Full List of Obamacare Tax Hikes
http://www.atr.org/full-list-obamacare-tax-hikes-a6996
Obamacare law contains 20 new or higher taxes on
American families and small businesses
Taxpayers are reminded that the President’s healthcare law is one of the
largest tax increases in American history.
Obamacare contains 20 new or higher taxes on American families and small
businesses.
Arranged by their respective effective dates, below is the total list of all
$500 billion-plus in tax hikes (over the next ten years) in Obamacare, where to
find them in the bill, and how much your taxes are scheduled to go up as of
today:
Taxes
that took effect in 2010:
1. Excise Tax on Charitable Hospitals (Min$/immediate):
$50,000 per hospital if they fail to meet new "community health assessment
needs," "financial assistance," and "billing and collection" rules set by HHS.
Bill: PPACA; Page: 1,961-1,971
2. Codification of the “economic substance doctrine” (Tax
hike of $4.5 billion). This provision allows the IRS to disallow
completely-legal tax deductions and other legal tax-minimizing plans just
because the IRS deems that the action lacks “substance” and is merely intended
to reduce taxes owed. Bill: Reconciliation Act; Page:
108-113
3. “Black liquor” tax hike (Tax hike of $23.6 billion).
This is a tax increase on a type of bio-fuel. Bill: Reconciliation
Act; Page: 105
4. Tax on Innovator Drug Companies ($22.2 bil/Jan 2010):
$2.3 billion annual tax on the industry imposed relative to share of sales made
that year. Bill: PPACA; Page: 1,971-1,980
5. Blue Cross/Blue Shield Tax Hike ($0.4 bil/Jan 2010): The
special tax deduction in current law for Blue Cross/Blue Shield companies would
only be allowed if 85 percent or more of premium revenues are spent on clinical
services. Bill: PPACA; Page: 2,004
6. Tax on Indoor Tanning Services ($2.7 billion/July 1,
2010): New 10 percent excise tax on Americans using indoor tanning salons.
Bill: PPACA; Page: 2,397-2,399
Taxes
that took effect in 2011:
7. Medicine Cabinet Tax ($5 bil/Jan 2011): Americans no
longer able to use health savings account (HSA), flexible spending account
(FSA), or health reimbursement (HRA) pre-tax dollars to purchase
non-prescription, over-the-counter medicines (except insulin). Bill:
PPACA; Page: 1,957-1,959
8. HSA Withdrawal Tax Hike ($1.4 bil/Jan 2011): Increases
additional tax on non-medical early withdrawals from an HSA from 10 to 20
percent, disadvantaging them relative to IRAs and other tax-advantaged accounts,
which remain at 10 percent. Bill: PPACA; Page:
1,959
Tax
that took effect in 2012:
9. Employer Reporting of Insurance on W-2 (Min$/Jan 2012):
Preamble to taxing health benefits on individual tax returns. Bill:
PPACA; Page: 1,957
Taxes
that take effect in 2013:
10. Surtax on Investment Income ($123 billion/Jan. 2013):
Creation of a new, 3.8 percent surtax on investment income
earned in households making at least $250,000 ($200,000 single). This would
result in the following top tax rates on investment income: Bill:
Reconciliation Act; Page: 87-93
| Capital Gains | Dividends | Other* | |
| 2012 | 15% | 15% | 35% |
| 2013+ | 23.8% | 43.4% | 43.4% |
*Other unearned income includes (for surtax purposes) gross income from
interest, annuities, royalties, net rents, and passive income in partnerships
and Subchapter-S corporations. It does not include municipal bond interest or
life insurance proceeds, since those do not add to gross income. It does not
include active trade or business income, fair market value sales of ownership in
pass-through entities, or distributions from retirement plans. The 3.8% surtax
does not apply to non-resident aliens.
11. Hike in Medicare Payroll Tax ($86.8 bil/Jan 2013):
Current law and changes:
|
First $200,000 ($250,000 Married) Employer/Employee |
All Remaining Wages Employer/Employee | |
| Current Law |
1.45%/1.45% 2.9% self-employed |
1.45%/1.45% 2.9% self-employed |
| Obamacare Tax Hike |
1.45%/1.45% 2.9% self-employed |
1.45%/2.35% 3.8% self-employed |
Bill: PPACA, Reconciliation Act; Page: 2000-2003;
87-93
12. Tax on Medical Device Manufacturers ($20 bil/Jan 2013):
Medical device manufacturers employ 360,000 people in 6000 plants across the
country. This law imposes a new 2.3% excise tax. Exempts items retailing for
<$100. Bill: PPACA; Page: 1,980-1,986
13. Raise "Haircut" for Medical Itemized Deduction from 7.5% to 10%
of AGI ($15.2 bil/Jan 2013): Currently, those facing high medical
expenses are allowed a deduction for medical expenses to the extent that those
expenses exceed 7.5 percent of adjusted gross income (AGI). The new provision
imposes a threshold of 10 percent of AGI. Waived for 65+ taxpayers in 2013-2016
only. Bill: PPACA; Page: 1,994-1,995
14. Flexible Spending Account Cap – aka “Special
Needs Kids Tax” ($13 bil/Jan 2013): Imposes cap on FSAs of $2500 (now
unlimited). Indexed to inflation after 2013. There is one group of FSA owners
for whom this new cap will be particularly cruel and onerous: parents of special
needs children. There are thousands of families with special needs children in
the United States, and many of them use FSAs to pay for special needs
education. Tuition rates at one leading school that teaches special needs
children in Washington, D.C. (National
Child Research Center) can easily exceed $14,000 per year. Under tax rules,
FSA dollars can be used to pay for this type of special needs
education. Bill: PPACA; Page: 2,388-2,389
15. Elimination of tax deduction for employer-provided retirement Rx
drug coverage in coordination with Medicare Part D ($4.5 bil/Jan 2013)
Bill: PPACA; Page: 1,994
16. $500,000 Annual Executive Compensation Limit for Health Insurance
Executives ($0.6 bil/Jan 2013). Bill: PPACA; Page:
1,995-2,000
Taxes
that take effect in 2014:
17. Individual Mandate Excise Tax (Jan 2014): Starting in
2014, anyone not buying “qualifying” health insurance must pay an income surtax
according to the higher of the following
| 1 Adult | 2 Adults | 3+ Adults | |
| 2014 | 1% AGI/$95 | 1% AGI/$190 | 1% AGI/$285 |
| 2015 | 2% AGI/$325 | 2% AGI/$650 | 2% AGI/$975 |
| 2016 + | 2.5% AGI/$695 | 2.5% AGI/$1390 | 2.5% AGI/$2085 |
Exemptions for religious objectors, undocumented
immigrants, prisoners, those earning less than the poverty line, members of
Indian tribes, and hardship cases (determined by HHS). Bill:
PPACA; Page: 317-337
18. Employer Mandate Tax (Jan 2014): If an employer does
not offer health coverage, and at least one employee qualifies for a health tax
credit, the employer must pay an additional non-deductible tax of $2000 for all
full-time employees. Applies to all employers with 50 or more employees. If any
employee actually receives coverage through the exchange, the penalty on the
employer for that employee rises to $3000. If the employer requires a waiting
period to enroll in coverage of 30-60 days, there is a $400 tax per employee
($600 if the period is 60 days or longer). Bill: PPACA; Page:
345-346
Combined score of individual and employer mandate tax penalty: $65
billion/10 years
19. Tax on Health Insurers ($60.1 bil/Jan 2014): Annual tax
on the industry imposed relative to health insurance premiums collected that
year. Phases in gradually until 2018. Fully-imposed on firms with $50 million
in profits. Bill: PPACA; Page: 1,986-1,993
Taxes
that take effect in 2018:
20. Excise Tax on Comprehensive Health Insurance Plans ($32
bil/Jan 2018): Starting in 2018, new 40 percent excise tax on “Cadillac” health
insurance plans ($10,200 single/$27,500 family). Higher threshold ($11,500
single/$29,450 family) for early retirees and high-risk professions. CPI +1
percentage point indexed. Bill: PPACA; Page:
1,941-1,956
The Congressional Budget Office (CBO) estimates the invasive revenue generating device could produce as much as $36 billion over ten years.[15] The fines are euphemistically dubbed "shared responsibility payments."[16] Employers would be required to deduct the penalties from employees paychecks.[17]
ObamaCare will do more than detrimentally impact healthcare accessibility. According to the Heritage Foundation, Obama is intentionally sacrificing millions of jobs, at a time when unemployment is around 10%, with the Medicare surtax without any objective exception of increases in revenues.[19] ObamaCare will cost 650,000 U.S. jobs if it is not repealed. The Congressional Budget Office says the figure would be more than 800,000 people would lose their jobs. [20]
15. http://allnurses-central.com/world-news-current/proposed-senate-plan-405168.html, ALLNURSES CENTRAL, Jul 03, 2009.
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