ObamaCare Tax Increases (July 2, 2012) about 16 of them and especially ONE that HITS PEOPLE WHO CARE FOR SPECIAL NEEDS CHILDREN (see #9).  …This is what YOU WANTED????

http://www.doctorsandpatients.org/blog/96-full-list-of-ppaca-tax-hikes

http://s3.amazonaws.com/atrfiles/files/files/obamacare%20tax%20hikes.pdf

 SUMMARY:

1) $123 Billion: Surtax on Investment Income (Takes effect Jan. 2013)

• Bill: Reconciliation Act; Page: 87-93)
• This will hit the middle-class along with retiree’s.

2) $86 Billion: Hike in Medicare Payroll Tax (Takes effect Jan. 2013)

• Bill: PPACA, Reconciliation Act; Page: 2000-2003; 87-93
• This will hit the middle-class via the payroll taxes.

3) $65 Billion: Individual Mandate Excise Tax and Employer Mandate Tax (Both taxes take effect Jan. 2014

• Bill: PPACA; Page: 317-337
• This will the hit the middle-class more than any other income bracket $11,800 to $59,000 per year per the CBO.

4) $60.1 Billion: Tax on Health Insurers (Takes effect Jan. 2014)

• Bill: PPACA; Page: 1,986-1,993
• We are already seeing insurance premiums rise.

5) $32 Billion: Excise Tax on Comprehensive Health Insurance Plans (Takes effect Jan. 2018)

• Bill: PPACA; Page: 1,941-1,956
• Drop, or Pass On the costs…

6) $23.6 Billion: “Black liquor” tax hike (Took effect in 2010) This is a tax increase on a type of bio-fuel.

• Bill: Reconciliation Act; Page: 105
• Increase in any type of fuel effects how goods get to market… The middle class gets hit.

7) $22.2 Billion: Tax on Innovator Drug Companies (Took effect in 2010)

• Bill: PPACA; Page: 1,971-1,980
• Cost pass through to consumers and insurers and ultimately the insured via higher premiums.

8) $20 Billion: Tax on Medical Device Manufacturers (Takes effect Jan. 2013)

• Bill: PPACA; Page: 1,980-1,986
• Manufactures will not expand their businesses (hire) and/or pass on the costs to the consumers, the insurers and eventually the insured through higher premiums.

9) $13.2 Billion: Flexible Spending Account Cap – aka “Special Needs Kids Tax” (Takes effect Jan. 2013)

• Bill: PPACA; Page: 2,388-2,389
• Increases tax liability and increases the cost of taking care of special needs kids (which is VERY expensive).

10) $5 Billion: Medicine Cabinet Tax (Took effect Jan. 2011)

• Bill: PPACA; Page: 1,957-1,959
• Increase in taxes and costs to the middle class since they cannot us a health saving account to purchase OverTheCounter medications.

11) $4.5 Billion: Elimination of tax deduction for employer-provided retirement Rx drug coverage.

• Bill: PPACA; Page: 1,994
• Increases costs to businesses with good benefits.

12) $4.5 Billion: Codification of the “economic substance doctrine” (Took effect in 2010)

• Bill: Reconciliation Act; Page: 108-113
• The IRS can refuse to allow deductions it deems “not of substance”. (Whatever that means).

13) $2.7 Billion: Tax on Indoor Tanning Services (Took effect July 1, 2010):

• Bill: PPACA; Page: 2,397-2,399
• Just being passed onto consumer – the middle-class mainly.

14) $1.4 Billion: HSA Withdrawal Tax Hike (Took effect Jan. 2011)

• Bill: PPACA; Page: 1,959
• Non-Medical withdrawals are taxed at 20% not 10%. This hits the middle-class.

15) $0.6 Billion: $500,000 Annual Executive Compensation Limit for Health Insurance Executives (Takes effect Jan. 2013)

• Bill: PPACA; Page: 1,995-2,000
• Just passed onto consumers.

16) $0.4 Billion: Blue Cross/Blue Shield Tax Hike (Took effect in 2010)

• Bill: PPACA; Page: 2,004
• This cost is being passed onto consumer (policy holders).

---------------MORE Detailed Descriptions:

1)

$123 Billion: Surtax on Investment Income (Takes effect Jan. 2013): 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)

2012:

Capital Gains: 15%

Dividends: 15%

Other: 35% *

2013:

Capital Gains: 23.8%

Dividends: 23.8% (that includes Retirees)

Other: 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. (Bill: Reconciliation Act; Page: 87-93)

2)

$86 Billion: Hike in Medicare Payroll Tax (Takes effect Jan. 2013):

Bill: PPACA, Reconciliation Act; Page: 2000-2003; 87-93

Current law and changes:

Current:

First $200,000

($250,000 Married)

Employer/Employee

1.45%/1.45%

2.9% self-employed

All Remaining Wages

Employer/Employee

1.45%/1.45%

2.9% self-employed   <--- This is most people

ObamaCare:

First $200,000

($250,000 Married)

Employer/Employee

1.45%/1.45%

2.9% self-employed

All Remaining Wages

Employer/Employee

1.45%/2.35%

3.8% self-employed <--- This is most people

3)

$65 Billion: Individual Mandate Excise Tax and Employer Mandate Tax (Both taxes take effect Jan. 2014

Bill: PPACA; Page: 317-337

--The personal mandate penalty (2.5% TAX) going to hit the SQUARELY in the MIDDLE CLASS.

The Income Ranges most widely hit by ObamaCare's Mandate Tax Penalty will be those making between $11,800 to $59,000 per year.

See Page 73 Chart - PDF page 81

https://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/120xx/doc12033/12-23-selectedhealthcarepublications.pdf

4)

$60.1 Billion: Tax on Health Insurers (Takes effect 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

--This is being passed on to policy holders**

5)

$32 Billion: Excise Tax on Comprehensive Health Insurance Plans (Takes effect 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

--This is being passed on to policy holders or employees**

** Average Annual Premiums for Family Health Benefits Top $15,000 in 2011, [UP 9 Percent],

Substantially More than the Growth in Worker’s Wages, Benchmark Employer Survey.

http://www.kff.org/insurance/092311nr.cfm

http://ehbs.kff.org/pdf/2011/8225.pdf

Pg 88

The overall impact on employment would probably be muted, however, because employers would be expected to pass the costs of such fees on to workers in the form of lower wages than would otherwise be paid—just as the costs paid by employers for health insurance are generally passed on to workers. Because the requirement would not be instituted until 2013, employers would be able to plan for its implementation; CBO also projects.

https://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/120xx/doc12033/12-23-selectedhealthcarepublications.pdf

EMPLOYMENT

Jan 2009: 65.7%

Sept 2012: 63.6%

The employment participation rate only went up .1%

(that's 1/10 of percent)

THE MOST PEOPLE HIRED were PART-TIME...66% of the hired workers were PART-TIME.....

63.5% to 63.6%

http://data.bls.gov/timeseries/LNS11300000/

--873,000 of those jobs "created" were the House Survey-a mathematical projections.

"Turning to measures from the survey of households, the unemployment rate decreased by 0.3 percentage point to 7.8 percent in September....Total employment, as measured by the household survey, rose by 873,000 in September,"

http://www.bls.gov/news.release/archives/jec_10052012.htm

However if you look here:

http://www.bls.gov/news.release/empsit.t15.htm

---------The unemployment rate is UNCHANGED.

August 2012: 14.7%

Sept 2012: 14.7%

THE MOST PEOPLE HIRED were PART-TIME...66% of the hired workers were PART-TIME.....

...Of the numbers that were hired MOST were PART-TIME.

"Among the employed, the number of involuntary part time

workers increased by 582,000 to 8.6 million in September."

http://www.bls.gov/news.release/archives/jec_10052012.htm

----What is happening is SEASONAL PART-TIME HIRING...and to the most part people dropping of the Unemployment Rate due to exhaustion of their UI benefits.

6)

$23.6 Billion: “Black liquor” tax hike (Took effect in 2010) This is a tax increase on a type of bio-fuel. Bill: Reconciliation Act; Page: 105

Increase in any type of fuel effects how goods get to market… The middle class gets hit.

7)

These costs are passed on to YOU, THE PATIENT….

$22.2 Billion: Tax on Innovator Drug Companies (Took effect in 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

8)

IF device makers continue to be in business the increased cost is passed on to YOU, THE PATIENT….

$20 Billion: Tax on Medical Device Manufacturers (Takes effect 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

“Cook Medical shelves Midwest expansion plans”

http://www.ibj.com/cook-medical-shelves-midwest-expansion-plans/PARAMS/article/35735

“Consider the effect on Indiana-based Cook Medical Inc., which estimates it will have to pay between $20 million and $30 million a year in new taxes. It has announced that because of those new expenses it is canceling plans to build five plants in the Midwest.”

http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20120801/EDITORIAL/120739906

“Obamacare's Medical-Device Tax Kills Patients, Not Just Jobs”

http://www.forbes.com/sites/aroy/2012/06/06/obamacares-medical-device-tax-kills-patients-not-just-jobs/

“When 400 American medical device CEOs sent a July 2011 letter (below) to both branches of Congress, only 175 State Representatives favored repeal. Now 229 favor repeal ... enough to pass the House ... but the Senate needs to hear from you!”

http://www.no2point3.com/petition

“Obamacare Will Stifle Healthcare Innovation, Making It A Real Pain”

http://www.forbes.com/sites/billflax/2012/10/09/obamacare-will-stifle-healthcare-innovation-making-it-a-real-pain/

9)

THIS lack of deductibility hits the MIDDLE CLASS………

$13.2 Billion: Flexible Spending Account Cap – aka “Special Needs Kids Tax” (Takes effect 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. (http://ncrcpreschool.org/page.php?pid=11" title="http://ncrcpreschool.org/page.php?pid=11http://ncrcpreschool.org/page.php?pid=11">http://ncrcpreschool.org/page.php?pid=11http://ncrcpreschool.org/page.php?pid=11">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

10)

$5 Billion: Medicine Cabinet Tax (Took effect 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

Increase in taxes and costs to the middle class since they cannot us a health saving account to purchase OverTheCounter medications.

11)

$4.5 Billion: Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D (Takes effect Jan. 2013)

Bill: PPACA; Page: 1,994

The increase in costs to do business is passed on to consumers.

12)

$4.5 Billion: Codification of the “economic substance doctrine” (Took effect in 2010): 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

13)

$2.7 Billion: Tax on Indoor Tanning Services (Took effect July 1, 2010): New 10 percent excise tax on Americans using indoor tanning salons.

Bill: PPACA; Page: 2,397-2,399

This is passed on to consumers.

14)

$1.4 Billion: HSA Withdrawal Tax Hike (Took effect 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

15)

$0.6 Billion: $500,000 Annual Executive Compensation Limit for Health Insurance Executives (Takes effect Jan. 2013):

Bill: PPACA; Page: 1,995-2,000

This will be passed on to the consumers.

16)

$0.4 Billion: Blue Cross/Blue Shield Tax Hike (Took effect in 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

This will be passed on to the consumers…and is currently being passed on. Insurance premiums have risen at least 9%.