audits and collection as well as exemption claims for airplanes, boats, motor vehicles, rolling stock and heavy machinery.