The controversial Patient Protection and Affordable Care Act, also known as Obamacare, will raise taxes in at least 20 new categories, so says the Americans for Tax Reform on their website. Below is a list of all new taxes and where to find them in the bill itself.
Surtax on Investment Income – $123 billion.
Starting in January of 2013, this tax will be on investment income on households making $250,000 a year or more. The effect of this will be to raise the tax on investment income from 15% to 23.8%. Other earned income subject to the surtax is gross income from interest, annuities, royalties, net rents, and passive income in partnerships. (pages 87-93)
Medicare Payroll Tax Increase – $86 billion.
This increase will be for families earning $250,000 and more. (pages 87-93)
Individual Mandate Excise Tax and Employer Mandate Tax – $64 billion.
Individuals who choose not to purchase health insurance will be charged 1% of AGI in 2014, 2% of AGI in 2015, and 2.5% of AGI in 2016. There are exemptions for religious objectors, undocumented immigrants, those earning less than the poverty line, members of Native American Tribes, and hardship cases as determined by HHS.
Employers with more than 50 employees who do not offer insurance to employees who qualify for health tax credits will also pay a penalty per employee. (pages 345-6)
Tax on Health Insurers – $60.1 Billion (Takes effect Jan. 2014):
Annual tax on the industry imposed relative to health insurance premiums collected that year. (Pages 1,986-1,993)
Excise Tax on Comprehensive Health Insurance Plans – $32 Billion (Takes effect Jan. 2018):
Starting in 2018, new 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family). (Pages: 1,941-1,956)
“Black liquor” tax hike – $23.6 Billion (Took effect in 2010)
Bio fuel tax increase. Bill: (Page: 105)
Tax on Innovator Drug Companies – $22.2 Billion (Took effect in 2010)
$2.3 billion annual tax on the industry imposed relative to share of sales made that year. (Pages 1,971-1,980)
Tax on Medical Device Manufacturers – $20 Billion (Takes effect Jan. 2013)
2.3% excise tax on medical device manufacturers. Items retailing less than $100 exempted.
High Medical Bills Tax – $15.2 Billion (Takes effect Jan 1. 2013)
Those with high medical expenses must have those expenses exceed 10% of AGI before tax deductions allowed. Currently this is set to 7.5%. (Pages 1,994-1,995):
Flexible Spending Account Cap – aka “Special Needs Kids Tax” – $13.2 Billion (Takes effect Jan. 2013)
Imposes cap on FSAs of $2500 (now unlimited). Indexed to inflation after 2013. (Pages 2,388-2,389)
Medicine Cabinet Tax – $5 Billion (Took effect Jan. 2011)
Americans will no longer be able to use health savings accounts (HSAs), or flexible spending accounts (FSAs), or health reimbursement pre-tax dollars for over the counter drugs. (Pages 1,957-1,959)
Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D – $4.5 Billion(Takes effect Jan. 2013) (Page 1,994)
Codification of the “economic substance doctrine” – $4.5 Billion (Took effect in 2010)
The IRS will not allow certain legal tax deductions and tax minimizing plans if they deem the action lacks substance and is merely intended to reduce taxes owed. (Pages 108-113)
Tax on Indoor Tanning Services – $2.7 Billion (Took effect July 1, 2010) (Pages 2,397-2,399)
HSA Withdrawal Tax Hike – $1.4 Billion (Took effect Jan. 2011)
Increases penalties on non-medical early withdrawals from an HSA to 20%, currently at 10%. (Page 1,959)
$500,000 Annual Executive Compensation Limit for Health Insurance Executives – $0.6 Billion (Takes effect Jan. 2013) (Pages 1,995-2,000)
Blue Cross/Blue Shield Tax Hike – $0.4 Billion (Took effect in 2010)
The BCBS tax deduction only allowed if 85% or greater of premium revenues are spent on clinical services. (Page 2,004)
Excise Tax on Charitable Hospitals (Took effect in 2010)
$50,000 per hospital if they fail to meet new “community health assessment needs,” “financial assistance,” and “billing and collection” rules set by HHS. (Pages 1,961-1,971)
Employer Reporting of Insurance on W-2 (Took effect in Jan. 2012) (Page 1,957)