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OverSword

Full list of Obamacare tax hikes

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Full List of Obamacare Tax Hikes

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. 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

Printable PDF Version of this Document

Sign Up For Our Email List to Learn about All the Tax Hikes in Obamacare!

Posted by Ryan Ellis and John Kartch (Twitter: @Taxplaya and @JohnKartch) on Thursday, June 28, 2012 3:00 PM EDT

Read more: http://atr.org/full-list-obamacare-tax-hikes-a6996#ixzz2ErLVZBsL

Follow us: @taxreformer on Twitter

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Please explain the indoor tanning tax ,as that one is just a complete WTF

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Jegus Tapdancing Christo~! Makes me glad I'm not a tax accountant...

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Please explain the indoor tanning tax ,as that one is just a complete WTF

My guess would be that things which are potentially health hazards, like tanning booths are going to be taxed higher, just like cigarettes.

Jegus Tapdancing Christo~! Makes me glad I'm not a tax accountant...

LOL! I'm looking for a tapdancing tax thinking 'I don't remember no tapdancing tax' :clap:

Edited by OverSword

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It makes one want to give the unofficial "Roseanne Barr" salute when walking past an IRS office. (Grab crotch and spit)

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For all those that stated that Obamacare would not raise taxes, please step forward and receive your reward. Of course, when you do, you'll first blame Bush, then you'll try blaming the GOP in Congress for letting us go over the cliff. What more is it going to take to open your eyes? Oh but now the excuse is that we all need to sacrifice a little. We could have sacrificed a lot less if we just helped the 30 million that didn't have healthcare.

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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

So, I'm guessing that Blue Cross will drop it's percentage on medical hardware coverage to fix that issue .

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So, I'm guessing that Blue Cross will drop it's percentage on medical hardware coverage to fix that issue .

I believe that has more to do with the minimum reserves they are required to have for paying out claims. Most of the blues have wwwwaaaayyyyyyy more in reserve than they're required to which begs the question why do rates keep getting raised so much every year? Edited by OverSword
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I believe that has more to do with the minimum reserves they are required to have for paying out claims. Most of the blues have wwwwaaaayyyyyyy more in reserve than they're required to which begs the question why do rates keep getting raised so much every year?

The medical hardware coverage they give me right now is definitely not as good as the clinical coverage. That is the only reason I went with that train of thought.

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The medical hardware coverage they give me right now is definitely not as good as the clinical coverage. That is the only reason I went with that train of thought.

You may have been right, I'm just guessing (and me in the industry :innocent: )

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Wow low paid and taxed to dead

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hmmm... lets see excise on charitable hospitals:

Buried in Patient Protection and Affordable Care Act is a section entitled simply, "Additional Requirements For Charitable Hospitals." This section revokes a charitable hospital's tax-exempt status under section 501©(3) of the Internal Revenue Code of 1986 if the hospital fails to meet any of the following four specific requirements.

Source

Sounds clear

\1. Community health needs assessment. First, a charitable hospital must conduct a community health needs assessment once every three years (in the taxable year or in either of the two years preceding the taxable year) and must adopt an "implementation strategy to meet the community health needs identified" by the assessment.

Source

So, "charitable" hospitals offering boob jobs are going to have to pay the tax? sounds good to me.

2. Financial assistance policy. Second, the hospital must have a financial assistance policy that includes: (i) eligibility criteria for financial assistance, and whether the assistance includes free or discounted care; (ii) the basis for calculating amounts charged to patients; (iii) the method for applying for financial assistance; (iv) if the hospital does not have a separate billing and collections policy, the actions the hospital may take in the event of non-payment, including collections actions and reporting to credit agencies; and (v) measures to widely publicize the policy within the community to be served by the hospital

Source as above

So, Hospitals working for gain are not charitable anymore? I am shocked.

3. Limitations on charges. Third, the hospital must implement limitations on charges. The amounts charged by hospitals for emergency or other medically necessary care to patients eligible for assistance under the financial assistance policy must be limited to amounts that are not more than those charged to patients who have insurance, and hospitals are prohibited from "the use of gross charges."

Source as above

And hospitals who offer sweetheart deals to insurances but charge the full price to uninsured are loosing their charitable status? Whatever happened to our beloved socialism for the rich? This is really shocking.

I picked this point out of the list because it is something I researched lately, and given the result I am afraid that the rest of the list is similar BS.

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hmmm... lets see excise on charitable hospitals:

Sounds clear

So, "charitable" hospitals offering boob jobs are going to have to pay the tax? sounds good to me.

So, Hospitals working for gain are not charitable anymore? I am shocked.

And hospitals who offer sweetheart deals to insurances but charge the full price to uninsured are loosing their charitable status? Whatever happened to our beloved socialism for the rich? This is really shocking.

I picked this point out of the list because it is something I researched lately, and given the result I am afraid that the rest of the list is similar BS.

So you took the phrase excise tax on charitable hospitals, somehow decided that your internet search is more valid than and industry document, paraphrased the results you found into your own interpretation of those search results and decided the rest of the document must be BS.

OK :innocent: (smart)

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So you took the phrase excise tax on charitable hospitals, somehow decided that your internet search is more valid than and industry document, paraphrased the results you found into your own interpretation of those search results and decided the rest of the document must be BS.

OK :innocent: (smart)

Did you see on what website that article was published?

Very smart.

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how many of those taxes affect the average person in any measurable way? dang few. This is a lot of whining about nothing.

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how many of those taxes affect the average person in any measurable way? dang few. This is a lot of whining about nothing.

well wasnt it advertised there would be no tax hikes? (this coming from a canadian). but if this was the case, then there is something to whine about.

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how many of those taxes affect the average person in any measurable way? dang few. This is a lot of whining about nothing.

That's entirely inaccurate but one thing is for sure. There are a great many that affect the people in charge of our health and our jobs. There will be a trickle down effect.

well wasnt it advertised there would be no tax hikes? (this coming from a canadian). but if this was the case, then there is something to whine about.

ninjas reply above is going to be the new argument.

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There will be a trickle down effect.

That's entirely wrong - don't you know. Trickle down doesn't exist for a Socialist.

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#17 & #18, you're going to feel those ones.

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#17 & #18, you're going to feel those ones.

Yeah, those two are going to make things real interesting. With #17, it would be cheaper to take the penalty tax, then let Obamacare pick up the rest. Right now, I can't afford Obamacare without going broke. And with #18, how much you want to bet that employers with more than 50 employees will be setting their hours to part time. The new norm will be that everyone that can still find work will have at least two part-time jobs.

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how many of those taxes affect the average person in any measurable way? dang few. This is a lot of whining about nothing.

Almost everyone I know uses a HSA, and those are in like 5 of those taxes. Also many of the people I know have medical conditions that easily exceed that 7.5% threshhold for a tax credit, and now it will be 10%. Which is very likely to add up to several thousand dollars difference, and hundreds of dollars in tax rebate. Also I use Blueshield, so that is probably going up too.

Maybe those on unemployment, welfare, food stamps and social security will not be affected? But, many in the great masses of Tax Paying Citizens are going to feel the pinch of these taxes.

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well wasnt it advertised there would be no tax hikes?

certainly not. First, there was no advertiseing. Second, anyone that read the law or summaries about it knows about the taxes to fund it.

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There are a great many that affect the people in charge of our health and our jobs. There will be a trickle down effect.

really? And your track record on forecasting the future is what again?

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#17 & #18, you're going to feel those ones.

17 - this is an INCENTIVE to purchase health care insurance. You won't feel it if you do what most other Americans already do. Buy insurance.

18 - see answer above but for businesses.

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With #17, it would be cheaper to take the penalty tax, then let Obamacare pick up the rest.

Sorry. It doesn't work like that. So if you think that, you're going to be disappointed. And probably bankrupt. Buy insurance.

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