1. A 156 percent increase in the
federal excise tax on tobacco: On
February 4, 2009, just sixteen days into his Administration, Obama signed
into law a 156 percent increase in the
federal excise tax on tobacco, a hike of 61 cents per pack. The median income
of smokers is just over $36,000 per year.
2. Obamacare Individual
Mandate Excise Tax (takes effect in Jan 2014):
Starting in 2014, anyone not buying “qualifying” health insurance – as defined
by Obama-appointed HHS bureaucrats -- 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
|
The Congressional Budget Office
recently estimated that six
million American families will be liable
for the tax, and as Americans for Tax Reform has pointed out, 100 percent of
Americans filing a tax return (140 million filers) will be forced
to submit paperwork to the IRS
showing they had “qualifying” health insurance for every month of the tax
year. Bill: PPACA; Page:
317-337)
3. Obamacare Employer
Mandate Tax (takes effect 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
4. Obamacare Surtax on
Investment Income (Tax hike of $123
billion/takes effect 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*
|
|
2011-2012
|
15%
|
15%
|
35%
|
|
2013+
(current law)
|
23.8%
|
43.4%
|
43.4%
|
|
2013+
(Obama budget)
|
23.8%
|
23.8%
|
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.
5. Obamacare Excise Tax on
Comprehensive Health Insurance Plans (Tax
hike of $32 bil/takes effect 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
6. Obamacare Hike in
Medicare Payroll Tax (Tax hike of
$86.8 bil/takes effect 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
7. Obamacare Medicine
Cabinet Tax (Tax hike of $5 bil/took
effect Jan. 2011): Americans are 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. Obamacare HSA
Withdrawal Tax Hike (Tax hike of
$1.4 bil/took effect 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
9. Obamacare Flexible
Spending Account Cap – aka “Special Needs Kids Tax” (Tax hike of $13 bil/takes effect Jan. 2013):
Imposes cap on FSAs of $2500 (currently 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
10. Obamacare Tax on
Medical Device Manufacturers (Tax
hike of $20 bil/takes effect Jan. 2013): Medical device manufacturers
409,000 people in 12,000 plants across the country. This law imposes a new 2.3
percent excise tax on total sales, even if the respective company does not earn
a profit. Exempts items retailing for <$100. Bill: PPACA; Page: 1,980-1,986
11. Obamacare "Haircut"
for Medical Itemized Deduction from 7.5% to 10% of AGI (Tax hike of $15.2 bil/takes effect 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
12. Obamacare Tax on
Indoor Tanning Services (Tax hike
of $2.7 billion/took effect July 2010): New 10 percent excise tax on Americans
using indoor tanning salons. Making matters worse: According to a Treasury
Inspector General for Tax Administration report, the Obama IRS didn’t bother to issue compliance guidelines
until three quarterly filing deadlines had passed: “By the time [IRS] notices
were issued, tanning excise tax returns had been due for three
quarters." Bill: PPACA;
Page: 2,397-2,399
13. Obamacare elimination of tax
deduction for employer-provided retirement Rx drug coverage in coordination
with Medicare Part D (Tax hike of $4.5 bil/takes
effect Jan. 2013) Bill: PPACA;
Page: 1,994
14. Obamacare Blue Cross/Blue Shield
Tax Hike (Tax hike of $0.4 bil/took
effect Jan. 1 2010): The special tax deduction in current law for Blue
Cross/Blue Shield companies would only be allowed if 85 percent or more of
premium revenues are spent on clinical services. Bill: PPACA; Page: 2,004
15. Obamacare Excise Tax on
Charitable Hospitals (Min$/took effect
immediately): $50,000 per hospital if they fail to meet new "community
health assessment needs," "financial assistance," and
"billing and collection" rules set by Obama-appointed HHS
bureaucrats. Bill: PPACA; Page:
1,961-1,971
16. Obamacare Tax on Innovator Drug
Companies (Tax hike of $22.2 bil/took
effect 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
17. Obamacare Tax on Health Insurers (Tax hike of $60.1 bil/takes effect 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
18. Obamacare $500,000 Annual
Executive Compensation Limit for Health Insurance Executives (Tax hike of $0.6 bil/takes effect Jan 2013). Bill: PPACA; Page: 1,995-2,000
19. Obamacare Employer Reporting of
Insurance on W-2 ($min/takes effect Jan. 2012):
Preamble to taxing health benefits on individual tax returns. Bill: PPACA; Page: 1,957
20. Obamacare “Black liquor” tax
hike (Tax hike of $23.6
billion/took effect immediately). This is a tax increase on a type of
bio-fuel. Bill: Reconciliation
Act; Page: 105
21. Obamacare Codification of the
“economic substance doctrine” (Tax
hike of $4.5 billion/took effect immediately). 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
See also:
https://www.atr.org/full-list-ACA-tax-hikes-a6996
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