Full List of Obamacare Tax
Hikes
Americans for Tax Reform – Ryan
Ellis and John Kartch – 6/28/2012
4-page PDF of the same info
above
Obamacare law contains 20 new or higher taxes on American families and
small businesses and the President’s healthcare
law is one of the largest tax increases in American
history.
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. Click either link above for the quick explanation of each new
tax.
Taxes that took effect in 2010:
1. Excise Tax on Charitable Hospitals
2. Codification of the “economic substance
doctrine”
3. “Black liquor” tax hike
4. Tax on Innovator Drug Companies
5. Blue Cross/Blue Shield Tax Hike
6. Tax on Indoor Tanning Services
Taxes that took effect in 2011:
7. Medicine Cabinet Tax
8. HSA Withdrawal Tax Hike
Tax that took effect in 2012:
9. Employer Reporting of Insurance on
W-2
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
13. High Medical Bills Tax 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”
15. Elimination of tax deduction for employer-provided retirement Rx
drug coverage in coordination with Medicare Part
D
16. $500,000 Annual Executive Compensation Limit for Health Insurance
Executives
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
19. Tax on Health Insurers
Taxes that take effect in 2018:
20. Excise Tax on Comprehensive Health Insurance
Plans