Health care debate is on!

November 22, 2009

OK, you're right. The debate's been going on for years.

But the official, formal, legislative debate on Capitol Hill, specifically in the Senate, will go forward, thanks to Saturday night's vote.

The House passed its $1 trillion health bill two weeks ago. Senate leaders hope to get a completed vote on their $848 billion overhaul proposal before the Christmas break.

If that happens, and that's still a bit if, we would kick off the second session of the 111th Congress with negotiations between the House and Senate on how to meld the bills into one piece of legislation.

That's going to take a lot of work. Both measures are ginormous.

The Senate version right now is more than 2,000 pages. What finally is approved, if anything, could be even bigger. You don't really think it'll get smaller as the legislative process proceeds, do you?

The House bill also is 2000-plus pages.

If you don't want to slog through both bills, a couple of sites do a very good job of breaking out the keep components:

Since you're here now, though, the table below gives a glimpse of the taxes in each bill that you and I could face:

House tax provisions Senate tax provisions
5.4 percent surtax on high-income individuals, defined as single filers with adjusted gross incomes of more than $500,000 and couples who file jointly with more than $1 million AGI 40 percent excise tax on “Cadillac” health plans, i.e., employer-sponsored group health plans with premiums over $8,500 for individual coverage and $23,000 for family. This would not be assessed on workers, but could affect the cost of workplace coverage.
2.5 percent excise tax on the medical devices sold for use in the United States. Increase Medicare payroll tax rate from 1.45 percent to 1.95 percent for workers with annual incomes of more than $250,000
  5 percent tax on elective cosmetic medical procedures, collected by doctors and clinics and forwarded to Treasury

Again, while this is the farthest any health care reform bill has ever made it on Capitol Hill, there are still potential potholes and roadblocks ahead. So don't think that what you're reading now will be the final product.

But it's definitely worth keeping track of what Congress is using as a road map.

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Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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