Monday, January 23, 2012
The big Chicago law firm Mayer Brown has produced a "legal update" that describes new rules from the Internal Revenue Service that require employers to calculate and report the cost of health insurance provided to employees on each W-2. So, yes, beginning in 2013 (for the 2012 year), employers have to tell the government what they spend on health insurance.
Since employer-provided health benefits are not taxable, one might reasonably ask why the Democrats required the Internal Revenue Service to collect that information. If, you know, one were a citizen of ordinary curiosity.
My take is they want to make a static analysis of how much tax revenue would be generated by partial or total repeal of the tax exemption on health benefits.
Actually doing that would kill the private insurance industry, which is probably the point.