Health Savings Account Plan Document Question & Answers
Will American citizens have to pay for the $12,000,000,000,000 national debt?
Each American shares $38,000 of the national debt, will they eventually have to start paying for it?
Sarah Fields answers:
As a formally employed (for 26 consecutive years) citizen, once of the middle class (now on the verge of financial ruin) I accepted the fact that the only certainties of life is death and taxes. Many would consider themselves lucky to have jobs, and paying taxes is a part of that. And as long as I can be financially self sufficient I won’t sweat the small stuff. It is the wealthy that are sweating it. The Bush tax cuts they have enjoyed all these years are about to expire. They failed to “trickle down” by NOT expanding their businesses here in the U.S. But increased their profits by keeping only their headquarters here and shipping out the blue collar jobs overseas.
To reverse what the Bush Administration did:
Obama Proposes Billions in Tax Cuts and Tax Hikes
Washington, D.C. (May 11, 2009)
By WebCPA Staff
The Obama administration released detailed plans to cut $800 billion in taxes on small businesses and middle-class families over the next 10 years, while raising $122.5 billion in corporate taxes
Then using the best accountants money can buy they reduced their taxes further with tax loopholes. And they hid as much as they could overseas in secret bank accounts.
Tax dodgers scramble to come clean amid crackdown – Yahoo! News
As the gap between the haves and the have nots widened under the Bush Administration President Bush made up the difference of the tax cuts for the wealthy by reducing the budgets of the Social Services that benifited the lower income earners.
Domestic Spending Cuts
Center On Budget and Policy Priorities
Friday, February 27, 2004
DEEP, WIDESPREAD CUTS IN DOMESTIC PROGRAMS OVER
NEXT FIVE YEARS UNDER ADMINISTRATION BUDGET
By 2009, funding for non-entitlement programs in areas such as national resources and the environment, veterans health benefits, health, and agriculture would be 10 percent to 20 percent below the 2004 funding levels, adjusted for inflation. Transportation programs, as well as education, training, and social services programs, would be cut by 7 to 8 percent over this period.
The proposed cuts are so large, an accompanying Center report shows, that by 2009, total funding for domestic non-entitlement programs outside homeland security would fall to its lowest level, measured as a share of the economy, since 1963.
Spending Cuts Would Help Finance Tax Cuts, Not Shrink Deficit
While the budget proposes significant cuts in domestic non-entitlement programs, the resulting savings would be small as a share of the budget because these programs make up only one-sixth of the overall federal budget.
Moreover, the Office of Management and Budgets own documents show that the Administrations proposed tax cuts would cost more than these and other budget cuts would save. As a result, the cuts in domestic discretionary (i.e., non-entitlement) programs would be used to help finance tax cuts, not to shrink the deficit.
The report concludes that deficit-reduction efforts of the type instituted in the late 1980s and 1990s are again needed. Those earlier efforts, the report notes, involved shared sacrifice and coupled restraints on discretionary programs with tax increases especially on those who could most afford them and entitlement reductions. By contrast, the report finds, the Administrations budget singles out domestic discretionary programs and the people they serve for cuts of considerable depth while seeking to confer yet more lavish tax cuts on those who are most well-off.”
Electing a high deductible med plan/HSA compatible.. can we discontinue the FSA?
Would this be a qualifying event? Our employees want to cancel the FSA since they can now get a HSA account. Our rep has not gotten back to me and I need an answer asap. Any help is appreciated.
Also, is this a IRS decision or can the Flex spending company decide what they want?
thanks for your answer but they dont want to keep it so I am seeing if we can discontinue it.
Sarah Fields answers:
No, it is not a qualifying event. Further, if they have a FSA, they are not eligible to open a Health Savings Account. This means, if they elect the HDHP, and they are already enrolled in a FSA that is not defined as a “limited use” FSA, they will have to pay their out of pocket expenses from the FSA, and open a Health Savings Account in 2010. The FSA plan document would need to specifically state that is for post-deductible expenses, and othe QME not covered by the Group Health Insurance plan.
Regualtions are from the IRS, not the plan administrator.
If Ron Paul abolishes the IRS how will we take those healthcare deductions and credits?
I was told this is is plan for healthcare…………..It is time to take back our health care. This is why I support:
Making all medical expenses tax deductible.
Eliminating federal regulations that discourage small businesses from providing coverage.
Giving doctors the freedom to collectively negotiate with insurance companies and drive down the cost of medical care.
Making every American eligible for a Health Savings Account (HSA), and removing the requirement that individuals must obtain a high-deductible insurance policy before opening an HSA.
Reform licensure requirements so that pharmacists and nurses can perform some basic functions to increase access to care and lower costs.
Additional bills he sponsored:
(They reduce health care costs)
HR 3075 provides truly comprehensive health care reform by allowing families to claim a tax credit for the rising cost of health insurance premiums. With many families now spending close to $1000 or even more for their monthly premiums, they need real tax relief– including a dollar-for-dollar credit for every cent they spend on health care premiums– to make medical care more affordable.
HR 3076 is specifically designed to address the medical malpractice crisis that threatens to drive thousands of American doctors- especially obstetricians- out of business. The bill provides a dollar-for-dollar tax credit that permits consumers to purchase “negative outcomes” insurance prior to undergoing surgery or other serious medical treatments. Negative outcomes insurance is a novel approach that guarantees those harmed receive fair compensation, while reducing the burden of costly malpractice litigation on the health care system. Patients receive this insurance payout without having to endure lengthy lawsuits, and without having to give away a large portion of their award to a trial lawyer. This also drastically reduces the costs imposed on physicians and hospitals by malpractice litigation. Under HR 3076, individuals can purchase negative outcomes insurance at essentially no cost.
HR 3077 makes it more affordable for parents to provide health care for their children. It creates a $500 per child tax credit for medical expenses and prescription drugs that are not reimbursed by insurance. It also creates a $3,000 tax credit for dependent children with terminal illnesses, cancer, or disabilities. Parents who are struggling to pay for their children’s medical care, especially when those children have serious health problems or special needs, need every extra dollar.
HR 3078 is commonsense, compassionate legislation for those suffering from cancer or other terminal illnesses. The sad reality is that many patients battling serious illnesses will never collect Social Security benefits– yet they continue to pay into the Social Security system. When facing a medical crisis, those patients need every extra dollar to pay for medical care, travel, and family matters. HR 3078 waives the employee portion of Social Security payroll taxes (or self-employment taxes) for individuals with documented serious illnesses or cancer. It also suspends Social Security taxes for primary caregivers with a sick spouse or child. There is no justification or excuse for collecting Social Security taxes from sick individuals who literally are fighting for their lives.
So in other words he has no healthcare plan or else he is lying through his teeth.
Sarah Fields answers:
With no IRS and no income tax.. There will be nothing to take *any* kind of deductions from. There will also be no way to use an income tax system to penalize some and reward others depending on who is in or out of favor with politicians.
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