Dear Valued Employee: [Is this a rip, or what?]?
Isn't this the biggest rip you've seen?? Got this in the company mail today: Dear Valued Employee: As you know, President Obama has asked Co...
Isn’t this the biggest rip you’ve seen??
Got this in the company mail today:
Dear Valued Employee:
As you know, President Obama has asked Congress to pass the beginning of his health insurance plan for all Americans. The starting plan will cost some billion a year, of which the President has proposed billion in higher taxes for firms doing business overseas, which is half our company’s business. He asked Congress to find the rest of the money.
Congress has said the other billion a year will come from disallowing corporate tax deductions for employee health insurance, as well as raising the general corporate income tax rate to 35%.
The company will absorb the higher taxes on our foreign operations and the tax increase to 35% even though we expect this to eliminate our currently low net income.
Our corporation pays approximately ,000 per year per single employee and ,000 per year per employee family for the health insurance coverage you presently have.
This means that Congress has decided to raise our taxes by 00 per employee with single coverage and 50 per employee with family coverage.
As you know, our company’s sales have recently fallen by more than at any previous time in our company’s history. Our company is paying no dividends to the owners and may soon be in danger of not earning the interest cost of our debts.
Accordingly, we must pass onto our employees the entire added tax that Congress will impose on your health insurance plan. It is either this, go out of business, or move operations and most jobs overseas.
Effective the first of next month, all US employees electing single coverage health insurance will have their monthly contribution increased by 175 dollars and those electing family coverage will contribute an added 262.50. For hourly employees paid every two weeks, this is .75 and 1.15 respectively.
Thank you for your continued efforts to make the company profitable,
Human Resources Department
Your company appears to know the truth about Obama’s healthcare reform and how it would affect employees now covered by insurance. You’re very fortunate to be working for a company that sees a disaster in the making.
I think they are exaggerating the situation (if it is a real letter), and a submitted bill has to go through a lot before it is passed. Why should taxing on overseas operations fall on the workers’ health insurance? That is just bizarre.
some time the truth is painful!
Partly considering such legislation has not specifically been passed yet.
I think this is the wrong approach to solving our nation’s health care issues for all it is doing is passing the buck from corporate america to the workers. Basically your company is saying for you to have insurance, you have to now pay the taxes on it that were able to deduct previously.
On the other hand, I think you should be thankful to have a job that has even partially paid insurance. How much are you currently paying prior to the raise in insurance would be another question. Or perhaps you should be thankful to have a job at all, for as they indicate in their letter, it might mean moving jobs overseas which isn’t going to help anyone either.
We’ve dug ourselves a wonderful whole. I don’t have all the answers either, but everyone is going to have to tighten their belts just a little bit more.
This is really shocking. You might be better off talking to an insurance broker and get your coverage elsewhere. See if you can opt out of your company’s plan. I live in Canada and it’s all different here, but your situation stinks.
yeah, i know. i got one from our hospital pretty much saying the same thing. also, that we probably won’t be getting any merit raises either.
sucks the big wang. and they wonder why no one gives a sheet.
Sounds like the normal response when taxes are raised, they always get rolled down to the guy at the bottom. Maybe Obama should read that.