“Have I scared you yet?” asked Scott Hughes, CPA with Johnson, Price and Sprinkle Accountants during the September Council of Independent Business Owners meeting. “This is so bad an estimated 4 million people will pay the penalty rather than get this insurance.”
Hughes attempted to describe the tremendous intricacies of the recently passed, 2,300 page health care bill. “I’m here to tell you, if you make a good living, you’re going to pay more,” he said.
Hughes said the amount of cost for the system will far exceed the available income. He said the law would be administered by the IRS and the amount of reporting between the employer, the insurance company and the IRS would be huge.
“The amount of notices the IRS will be sending out will be monstrous,” said Hughes who added it would take an additional 2000 computer programmers to write the code for just one provision in the bill.
Hughes warned because of this bill, taxes will be significantly increasing in 2013. He explained when compiled with the tax credits that are ending, this could mean as much as a 23 to 39 percent increase for many employers.
“The Associated Press said, according to the IRS, this was the largest set of tax law changes in the last 20 years,” said Hughes who added the tax reporting for this bill would only get bigger.
Since the law will affect dividends, annuities, royalties, municipal bonds, capital gains and other forms of investments, Hughes recommended business owners consider making some significant changes before December 31. “If we wait until after December 31, it’s too late,” he said.
“No one knows what the effect of this bill will be on the economy,” said Hughes. “The impact of this law on the medical system has not been looked at.”
Buncombe County Tax Director Gary Roberts also discussed taxes at the meeting, giving some information on the recent property tax re-evaluation. He said though the policy is usually to re-evaluate every four years, the tax department waited seven years because of the downward fluctuations in property values cause prices to reflect the values seen in 2006 and 2007.
The meeting opened with CIBO members electing new officers. The new officers are President, Rod Hudgins of Rod Hudgins Engineering, Vice President, Chris Eller of Civil Design Concepts, Secretary/Treasurer, Scott Hughes of Johnson, Price and Sprinkle CPA’s.
Representing the class one membership category is Kerney Mitchell of Preferred Storage. Representing the class two membership category is Jan Davis of Jan Davis Tire Store and representing the class three membership category is Josh Holmes of Ed Holmes and Associate Land Surveyors.