Posted: Oct 17, 2005 By: Nadir Minocher

Subject: Corporate Deduction for Health Ins Premiums

Comment: Dear Sir/Madam: The most pressing competitive issue facing established employers today is the cost of labor, and the largest issue within that seems to be the cost of benefits.These costs have been rising at many times the rate of overall inflation and may be forcing many employers to curtail and eliminate benefits in order to continue to maintain their profitability; and to continue to foster growth.
How does a "30-40%"(depending on their tax bracket) increase in the cost of Health Benefits sound? This is the question you must ask -if that is what is being contemplated. I understand revenue raising is difficult but this is no way to accomplish that, it will cause thousands of small to mid size employers to "dump" thousands of employees on the federal help programs- if they can qualify. Not a solution at all, ill conceived at best. A large segment of the health care industry, hospitals, insurers, are not taxpayers may with huge cash reserves, maybe taxing their reserves and investment income, would be worth a look- Just one man's view that may be reflected by many others.