There Must be 50 Ways to Kill Obamacare
Once upon a TIME, not so long ago, a small business couple from Minnesota sent their oldest son to the University of Iowa in Iowa City. He received a degree in history but his major was girls. He married a girl named Joni who seemed so nice at the TIME. Joni and the son begged the parents to help pay for Joni’s education so she could become an anesthesiologist and they gave in and paid. After college the couple moved back to Minnesota and Joni worked at the hospital and the son went to work for the parent’s roofing company as a crew leader. This son is so dependable and hardworking that he has become the glue that holds the roofing company together.
Joni is now making the big bucks of $325,000 a year and has developed a Monster Ego like many physicians. She keeps insisting that the son quit his job and stay at home and baby sit the twin daughters after school. It’s worse than that, Joni is a Democrat! The parents think she is a psycho. She looks down her nose at her husband because his income is so much less. When the son made those weekend trips from Iowa City, back in college, he should have said, “Please, feed my Frankenstein!”
The parents can only pay the son $25,000 a year but he is worth a million to their roofing company. The hospital would charge Joni $800 a month for her to add her family to their employer-based health insurance. The son has decided to put him and the beautiful twins on the parent’s benefits because his parents have seen the light and maximize the Health Savings Account (HSA) for their employees. The savings with a tax-free HSA can sometimes be almost magical. The maximum HSA deposit for 2017 is $6,750 for a family. A family is anything other than one person with HSA rules.
The son saves Payroll tax (6.75%), Federal Income Tax (33%) and State Income Tax (9.85%) on the employer HSA deposit of $6,750 or 49.6%. The son saves $3,348. The parent’s roofing company saves Payroll Tax (6.75%), Workers’ Comp (57.06%) and FUTA tax (9%) or 72.81%. The roofing company saves $4,914. In other words, when you add the employee savings with the employer savings it totals $8,262 on the smaller $6,750 HSA deposit that is setting in the bank account of the son. The HSA is compensation without taxation. It’s smart when employers and employees band together and cut the IRS out. It’s not magic, it’s just math.
The best part about the tax-free HSA is that it doesn’t feed the beast, the government. The easiest way for the Republican Senators to kill Obamacare is to promote the center-piece of Republican health care REFORM, the tax-free HSA. I wouldn’t hold your breath because tax FREEDOM is a bit too complicated for them. IRAs are old taxed accounts. HSAs enjoy tax-free deposits, growth and withdrawals – AMEN! HSAs mean; total tax FREEDOM. These Republican Senators should be screaming, “The BEST tax cut is NO TAXES and it’s TIME for your HSA.”
There are 2 sectors to the American economy, the government sector and the private sector. Hillary Clinton said, “No, No, NO, HSAs put too much money in the private sector.”
Today is Mother’s Day. Some mothers say about their daughter-in-law, “How could a psycho woman like that give birth to the most beautiful twin granddaughters in the world?”
Truth: Frankenstein was the name of the doctor and not the monster.
Sadly, US Senator Al Frankenstein isn’t running for re-election in 2018, darn.