Subject: PRESIDENT'S ADVISORY PANEL ON TAX REFORM Comment: INDIVIDUAL EMPLOYERS OFFER A BENEFIT PACKAGE THAT MAY INCLUDE, BUT IS NOT LIMITED TO, HEALTH INSURANCE. I FEEL THAT THIS WOULD BE TARGETING ONE PARTICULAR BENEFIT FOR TAXATION THAT AN EMPLOYER, BASED ON THEIR ECONOMIC STATUS, WOULD OFFER THEIR EMPLOYEES. OUR FACILITY HAPPENS TO CURRENTLY HAVE AN EXCELLENT HEALTH INSURANCE PLAN THAT WE CAN OFFER OUR EMPLOYEES. I DO FEEL THAT TAXATION OF THE BENEFIT COULD BE DETRIMENTAL TO A LARGE PERCENT OF OUR EMPLOYEES, WHO ARE MOSTLY NOT IN HIGH INCOME POSITIONS. THE ECONOMY IS NOT GOOD IN MICHIGAN, AND THERE ARE VERY FEW JOB OPPORTUNITIES IN BAY COUNTY WHERE WE ARE LOCATED. OUR UNEMPLOYMENT RATE HERE IS AMONG THE HIGHEST IN THE STATE AS WELL AS OUR JOB LOSS RATE. WE ARE ON THE VERGE OF LOSING GM POWER TRAIN IN BAY CITY, WHICH EMPLOYS APPROX. 800 PEOPLE. EMPLOYERS ARE BEING FORCED TO INCREASE THE CO-PAYS AND DEDUCTIBLES FOR THEIR EMPLOYEES TO HELP CONTAIN THE COST AND STILL STAY IN BUSINESS. WOULD THE PROPOSAL CREATE A DOUBLE WHAMMY FOR EMPLOYEES? I ALSO FEEL EMPLOYERS ARE BURDENED WITH PLENTY OF LEGISLATION ALREADY TO COMPLY WITH - FMLA, HIPPA, WAGE AND HOUR LAW, SOCIAL SECURITY PRIVACY, WORKERS' COMP. AND ON AND ON. WE HAVE HRA’S AND HSA'S TO TRY TO HELP EMPLOYEES WITH THE BURDEN OF PAYING A HIGH PERCENTAGE TOWARD THEIR HEALTH INSURANCE AND WE DO NOT NEED ANOTHER LEVEL OF RESPONSIBILITY OF REPORTING THIS ON EVERY EMPLOYEE FOR TAXATION PURPOSES OR TO TURN AROUND AND TAX THEM ON THE BENEFIT THEY HAVE LEFT. I FEEL THE ADVISORY PANEL SHOULD LOOK ELSEWHERE FOR TAX REFORM ISSUES IF THEY ARE LOOKING TO SIMPLIFY THE EXISTING SYSTEM. |