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Tuesday, September 22, 2009
1:41 PM EDT
Ryan Ellis

New Tax Hikes in Chairman's Mark of
Baucus-Obama Health Plan

Very quickly, here are the tax increase changes from Baucus' original plan to the Chairman's mark:

  • excise tax on uninsured families making more than 300 percent of the federal poverty line reduced from $3800 to $1900.  Unclear on other levels (single/family, 300 percent FPL/<300 percent FPL)
  • excise tax on "Cadillac health plans" raised from 35 percent to 40 percent
  • threshold for "Cadillac plans" unchanged ($21,000 family/$8000 single), but index is now inflation-plus-1 percent
  • exceptions on "Cadillac plans" made for high-risk professions and over-55 retirees
  • new cap on health FSAs now $2500, not $2000
  • new tax on clinical labs dropped
  • new income exclusion for Indian tribe health benefits
  • raises "haircut" on medical itemized deductions from 7.5 percent to 10 percent of adjusted gross income, which conforms the regular tax deduction to the AMT deduction
  • the small business tax credit would be extended on a refundable basis to 501(c)(3) non-profits which owe no income taxes
  • no adjustments to income can be taken into consideration for eligibility for the individual health tax credit.  This includes IRA deductions, small business retirement plans, self-employed health insurance premiums, HSA contributions, the student loan interest deduction, the teacher classroom expenses deduction, alimony payments, the tuition and fees deduction, and the savings early withdrawal penalty

 

Posted by Ryan Ellis on Tuesday, September 22, 2009 1:41 PM EDT

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