Taxman Cometh!

As we are all painfully aware, today is Tax Day that time of year when we are reminded that while we are working within a household budget, the U.S. Congress is already thinking of creative ways to spend our money or extract more of it. The latest example comes from House Ways and Means Chairman Charles Rangel (D-N.Y.) whose bill, the "Taxpayer Assistance and Simplification Act" (H.R. 5719), is scheduled for a vote this week. Ironically, the only assistance his legislation offers is to put a greater tax burden on the seven million Americans who have Health Savings Accounts (HSAs). Under HSAs, participants can set aside their own money and invest it. If they use that money for medical purposes, members aren't required to pay taxes on their account. Rangel's H.R. 5719 would force HSA members to wade through piles of paperwork, which, if filled out incorrectly, would result in a hefty fine. Chairman Rangel (who has never met a tax hike he didn't like) sees this bill as an opportunity to create more unnecessary government bureaucracy in pursuit of more tax dollars. Unfortunately, this is just the beginning of tax hikes to come as Rangel and the Democratic majority plan on letting the Bush tax cuts expire. Without permanent tax relief, the average family will be paying an extra $3,500 every year to Uncle Sam.

Source: FRC