Britannia Radio

Rarely seen list of new taxes to be imposed by Obamacare

Friday, July 6, 2012 9:29 AM

It has been very very difficult to get a list of new taxes imposed on Americans by Obamacare. Some affect the “wealthy” and most affect the Middle class, PLUS, there is no estimate of the quantity of government employees to be hired to monitor, collect, write regulations, etc. Heard that the IRS will need to hire 16,000 new IRS agents. Suspect this is true.

Here is an abbreviated list of taxes on families and businesses introduced by the Patient Protection and Affordable Care Act (PPACA), known as Obamacare, totalling more than $500 billion over the next ten years as prepared by the Americans for Tax Reform:

( I don’t think this is list is all inclusive. I seem to remember an additional tax if one were to sell his/her home at a profit, having lived in it for decades and finding a hoped for large gain. Puts one in the “high” bracket.)

Excise taxes on charitable hospitals ($50,000 per hospital if they do not meet HHS criteria of “community health assessment needs,” billing and collection,” and “financial assistance” (PPACA, 2010, pp. 1,961-1,971) (Additional bookkeeping and reporting requirements are costly)
Codify “economic substance doctrine” (IRS will not allow any legal deductions or tax-minimizing plans because it lacks “substance” and is intended to reduce taxes owed); this is a tax increase of $4.5 billion (Bill Reconciliation Act, 2010, pp. 108-113)
“Black liquor” tax on a special bio-fuel (Bill Reconciliation Act, 2010, p. 105)
Tax on innovating drug companies (PPACA, 2010, p. 1,971-1,980)
Blue Cross/Blue Shield Tax Increase (PPACA, 2010, p. 2,004)
Ten percent tax on indoor tanning (PPACA, 2010, pp. 2,397-2,399)
Medicine cabinet tax disallows Americans to use health savings accounts, flexible spending accounts, or health reimbursement pre-tax money to buy over the counter medicines except insulin (PPACA, 2011, pp. 1,957-1,959
HSA Withdrawal tax hike from 10 to 20 percent (PPACA, 2011, p. 1,959
Employer reporting of insurance on W-2 forms, taxing health benefits on individual tax returns (PPACA, 2012, p. 1,957)

Surtax on investment income for families that make at least $250,000 or $200,00 single (Bill Reconciliation Act, 2013, pp. 87-93) (Is sale of a private home at a profit considered investment income?)
Medicare payroll tax increase (PPACA, Reconciliation Act, 2013, pp. 2,000-2,003, pp. 87-93)

A 2.3 percent excise tax on medical device manufacturers (PPACA, 2013, pp. 1,980-1,986)
Medical expenses can be itemized if they exceed 10 percent, no longer the previous 7.5 percent, resulting in fewer people being able to itemize (PPACA, 2013, pp. 1,994-1,995
Flexible spending account cap of $2,500 which is now unlimited (PPACA, 2013, pp. 2,388-2,389)

Eliminate tax deductions for employer-provided retirement prescription drug coverage in coordination with Medicare Part D (PPACA, 2013, p. 1,994)
Limit of $500,000 annual executive compensation for health insurance executives (PPACA, 2013, pp. 1,995-2,000)

Individual mandate excise tax starting in 2014 if a person does not buy a “qualifying” health insurance, 1 percent in 2014, 2 percent in 2015, 2.5 percent in 2016; exempted are hardship cases as determined by HHS, religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes (PPACA, 2014, pp. 317-337)

Employer mandated tax, non-deductible of $2,000 per employee if the employer does not offer health coverage and at least one employee qualifies for a health tax credit; if an employee receives coverage through the government exchange, the employer penalty for that employee increases to $3,000 (PPACA, 2014, pp. 345-346)

Tax on health insurers based on premiums collected per year (PPACA, 2014, pp. 1,986-1,993 (this all but forces employers to stop offering insurance, forcing their employees onto the government exchanges)
40 percent excise tax on comprehensive health insurance plans or “Cadillac plans” (PPACA, 2018, pp. 1,941-1,956)

In addition:

 

The White House has threatened to veto the Defense Appropriation Bill if it did not include increases in Tricare insurance premiums and increased medical fees for the military as part of the $500 million reduction in spending.

The Obama administration would like to persuade the military to switch over to the government health care exchanges by offering cheaper rates than Tricare. Exchange fees will be cheaper temporarily - they will go up once everybody is enrolled. Our president wants every American dependent on the government for their existence.