The Taxing Truth About Obamacare

THE TAXING TRUTH ABOUT OBAMACARE TAX 20 NEW OR HIGHER TAXES on American families and small businesses. $500 billion+ in tax hikes (over the next 10 years). $123 BILLION (January 2013) STOCKS Surtax on Investment Income BONDS New 3.8% SURTAX ON INVESTMENT INCOME earned in households making at least $250,000 ($200,000 single) 1 2 $86.8 BILLION (January 2013) Hike in Medicare Payroll Tax 2 CmCare paioga $65 BILLION* (January 2014) 3 Individual Mandate Excise Tax *Combined total with Employer Mandate Tax Starting in 2014, any individual NOT BUYING "qualifying" health insurance MUST PAY an income surtax according to the higher of the following: 3 ADULT 2014 1% AGI /S95 1% AGI /S190 1% AGI /$285 2015 2% AGI /$325 2% AGI/S650 2% AGI /$976 2016 2.5% AGI/S695 2.6% AGI/S1390 2.5% AGI / $2085 $65 BILLION* (January 2014) 4 Employer Mandate Tax *Combined total with Individual Mandate Excise Tax Beginning in 2015, an employer must offer coverage or pay a $2,000 PENALTY for each full-time employee. 5 APPLIES TO 50+ EMPLOYEES TAX PER EMPLOYEE WHEN EMPLOYER REQUIRES WAITING PERIOD FOR HEALTH COVERAGE 5 $60.1 BILLION (January 2014) Tax on Health Insurers Annual tax ON THE INDUSTRY IMPOSED relative to health insurance premiums collected that year INVOICE s60,1 BILLION 6 $32 BILLION (January 2018) Excise Tax on Comprehensive Health Insurance Plans NEW 40% EXCISE TAX On "Cadillac" health insurance $10,200/SINGLE $27,500/FAMILY Early retirees and high-risk professionals $11,500/SINGLE $29,450/FAMILY TAXES! CPI +1 percentage point indexed 40% Tax 7 $23.6 BILLION (2010) "Black Liquor"Tax Hike Tax increase on a type of BIO-FUEL $23.6 B 8 $22.2 BILLION (2010) Tax on Innovator Drug Companies $2.3 BILLION ANNUAL TAX on the industry imposed relative to share of sales made that year 10 s2a.a в per year a $20 BILLION (January 2013) Tax on Medical Device Manufacturers $10 BILLION 10 BILLION Medical device manufacturers EMPLOY 360,000 PEOPLE IN 6000 plants across the country. This law imposes a NEW 2.3% EXCISE TAX 11 10 $15.2 BILLION (January 2013) High Medical Bills Tax HOSPITAL BILL $$sss Taxpayers who face HIGH MEDICAL EXPENSES will only be allowed a DEDUCTION FOR EXPENSES to the extent they EXCEED 10% of adjusted gross income (AGI), up from 7.5%. 12 10% 7.5% 11 $13.2 BİLLION (January 2013) Flexible Spending Account Cap FSA CAP $2500 CONTRIBUTIONS TO FSAS ARE REDUCED to $2,500 from $5,000 per plan year. 13 12 $5 BILLION (January 2011) Medicine Cabinet Tax Purchase of Non-Prescription and over-the-counter medicines no longer allowed with: 14 $5B отс » Health Savings Accounts (HAS) » Flexible Spending Account (FSA) » Health Reimubrsement (HRA) pre-tax dollars $4.5 BILLION (January 2013) 13 Elimination of Tax for Employer-Provided Retirement Rx Drug Coverage in Coordination with Medicare Part D 15 %24.5 BILLION (2010) 14 Codification of the Economic Doctrine IRS CAN DISALLOW completely legal tax deductions and other tax-minimizing plans. 16 15 $2.7 BILLION (July 2010) Tax on Indoor Tanning Services 10% excise tax on Americans using INDOOR TANNING SALONS 17 16 $1.4 BILLION (January 2011) HSA Withdrawal Tax Hike 20% MORE TAXES Increases additional tax on NON-MEDICAL EARLY WITHDRAWALS FROM AN HAS from 10% to 20% 18 17 $0.6 BILLION (January 2013) $500,000 Annual Executive Compensation Limit for Health Insurance Executives 10 18 $0.4 BİLLION (2010) Blue Cross/Blue Shield Tax Hike BlueCross BlueShield Special tax deduction for Blue Cross/ Blue Shield companies allowed only if 85% OR MORE OF PREMIUM REVENUES are spent on clinical services. 20 85% $400,000,00o 19 S NEGLIGIBLE (2010) Excise Tax on Charitable Hospitals $50,000 PER HOSPITAL if they fail to meet new "community health assessment needs," "financial assistance," and "billing and collection" rules set by HHS 21 HOSPITAL 50.000 20 Ś NEGLIGIBLE (January 2012) Employer Reporting of Insurance on W-2 Preamble to taxing health benefits on INDIVIDUAL TAX RETURNS 22 Bill References and Exemptions: 1 Reconciliation Act, Page: 87-93 11 Exempts items retailing for <$100. PPACA, Page: 1,980-1,986 2 PPACA, Reconciliation Act, Page: 2000-2003; 87-93 12 Taxpayers ages 65+ can still use the old 7.5% threshold in 2013-2016 only. PPACA, Page: 1,994-1,995 3 Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS). PPACA, Page: 317-337 13 PPACA, Page: 2,388-2,389 14 PPACA, Page: 1,957-1,959 15 PPACA, Page: 1,994 4 Applies only if at least one full-time employee receives a premium tax credit or cost-sharing reductions. If any employee actually receives coverage through the exchange, the penaity on the employer for that employee rises to $3000. PPACA, Page: 345-346 16 Applies if the IRS deems that the action lacks "substance" and is merely intended to reduce taxes owed. Reconciliation Act, Page: 108-113 17 PPACA, Page: 2,397-2,399 5 Not counting the first 30 employees 6 Phases in gradualy until 2018. Fully-imposed on firms with $50 million in profits. 9 PPACA, Page: 1,986-1,993 18 This disadvantages them relative to IRAS and other tax-advantaged accounts, which remain at 10%. PPACA, Page: 1,959 7 PPACA, Page: 1,941-1,956 8 An unusually expensive health insurance plan that that carries premiums higher than 38,000 for individuals or $21,000 for families. 19 PPACA, Page: 1,995-2,000 20 PPACA, Page: 2,004 21 PPACA, Page: 1,961-1,971 22 PPACA, Page: 1,957 9 Reconciliation Act, Page: 105 10 PPACA, Page: 1,971-1,980 BROUGHT TO YOU BY www.iCanbenefit.com iCan SM Resources http://www.atr.org/full-list-obamacare-tax-hikes-listed-a701O#ixzz1zTXuZUYI http://blog.heritage.org/2012/08/20/obamacares-18-new-tax-hikes/ http://www.bbdcpa.com/articles/tax-provisions-in-new-patient-protection-and-affordable-care-act/ %24 30-60 DAYS 60+ DAYS %24 200