IRS – Bad For Your Health

September 10, 2009

Put this in your pipe and smoke it:  the Revenooers could become the chief enforcement agency under the Obama-proposed health care regime!

            As noted in recent reportage by the Washington Examiner, if proposals now on the table eventually get enacted, the IRS would become the main agency for determining who has an “acceptable” health insurance plan; would be responsible for finding and punishing those who don’t have such a plan; would be in charge of enforcing the rules on those who attempt to opt out.

            Notes the Examiner, “So far, there has been little substantive public debate about the integral role of the IRS in nearly every aspect of the various national health care proposals.”

            We’re hopeful none of us has to find out how the IRS would handle all of this.

            And how about this one:  recent estimates by the Congressional Budget Office suggest that a tax of 3 pennies on every 12 ounce jug of soda would raise $50 billion over ten years–a hefty down payment on the cost of all of this government-sponsored health care nonsense.

            But what if such a new levy were to reduce consumption–yet another bit of social engineering which the “fat police” come forth with every now and then?

            According to Mary Story, a dietitian and public health prof at the University of Minnesota, something like a 10 percent increase in sugar-sweetened beverage prices could cut consumption by 8 to 10 percent!

            Taxes go up; consumption goes down–conflicting results for most liberals.

            And the latest from California:  the state Controller will now begin issuing checks rather than IOUs and the state Treasurer will begin redeeming IOUs right away!  We hear payment of IOUs will include interest at a not so paltry rate (these days, at least) of 3.75%!

            But don’t spend it all in one place–recall that California also recently enacted a 0.25% individual tax rate increase for 2009

            And finally this week, for those of you still slogging through your 2008 tax records and trying to file partnership, LLC and trust returns previously placed on extension, don’t lose sight of the fact that those Federal returns are due on September 15, this year, contrary to the October 15 extension deadlines which prevailed in the past.

            If you haven’t already, get on them now!

CONSULT YOUR TAX ADVISOR – This article contains general information about various tax matters.  You should consult your CPA regarding the implications to your own particular situation.

            Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno.  He is also a contributor to the recently published twelfth edition of Tax Savvy for Small Business, published by Nolo.  He can be reached at 831-7288, and welcomes comments at below.

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