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Tell Congress That Taxing Your Health Care Benefits to Achieve Health Care Reform is a Bad Idea
President Obama believes healthcare in this country must be reformed to provide cost-effective insurance coverage to all Americans. President Obama also said such reform "should never be purchased with tax increases on middle class families, because that is the last thing we need in an economy like this."
Well, some members of Congress haven't listened to the President and are proposing that your health care benefits be subject to federal income tax. In other words, the over $12,000 in employer-paid premiums under your health insurance plan would be considered part of your income and you would be required to pay federal income tax on that amount as well as additional Tier I and Tier II Railroad Retirement taxes.
The only way such a bad idea could become law is if hard-working men and women stay silent on the sidelines. The Teamsters, the BMWED and the Teamsters Rail Conference are working hard to support President Obama and fight against any taxation of employer-provided health care benefits.
What will make a big difference are letters from you, the rank-and-file members who use these benefits, have to meet a family budget every month and can't afford more taxes just to keep the same health insurance benefits you have today.
Make sure your Representative and Senators hear you loud and clear by sending them an email today. Working families can't afford a tax increase on their healthcare benefits.
| Sample Letter for Campaign |
Subject: Tell Congress That Taxing Your Health Care Benefits to Achieve Health Care Reform is a Bad Idea
Dear [ Decision Maker ] ,
I understand that some members of Congress are considering taxation of the health care benefits my family and I receive under the terms of the collective bargaining agreement between my union and my employer. I am writing to ask you to oppose any such proposal.
Presently, my health insurance premiums amount to over $14,000 a year and I contribute over $2000 of my wages towards those premiums. In other words, about $12,000 in healthcare premiums are paid by my employer under the terms of the collective bargaining agreement. Taxing those premiums as income to me would immediately raise my Tier I and Tier II Railroad Retirement Taxes by almost $1400.00 a year. Depending upon my federal income tax bracket, that $12,000.00 of income imputed to me could raise my income tax bill by 30 to 40 percent. Frankly, in this time of declining overtime work and railroad cutbacks in production work, I cannot afford such a tax increase.
In addition, you should know that over the years I have given up wage increases to maintain my health care benefits. In 2001, I ratified an agreement that provided wage increases that would not keep pace with inflation to help protect and preserve my health care benefits. In the most recent agreement, I voted to pay 15 percent of the cost of the insurance premiums through a deduction from my paycheck. I have "taxed" myself enough to pay for this very important benefit. I cannot afford to pay another tax that will make no change to the health care benefits I receive under my collectively bargained plan.
Again, I urge you to oppose any taxation of the health care benefits my family and I receive.
Sincerely,
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