goodmorning annie....this is what the article says about it, which makes it clearer than my attempt.
I am not certain this measure does what you say you heard on it or how this measure would stop them from providing the same benefit....?
I am not certain this measure does what you say you heard on it or how this measure would stop them from providing the same benefit....?
When the Medicare prescription drug program was passed in 2003, it included a provision granting employers a subsidy of 28%, or up to $1,330, per retiree for prescription drug costs.
Even though the federal subsidies were already tax free, employers could still write them off on their income taxes, in addition to writing off their own contribution. The new law, signed by Obama on Tuesday, maintains the subsidy as a tax-free incentive to employers, but prohibits them from taking it as a deduction.
White House spokesman Robert Gibbs defended this change on Thursday, explaining that the previous law essentially allowed for two deductions - one for the employer's own contribution, and another for the tax-free federal subsidy.
"This bill, our bill simply closes the loophole and allows them to deduct that money one time by not counting it as income," Gibbs said.