Congress plans to eliminate health insurance tax break

Currently, tax-free health benefits from employers are the largest tax break in the nation. The estimated 2010 cost of this tax advantage is $155 billion and is projected to increase to $924 billion by 2014, according to the White House office of Management and Budget.

Note that these costs are just estimated potential revenue gains if the Treasury were to tax employer health insurance benefits.

Tax writing committees in Congress are busy drafting a plan that will place a cap on these tax breaks that currently benefit high income employees with top notch insurance policies. Their plan will call for these individuals to pay taxes on part of their received benefits. Congress plans to unveil this health care proposal next week.