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Wednesday, July 8, 2015

IRS Screwing Small Businesses Who Help Employees With Health Insurance Expenses

Tyranny By Regulation

A new regulation became effective July 1 by the Internal Revenue Service that would penalize small businesses with a hefty fine just for helping their employees obtain health insurance.

Rush Limbaugh talked about this yesterday:
Wait until you hear this next story.  It is from Forbes.  Here's the headline: "Small Businesses Threatened with $36,500 IRS Fines For Helping Employees with Health Costs." This was not and is not part of Obamacare.  The IRS just created this, and that's one of the problems with Obamacare.  
Obamacare is open ended.  The secretary of Health and Human Services can invent regulations.  The IRS can invent new tax rules and regulations, and they've just done it.  
This provision was never voted on by anybody in Congress. 

According to Newsmax:
Small businesses can be fined up to $36,500 a year per employee by the Internal Revenue Service under a new regulation that went into effect on July 1 if they assist their workers with their health costs. 
This rule, which does not appear anywhere in the Affordable Care Act, mandates that employers who give their employees additional pay to compensate for medical expenses or health insurance purchases, but who do not offer any group health plan for their employees, will be fined $100 per day per employee, according to the National Federation of Independent Business. That adds up to $36,500 a year per employee up to a total of $500,000 in fines. 
“It’s the biggest penalty that no one is talking about,” said NFIB policy director Kevin Kuhlman. “The penalty for compensating employees for healthcare-related expenses is enough to destroy most small businesses.” 
The penalty will apply whether the reimbursement is a before-tax or after-tax contribution, according to Forbes, and the fine rises to more than 18 times greater than Obamacare’s $2,000 employer-mandate penalty for an employer who does not provide health insurance for his or her employees.
This IRS regulation has been imposed with no legal basis to do so. It is not in the Affordable Care Act or in any other law. This is clearly tyranny by bureaucratic elites.

To read more, go here.

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