The release of President a Obama’s deficit reduction plan comes just a week after the President submitted to Congress the actual text of his proposed jobs legislation.
NAHU’s greatest concern with S. 1549 , which seems quite unlikely to move forward in its current form, is that, as a pay for, the bill would change the tax treatment of employer-sponsored health insurance. Section 401 of the bill limits the value of all itemized deductions for married couples filing jointly with adjusted gross income of at least $250,000 and single taxpayers with adjusted gross income of at least $200,000 to 28 percent. This would include the cost of employer-sponsored health coverage and deductions for health-spending accounts (HSAs and HRAs). The amount that is reported by the employer for the employee is not excludable by the taxpayer. Republicans have expressed openness to some elements of the jobs proposal but have generally opposed the proposed tax changes and other revenue raisers that President Obama outlined. A number of Democrats also have spoken out against elements of the President’s proposal.