Full List of Obamacare Tax Hikes
Posted by Ryan Ellis, John
Kartch (Twitter: @Taxplaya, @JohnKartch) on Thursday, June 28th, 2012, 3:00 PM PERMALINK
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. High Medical Bills Tax ($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
http://www.atr.org/full-list-obamacare-tax-hikes-a6996
No comments:
Post a Comment