Our officials in Washington claim that only the “big money earners” will pay higher taxes under the “redistribution of wealth” policy that’s overtaking our country. Well here’s an example of how those benevolent folks are about to dip into our pockets a little deeper … Flexible Spending Accounts (FSAs) are a sweet benefit that lets employees pay some of their medical expenses with pretax money. That means if you’re in the 25% tax bracket, you could save 25% on out-of-pocket medical costs for things such as prescriptions, eyeglasses, and dental work. So you can understand why FSAs are popular. In fact, 35 million workers, with an average salary of $55,000, participate in them!
Your employer sets the amount you can set aside each year … usually between $3,000 to $5,000.
But within the health-reform bill that Congress is debating, the most you could contribute will be $2,500. The means the average worker stands to lose $625 in tax savings. The House limits wouldn’t take effect until 2013. The Senate’s limits in 2011. There you have it: Another example of Washington looking for every dollar it can find to fund politicians’ irresponsible spending ... even if that means going after American’s workers. Best wishes, George