13 New Taxes in ObamaCare!

30 10 2009


Happy Halloween bkeyser

By the masterful GiovanniWorld member bkeyser!

Ryan Ellis, of Americans for Tax Reform (ATR), has undertaken the Herculean task of going through all 1,990 pages of the House’s juggernaut ObamaCare bill:  H.R. 3962, the “Affordable [sic] Health Care for America Act” and determined that it contains 13 new tax hikes!

Here they are, with page numbers from the pdf version of HR 3962:

  1. Employer Mandate Excise Tax (Page 275): If an employer does not pay 72.5 percent of a single employee’s health premium (65 percent of a family employee), the employer must pay an excise tax equal to 8 percent of average wages.  Small employers (measured by payroll size) have smaller payroll tax rates of 0 percent (<$500,000), 2 percent ($500,000-$585,000), 4 percent ($585,000-$670,000), and 6 percent ($670,000-$750,000).
  2. Individual Mandate Surtax (Page 296): If an individual fails to obtain qualifying coverage, he must pay an income surtax equal to the lesser of 2.5 percent of modified adjusted gross income (MAGI) or the average premium.  MAGI adds back in the foreign earned income exclusion and municipal bond interest.
  3. Medicine Cabinet Tax (Page 324): Non-prescription medications would no longer be able to be purchased from health savings accounts (HSAs), flexible spending accounts (FSAs), or health reimbursement arrangements (HRAs).  Insulin excepted.
  4. Cap on FSAs (Page 325): FSAs would face an annual cap of $2500 (currently uncapped).
  5. Increased Additional Tax on Non-Qualified HSA Distributions (Page 326): Non-qualified distributions from HSAs would face an additional tax of 20 percent (current law is 10 percent).  This disadvantages HSAs relative to other tax-free accounts (e.g. IRAs, 401(k)s, 529 plans, etc.)
  6. Denial of Tax Deduction for Employer Health Plans Coordinating with Medicare Part D (Page 327): This would further erode private sector participation in delivery of Medicare services.
  7. Surtax on Individuals and Small Businesses (Page 336): Imposes an income surtax of 5.4 percent on MAGI over $500,000 ($1 million married filing jointly).  MAGI adds back in the itemized deduction for margin loan interest.  This would raise the top marginal tax rate in 2011 from 39.6 percent under current law to 45 percent—a new effective top rate.
  8. Excise Tax on Medical Devices (Page 339): Imposes a new excise tax on medical device manufacturers equal to 2.5 percent of the wholesale price.  It excludes retail sales and unspecified medical devices sold to the general public.
  9. Corporate 1099-MISC Information Reporting (Page 344): Requires that 1099-MISC forms be issued to corporations as well as persons for trade or business payments.  Current law limits to just persons for small business compliance complexity reasons.  Also expands reporting to exchanges of property.
  10. Delay in Worldwide Allocation of Interest (Page 345): Delays for nine years the worldwide allocation of interest, a corporate tax relief provision from the American Jobs Creation Act
  11. Limitation on Tax Treaty Benefits for Certain Payments (Page 346): Increases taxes on U.S. employers with overseas operations looking to avoid double taxation of earnings.
  12. Codification of the “Economic Substance Doctrine” (Page 349): Empowers the IRS to disallow a perfectly legal tax deduction or other tax relief merely because the IRS deems that the motive of the taxpayer was not primarily business-related.
  13. Application of “More Likely Than Not” Rule (Page 357): Publicly-traded partnerships and corporations with annual gross receipts in excess of $100 million have raised standards on penalties.  If there is a tax underpayment by these taxpayers, they must be able to prove that the estimated tax paid would have more likely than not been sufficient to cover final tax liability.





11 responses

31 10 2009

First it was 1000 pages…then 1500…now 1900 Just how in the hell do these people fill so many pages. I mentioned yesterday thet the bill for The Eisenhower interstae highway system was all of 26 pages……….what have we become…………..Groan……….And where the hell are the tree huggers when ya need them. they should be protesting up a storm for all these poor trees they gotta kill for this monstrocity.

31 10 2009

This is what it’s gonna look like: http://www.flickr.com/photos/sgtkey0811/4060436181/sizes/l/

Happy Halloween all! Be safe! -Bob

31 10 2009

Wicked Kule…………..nice Holloween touch

31 10 2009

Bas@ards, all of them. This bill is all about control and taxes…from what I understand, the taxes go into effect immediately but the universal health care benefits don’t go into effect until 2013 will full implementation in 2019. John Galt is calling…

19 11 2009
Timothy Proctor

While it is quite likely that the measures being proposed in this beill actually would decrease the price of health insurance of a large portion of America, it seems that it won’t measure out to any really savings in the end. If you look at America as a whole, the same amount of money will be coming out of our pockets, however it would not longer be in insurance premiums, but rather in taxes. So my questions is, why is it bad if the insurance companies make a grab for this money, and not bad when the government does. My analysis is the overall the cost of health insurance wont really go down, it will just be shifted around a bit, and sent to a new person, the government

19 11 2009

Any cost savings this bill may provide will be very temporary. Name all the government programs that have decreased in cost?

Health Insurance would go down if government, state and federal, lifted restrictions so all 1,300 insurance companies could compete across state lines. This would also stop insurance companies from bribing our state and federal politicians. One other area that would help is tort reform. It’s not just the cost of the doctors mal-practice insurance, the real cost is when out of fear of being sued, the doctor orders more expensive tests than is required so if he does get sued he can point to how thourough he was in treating the patient. This cycle has to be broken.

The savings would make the government takeover completely unecessary!


19 11 2009

Timothy P,

Were you born yesterday?

Even if we assume that you are right — that those who now have health insurance will not actually pay more if Obamacare becomes law, only the recipients of our money will switch from those dastardly private insurance companies to our wonderful government — off the top of my head, I can think of TWO good reasons to oppose Obamacare:

1. It will grow Big Govt even bigger, creating some 111 new agencies/bureaucracies. You have heard of that dictum that a bureaucracy’s main imperative is to ensure its own survival and expansion, right? As Gio asked you, please name one federal govt bureaucracy that was installed and then just went away (not renamed or morphed into some other name)?

2. Surely you are not so naive as to think that the present version of Obamacare will remain the final version? If this passes, it will be a foot in the door. Once it becomes law — and spawned new govt bureaucracies, salaried bureaucrats, millions of new SEIU members, millions more of “entitled” recipients of free health care — do you really think the new mobs of people now dependent on Obamacare for their livelihood and healthcare will just go away? No, instead Obamacare will grow larger and larger, like a snowball rolling downhill accruing tons of dirt and debris.

Don’t believe me? Just look at the history of Social Security and Medicare, both of which grew far beyond their original configurations (recall Bush’s Medicare prescription meds?). Both are also imminently insolvent.

19 11 2009

Timothy Proctologist………Um did you know( i doubt it since facts tend to get in the way) that the cost projections for the health plan that you keep seeing over 10 yrs…….Well that only pays for 5 years of service………hmmm wonder where there gonna get the money for the other 5 yrs and wonder why nobody talks about this part…………..Tim baby……….get your self some edjumacation on a subject before you go spouting you socialist party line, which if you need a History lesson as well has never worked in the annals of history………and what ..you are going to be the one to do it. There is just so much wrong with ……..basically everything you stand for and quite frankly you………………………….

19 11 2009

I just heard on Beck another tax they found is going to be specifically on Blue Cross/Blue Shield….just friggin’ great.

One toe in this door is going to be the end of this country as we knew it in so many ways.

My doctor has already retired, we talked politics over the last two years…it breaks my heart, this is just a small part of what all will happen, let alone wonderful alternatives and cures, new innovation etc the have and are discovering for diseases…these will be cut or stopped.

Call your Senators…they are going to be voting to continue debate on this Sat. evening last I heard…but it will be Sat. then all Dear Leader Reid will need is 51 votes to pass the bill…Coburn wants all the 2000 plus page read, but that won’t stop them….we have to…if possible.


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