How Does the Reid-Obama Health Bill
Raise Taxes on Your Current Health Plan?

From Ryan Ellis on Thursday, November 19, 2009 6:23 PM

Many people have heard that the Reid-Obama government healthcare bill will raise taxes. What you might not realize is that many of the tax hikes raise taxes on the health insurance you already have today—endangering the health security of you and your family. Here’s how:

Excise Tax on Comprehensive Health Insurance Plans (Page 1979/Sec. 9001/$149.1 bil): Starting in 2013, new 40 percent excise tax on “Cadillac” health insurance plans ($8500 single/$23,000 family). Higher threshold ($9850 single/$26,000 family) for early retirees and high-risk professions. CPI +1 percentage point indexed. From 2013-2015, the 17 highest-cost states are 120% of this level.

Employer Reporting of Health Insurance Costs on W-2 (Page 1996/Sec. 9002/Min$): Preamble to taxing health benefits on individual tax returns.

Medicine Cabinet Tax (Page 1997/Sec. 9003/$5 bil): No longer allowable to use health savings account (HSA), flexible spending account (FSA), or health reimbursement arrangement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin)

HSA Withdrawal Tax Hike (Page 1998/Sec. 9004/$1.3 bil): 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.

FSA Cap (“Special Needs Children Tax”) (Page 1999/Sec. 9005/$14.6 bil): Imposes cap on FSAs of $2500 (now unlimited). Will most hurt families of special-needs children, who tend to use outsized FSA deferrals.

Tax on Innovator Medicine Companies (“Miracle Cures Tax”) (Page 2010/Sec. 9008/$22.2 bil): $2.3 billion annual tax on the industry imposed relative to share of sales made that year.

Tax on Medical Devices Like Prosthetic Limbs, Wheelchairs, and Pacemakers (Page 2020/Sec. 9009/$19.3 bil): $2 billion annual tax on the industry imposed relative to shares of sales made that year. Exempts items retailing for <$100.

Tax on Health Insurance Premiums (Page 2026/Sec. 9010/$60.4 bil): $6.7 billion annual tax on the industry imposed relative to health insurance premiums collected that year.

Eliminate tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D (“Retiree Rx Tax”) (Page 2034/Sec. 9012/$5.4 bil). Will make employer-provided Rx coverage for retirees less available.

Raise “Haircut” for Medical Itemized Deduction from 7.5% to 10% of AGI (Page 2034/Sec. 9013/$15.2 bil): Waived for 65+ taxpayers in 2013-2016 only. Will make it more difficult for working families to deduct medical expenses on their tax return.

Tax on Cosmetic Medical Procedures (“Botox Tax”) (Page 2045/Sec. 9017/$5.8 bil): New 5% excise tax on elective cosmetic surgery to be paid by the surgery patient

PDF Version

Permalink | Email | Print | Tags: HEALTHCARE

Comments

All i can say is that its a good idea for the bill , but taxes should stay even , NOT GO UP!!obama should try to find a way to keep America without contradictions
>> Cristian Rodriguez Thursday, November 19, 2009 7:25 PM Report Comment

Isn't it discriminatory to single out corporations based on their "industry" type and impose taxes that no other corporation or industry has to pay? We have established IRS guidelines for corporations. How can the Federal Government impose a pre-determined annual tax? Shouldn't this be illegal? Why aren't those industries screaming bloody murder over this? Seriously, can someone answer to the legality of this?
>> R. Foster Friday, November 20, 2009 9:43 AM Report Comment

It appears that all the Democrat understand is TAX TAX and More TAX. If the Government would stop spending spending and let existing Medical system stand with some minor changes this Country would start climbing out of most of our financial problems and stay where we were. It seems that most all of the appointed Party governmenmt members get very high paying jobs which adds to the cost of our government.haven't seen any improvements except more RED TAPE,MORE COSTS, and more complicated procedures only to confuse Americans,particulary OLDER Americans. Remember, you will be OLD some day and your policies will (I hope)will apply to you some day.
>> Raymond Coultas Friday, November 20, 2009 3:00 PM Report Comment

What ever happened to the 14th Amendment that gives every individual equal protection under the law? Why does Congress continually disobey this Amendment? Progressive tax systems are unconstitutional yet we practice progressive taxation. Singling out a group and taxing them is also unconstitutional. We need to vote these congress people out of office. Better yet-- stop paying any taxes to the government until the government starts obeying the Constitution. That will be the wake up call for the lunatics in Washington.
>> KATHLEEN Monday, November 23, 2009 12:46 AM Report Comment

I cannot understand how a intelligent person could vote for a bill like the Obama Healcare bill when they admit things are in it that they cannot vote for. How can a Senate go through 2000 pages of nonsense and expect to change it. Seems to me it would be easier to vote it down and send it back to a Democrat/Republican Joint Committee to write a new bill? I know that 3 million dollars to a Senators State Medicare would be enough to buy her vote but what else did these crooks get??? I forgot............ that would be democracy!!
>> Levoid Davis Monday, November 23, 2009 1:29 AM Report Comment

Already I have had a retired, 79 year old aunt living on a budget who recieved a notice from her insurance company today that her insurance will increase from $256 a month to $498 a month because of Obamacare tax increases. Her husband's insurance went up to close the same amount. The bottom line is if you raise taxes on any industry they will pass those costs down to their consumers. This bill will raise every tax bracket's taxes. Imagine all that money going towards paying a family's utilities, grocery, or mortgage bills instead. So much for Obama's promise of not raising taxes on anyone making less than $250,000 a year.
>> Todd Monday, April 5, 2010 9:27 PM Report Comment

Email this Page
Name
Email Address
Friends' Name
Friends' Email

Email this Page

How Does the Reid-Obama Health Bill Raise Taxes on Your Current Health Plan?

Comments

Add a Comment

How Does the Reid-Obama Health Bill
Raise Taxes on Your Current Health Plan?