Posted: Oct 14, 2005 By: Sharon Vrettas, EDR Media LLC

Subject: Proposed Health Benefits Tax

Comment: Taxing employee health benefits would have serious consequences for our company and our employees. The rate of increase of the cost of health insurance has already been a serious strain on our company's finances and our employees compenstation. We have been forced to pass more and more of the premiums onto the employee, and reduce their benefits in order to stay financially viable. Reducing their income by taxing them on the value of the remainder of the premium paid by the company would cause a serious hardship for many of our staff members. It also would generate tax policies that are at cross purposes with each other. The employee contribution is protected from taxes by our Section 125 plan. We are considering an HSA, which is also tax protected. Why, then, subject the portion of premium employees DON'T pay to taxes? Doesn't seem to make sense.

Sharon Vrettas
Director of Human Resources
EDR Media LLC