Full List of Tax Hikes In Senate Democrat Health Bill
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BREAKING: Comprehensive List of Taxes
In House Democrat Health Bill

From Ryan Ellis on Thursday, October 29, 2009 12:20 PM
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H.R. 3962, the "Affordable Health Care for America Act" has been introduced--all 1990 pages of it.  This gargantuan beast contains thirteen new tax hikes.  Here they all are, with description and page number (PDF version):

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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).

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.

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.

Cap on FSAs (Page 325): FSAs would face an annual cap of $2500 (currently uncapped). 

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.)

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.

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.

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.

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.

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

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.

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.

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.

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Comments

GOD HELP US! We need to replace everyone in congress and the senate with conservatives!
>> Charles Cook Thursday, October 29, 2009 2:34 PM

God bless, Amerika. Land that I loved. Now, I do not even closely recognize the nation that I honorably served under four different Presidential administrations.
>> Lance Cordill Thursday, October 29, 2009 2:37 PM

I am with you Charles - Congress and the Senate need to listen to their Constituents and are not!
>> Linda Weiss Thursday, October 29, 2009 3:47 PM

FOX news reported last night that in a recent poll, 57% of americans support a "public option." So I guess one can argue that Congress IS listening to its constituents, not just the "conservative" ones.
>> John Thursday, October 29, 2009 3:57 PM

Congress doesn't need to listen to the constituents because this is a Republic and not a Democracy. We elect them as representatives so they will govern based on the beliefs they espoused during their campaign. What we need to do is elect better representatives, those that have philosophies based on protecting individual rights and liberty. First we have to educate those 57% of people that want economic slavery, that the government is not the solution, but the problem. Until that happens, we will continue down this "road to serfdom."
>> TCH Thursday, October 29, 2009 4:47 PM

SCOTUS will throw out individual mandate and it all comes crashing down
>> George Thursday, October 29, 2009 5:19 PM

Tax hikes that are directly related to a new program are not bad. Someone and somebody has to pay for these new services. A reflexive attack on any tax increase is not going to convince any moderates to join with the republicans. Keep saying no and be prepared to be the minority for a long long time.
>> Cory Glaberson Thursday, October 29, 2009 6:54 PM

Sorry guys, I don't really object to these. Incenting businesses to provide coverage (which by the way decreases the size of the public option, something you all say you want) is a desirable thing. Similarly, the individual mandate surtax is just enacting they key feature of the bill - requiring everyone to buy insurance so that we're not stuck paying their bills when they do get sick. The rest of these seem like pretty straightforward loophole closings, with the exception of "Surtax on Individuals and Small Businesses" which is a bonafide new tax. I'll admit I don't love that and wish they could just cut it out of the bloated spending we've already got. But overall this seems like a step in the right direction.
>> Jordan Graf Thursday, October 29, 2009 7:56 PM

We have 14 employees in our business with a payroll of about $500,000. The cost of providing insurance for all of them is about $51,000 a year. If we opt not to insure them we would pay an excise tax of 2% of $500,000. In other words $10,000. We could save $41,000 by not insuring them. We won't do that to our employees but there are plenty that will and who knows about us if things get really tight. So off they go to the "public option". "If you are happy with your insurance right now you can keep it ..." yeah, right, provided your employer doesn't dump you into the public option.
>> Rob Thursday, October 29, 2009 8:22 PM

Rob, You're entirely correct, but that's not a bug--it's a feature. The Dems WANT to make it more expensive for employers to insure, because they WANT people to get pushed into the "public option." I'm reminded of something I heard long ago, "under capitalism, if you don't work you don't eat; under socialism, if you don't obey you don't eat." Replace "eat" with "receive health care" and you will understand where the left wants to go with this.
>> Mike Thursday, October 29, 2009 9:42 PM

Think we all knew there would be tax hikes and mandates.....nothing new there. What I'm not learning is what the cost of a "qualifying" policy will be for us individual peons, the ones that dont qualify for low income assistance because we're a couple bumps above the poverty line....assistance I dont want and wouldnt accept anyway because it goes against the fiber of my being. The same exact catastrophic policy for my husband & myself, with a $10,000 deductible is $200 LESS in Nebraska than in Nevada. $200 a month would sure help our younger-than-yer-average-no chronic health issues-retiree-retirement-budget. I fear the government will mandate a "qualifying" policy that I dont need and it will be more expensive.
>> B Johnson Thursday, October 29, 2009 10:31 PM

Does the 1990 page plan say what it will cost? The public option may cost me my job, but I'm not worried, The Individual Mandate Surtax will make sure I pay for my public healthcare. And if I manage to keep my job, The FSA cap and the restriction against non-prescription medications are going to cost me personally. I cannot speak for my employer, but I would think the taxes on large firms will be reflected in the price of our health plans, reducing our ability to compete with the taxpayer subsidized "public" option. The deck is quite stacked.
>> Jim Thursday, October 29, 2009 10:52 PM

We have to vote out the "house of lords" and their fiefdoms at voting time. We should have term limits on our representatives (oxymoron) to 6 years and maybe we will have people that truly want to serve their country and constituents! We are becoming a banana republic, a third world country, a socialist country. God help us regain our country back!
>> Alice Alfano Friday, October 30, 2009 8:19 AM

I couldn't buy entertainment as good as I'm getting watching these conservatives squeal like pigs. When ever there's a Republican in office, not a peep, but bring in an educated black man as president oh ya and he's Democrat, and boy wholly HELL, all of sudden the taxes that are payed are all from conservatives and nobody else, they,re screaming. Oh ya
>> Bill Friday, October 30, 2009 9:23 AM

Aparrently Bill you were not listening during the Bush years, Conservatives were voicing their opposition loud and clear. Not only at the Congress and Senate but also the President. Whay do you think the membership of the Republican Party has dropped over the past several years. Trouble is not the President it's the arogant Congress and Senate. B ut perhaps you don't like the concept of our Republic, Fiscal Responsibility, Limited Government and Free Markets. Perhaps you might try reading the Constitution one tiem and another book I would recommend is the 5000 year leap. And ay God Bless America.
>> Les Friday, October 30, 2009 9:58 AM

It's the overseas jobs relocation act.
>> rhhardin Friday, October 30, 2009 10:02 AM

John says: "FOX news reported last night that in a recent poll, 57% of americans support a 'public option.' So I guess one can argue that Congress IS listening to its constituents, not just the 'conservative' ones." >> John Thursday, October 29, 2009 3:57 PM -- Ah, but I guess one can also "argue" that FOX is NOT a "news" organization! This is what the servants of the Great One have been telling us. FOX is "biased," don't you know! So the 57 percent figure has to be incorrect, and I suppose Congress is NOT really listening to its constituents -- "conservative" or otherwise -- after all!
>> David S. Friday, October 30, 2009 12:20 PM

THEY ARE POLLING "PUBLIC OPTION" WHICH IT ISN'T! Like Obama's election, this is based on spin and falsehood. Yet another WHOPPER lie.
>> mark Friday, October 30, 2009 12:40 PM

all you really need to read about the new house bill ... http://afencepost.blogspot.com/2009/10/all-you-need-to-know-about-pelosis.html
>> ckncook Friday, October 30, 2009 12:56 PM

Wow, this is NOTHING but bad news.
>> Dairenn Lombard Friday, October 30, 2009 1:47 PM

I have linked to your post from the archive http://www.jeremiahfilms.com/released/WhiteHouse/95/910301030 95 percent to see taxes reduced. Thank you for your research.
>> Wayne Smith Friday, October 30, 2009 2:18 PM

I have had insurance all my life. As a minor my mom and dad CHOSE to provide insurance for us. As an adult my husand and I CHOSE to provide insurance for our family. I deeply resent that someone in Washington DC can come along and MANDATE that I buy anything.
>> Cathy Friday, October 30, 2009 2:47 PM

But we get to claim the "Geithner Rule" and delay paying taxes until we're nominated for a cabinet position, right?
>> malclave Friday, October 30, 2009 3:22 PM

The ABC News poll does show that 57% prefer the public option, but the same poll indicates that only 45% want ObamaCare to pass. See the analysis at http://www.realclearthinker.com.
>> Rosa H Friday, October 30, 2009 3:42 PM

The web of cross referenced laws here shown is designed to baffle the typical American. Want to renew a driver's license? Sorry you don't have insurance, etc, ad nauseum. This recticranially inverted administration will push the American citizenry too hard, and when they do there will be a revolt. God help us all once the shooting starts, I believe alot of career DC employees are in the hot seat.
>> Silence Dogood Friday, October 30, 2009 3:56 PM

This gives new meaning to tax and spend liberals, er I mean tax spend and print Marxists and Maoist running the D party. Since the D's in Congress have no clue or concept of what is Consitutional, you might as well scratch off the 1st 10 admendments. We have no rights! The Democrats and Rino's want to have that old failed traditional form of government, lords and nobles in the House and Senate with the King and his court in the White House.
>> Doug Friday, October 30, 2009 5:04 PM

funny...how fox, abc, and whoever else u mentioned...all had the same poll numbers? Even though thier audiences are so different? Watch this, and then tell me if you still beleive in "polls" http://www.youtube.com/watch?v=If9EWDB_zK4&feature=player_embedded I've never noticed once in my lifetime...where increasing taxes HELPED US...HOW...SERIOUSLY...HOW IS THIS GOING TO HELP ANYONE?! Ohh, except the bankers and politicians and anyone else they happen to have in thier pocket. Stop watching mainstream media, and do some real research...jokers.
>> RidgidGrrrl Friday, October 30, 2009 5:09 PM

REVOLT! Refuse to buy in. Refuse to pay fines. Refuse to heed their unconstitutional actions. Fight back
>> GunnyG Friday, October 30, 2009 5:50 PM

Get rid of these people before it's too late. They do not care what the American people want. It's all part of their agenda. GOD HELP THE GOOD OLE USA.
>> Ofinn Friday, October 30, 2009 6:08 PM

Gee, Bill, are you a business owner? Do you pay anyone a salary? I doubt it. This is entertaining to you? Are you self-employed and itemize deductions for your business? I doubt that as well. If you were either of those, a business owner or self-employed, you would not find this so entertaining. Let me guess: You are one of those losers that really HATE anyone who is classified as rich or successful. Do us all a favor and go spread the joy of your wonderful, educated SOCIALIST B/S President and his "if you want to keep your existing policy you can" lies elsewhere.
>> notbelievingthiscrap Friday, October 30, 2009 6:21 PM

I could not believe Nancy Pelosi actually stood there, with a straight face, and said that most American's are for a Public Option. I am borrowing a word from Bill O'Reilly. Pelosi is "bumptious." (disagreeably conceited, arrogant, or pushing) Bumptious Barak. That alliteration fits too!
>> Denita R Friday, October 30, 2009 7:41 PM

IT IS TIME TO SET TERM LIMITS BUT WE KNOW CONGRESS WILL NEVER GO FOR IT SO WE MUST DO IT OURSELVES. IF THEY ARE IN VOTE THEM OUT. ONE TERM WILL AT LEAST LIMIT THE DAMAGE THEY DO.
>> Ray Madden Friday, October 30, 2009 10:06 PM

If they can't manage Social Security and Medicare how the hell are they going to run healthcare. Those of us they are going to be dependent on Social Security are totaly screwed, by the time we are suppose to retire SS will be broke. With millions unemployed and more coming who is going to pay into it. And with Medicare going broke and deep cuts to it if this passes what are the boomers going to do for healthcare? And don't forget about the Cap and Trade bill. That will tax us even more.
>> Jayne W Saturday, October 31, 2009 12:47 AM

I am not the brightest crayon in the box but I know a bunch of losers trying to run a great country into the ground (whether it be due to stupidity or intentional). Plus, their followers. Stand-up Americans! Keep fighting against this - we have a long way to go and we can do it! You just need to do more than watch Fox News - you need to write, email, phone Congress and the White House, attend rallies, boycott anyone who dishonors our country with their comments and actions, buy American, etc., and get your friends and family to become active at this time of crisis.
>> Kristen Bright Saturday, October 31, 2009 9:42 AM

The most dangerous of the above tax increases has nothing to do with healthcare. The codification of the economic substance doctrine along with the doubling of penalties will have another chilling effect on taxpayers. The IRS now has the added weapon of being able to change your tax return to whatever it wants. Judge Learned Hand famously stated that there is nothing sinister in arranging your affairs to avoid paying taxes. Congress is about to throw years of wisdom and common sense away and give unlimited power to the IRS. Perhaps their new employee uniforms will consist of brown shirts and armbands.
>> Bryan Saturday, October 31, 2009 11:24 AM

Spending our country into trillions of dollars of additional debt. Taxing our citizens beyond our capcity to pay. Drumming small business into the ground. Controlling healthcare to be doled out at bureaucratic whim. Are these the means to continue American excellence of over 200 years? This will drive the country into poverty and eventually, revolution. How did we lose everything so fast? Do we need to take up arms to preserve the freedoms that are guaranteed in our Constitution?
>> Jim Saturday, October 31, 2009 11:30 AM

Start over. When the cost of health care is evaluated we find that (1) government mandates (2) legal liabilities(defensive medicine) (3) lack of market based competition(remove the government prohibitions on interstate competition) (4) neutering (MSA) medical savings accounts for the young to use as they age (5)lack of sufficient tax credits for catastrophic health problems are the proximate causes for the high price of health care. BTW our rep's on the hill are exempt from this bill!
>> Codification Sunday, November 1, 2009 1:24 AM

The poster who said, "SCOTUS will through out individual mandate and it will all come crashing down!" Sorry - but I read this morning - there is a provision in the Bill that says if any part of the bill is determined to be unconstitutional or whatever - that the rest of the bill stands as is! Our Congress has thought of everything - BUT - what we want. BTW - for the person who said that Fox is reporting that 57% of our country wants health care reform - that does NOT mean THIS health care reform. I am for reform - but TORT REFORM!
>> Louise Monday, November 2, 2009 1:24 PM

I say, why all the complexity? Why fool with anything like the "Economic Substance Doctrine"? Just get on with it and do what it is they all want. Replace the entire tax code with this one simple line: "We will thieve every cent you make." There, done, get on with it already!!!!
>> MAC Tuesday, November 3, 2009 11:47 AM

There is a website at www.mywritertools.com that has the new Health Bill 3962 in .doc, .rtf and .pdf versions as well as a program that lets you easily count and list all words and phrases in the document. It also lets you select a word or phrase and easily go to each occurence in the document. You can get the different versions of the bill at http://www.mywritertools.com/congress.asp
>> Robert Etheredge Tuesday, November 3, 2009 1:10 PM

Doesn't anyone notice an excessive use of the term "modified adjusted gross income" (MAGI)? The tax on individuals is based on MAGI which includes tax-free income from municipal bonds. Bonds that were purchased under the premise they were TAX-FREE. Now they are not? Isn't this what congress objected to credit card companies doing, raising interest on purchases already made? This is an unacceptable double standard by our politicians and if this passes I'm moving to Canada. My bonds have already lost considerable value because of congress' reckless spending and now they want to tax them? NO WAY
>> Mike Thursday, November 5, 2009 5:20 PM

It's about time!!!! Thank you for getting this bill passed It is truly a great day in american history. All the lies, that have been spread, all the smut emails, all the commercials with more lies!!!! We overcame, and now we have to just get through the senate!!!
>> Joe Sunday, November 8, 2009 12:21 PM

Funny...the Trojans thought they had a gift, too. http://en.wikipedia.org/wiki/Trojan_Horse ALL countries where this "gift" to the people is given, is given malevolently under the guise of affordability and fair pricing. It is the root of all subjegation. Our same government benefactors have bankrupted (or are close to) social security, medicare and every entitelment program. England's cancer survival rate is way less than the U.S. Canadians come here to pay for treatments and operations not available under their "affordable" system. Judge this in light of what happens elsewhere, because it is coming here.
>> Codification Monday, November 9, 2009 1:06 AM

"Here they all are, with DESCRIPTION and page number. description? Why not the entire section? Or the language straight from the section? Does anyone find that odd?
>> Chico Monday, November 9, 2009 5:25 PM

If this passes all the way there is at least one silver lining. It will be morbidly enjoyable to watch those who wanted this thing get exactly what they wanted.
>> MAC Monday, November 9, 2009 6:47 PM

"545 vs. 300,000,000" 545 PEOPLE Look up the achieves By Charlie Reese, a columnist at Lew Rockwell.com. Thanks. A very concerned American "......I hope this goes around THE USA at least 100 times!!! YOU can help it get there!!! GO AHEAD - - - BE AN AMERICAN!!!" {For the entire 20th Century, America has put in and let them go for it! Starting in 2012, Clean house, from the local, clear to Washington! To stop this now! But, let us not make the same mistake! KEEP-IT-CLEAN, or they will not stop!!!}(my emphasis) My message, a copy of this column is too long!
>> Tom Kopper Tuesday, November 10, 2009 7:13 PM

When this healthcare fiasco takes hold, I don't want to hear any grumbling from the idiots (JOE above) who voted for the Marxists in the D party. I just want to have them reach deep into their pockets, pay through the nose and smile while they are on a 9 month waiting list for a life saving operation. The House bill isn't good enough for Pelosi then it certainly isn't good enough for me.
>> Doug Wednesday, November 11, 2009 4:31 PM

BOTTOM LINE, all the H.C. bills DO NOT DO WHAT WAS PROMISED. Will all uninsured be covered? No. Does coverage start immediately? No. Does payment start later? No. Can we keep our current covg? Yes if we pay more. Will it give better care? NO! Medicare has more denials than any ins. & Pelosi care will, too. Will there be rationing? YES, there'll HAVE to be when millions are added. Will there be delays? Same answer. Does the administration lie? Absolutely YES!! All these failures...and at what cost? More government control, more bankrupting of U.S. But it won't matter when the COPENHAGEN TREATY gets signed, we won't be 'U.S.' much longer, anyway.
>> Monica Thursday, November 12, 2009 10:57 AM

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