20 Hidden Tax Hikes in Obamacare

Friday, 29 Jun 2012 11:43 AM

By Grover Norquist

From the ATR website.

The 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.

Taxes 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. Raise "Haircut" for Medical Itemized
Deduction from 7.5% to 10% of AGI ($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

Grover Norquist is president of Americans for Tax
Reform, a coalition of taxpayer groups, individuals, and businesses opposed to
higher taxes at the federal, state, and local levels. The coalition organizes
the Taxpayer Protection Pledge, which asks all candidates for federal and state
office to commit themselves in writing to oppose all tax increases. Read more
reports from Grover Norquist — Click Here
Now.


Read more on Newsmax.com: 20
Hidden Tax Hikes in Obamacare
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