The release of President Barack Obama’s deficit reduction plan comes just a week after the President submitted to Congress the actual text of his proposed jobs legislation. The bill, S.1549 , 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 savings accounts (HSAs and HRAs). The amount that is reported by the employer for the employee is not excludable by the taxpayer.
