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INDEX

NEWS: Comprehensive List of Tax Hikes in
Reid-Obama Health Bill UPDATED

From Ryan Ellis on Saturday, December 19, 2009 1:46 PM
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PDF Version

List of tax hikes in original Reid bill

Manager's Amendment

CBO Score of Manager’s Amendment

JCT Score of Manager’s Amendment

(Page numbers reference ORIGINAL REID-OBAMA BILL unless noted):

Individual Mandate Tax (Page 324/Sec. 1501/$15 bil/Jan 2014): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the higher of the following (page 71 of manager’s amendment updates Reid bill):

  Single 2 People 3+ People
2014 $495/0.5% AGI $990/0.5% AGI $1485/0.5%/AGI
2015 $495/1.0% AGI $990/1.0% AGI $1485/1.0%/AGI
2016+ $495/2.0% AGI $990/2.0% AGI $1485/2.0%/AGI

 

Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS).

Employer Mandate Tax (Page 348/Sec. 1513/$28 bil/Jan 2014):  If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $750 for all full-time employees.  Applies to all employers with 50 or more employees.

If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer).

Excise Tax on Comprehensive Health Insurance Plans (Page 1979/Sec. 9001/$149.1 bil/Jan 2011): 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.  Longshoremen have been exempted (page 362 of the manager’s amendment)

From 2013-2015, the 17 highest-cost states are 120% of this level. 

Employer Reporting of Insurance on W-2 (Page 1996/Sec. 9002/Min$/Jan 2011): Preamble to taxing health benefits on individual tax returns.

Medicine Cabinet Tax (Page 1997/Sec. 9003/$5 bil/Jan 2011): No longer allowable 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)

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

FSA Cap (Page 1999/Sec. 9005/$13.3 bil/Jan 2011): Imposes cap on FSAs of $2500 (now unlimited).  Indexed to inflation after 2011 (added on page 363 of manager’s amendment)

Corporate 1099-MISC Information Reporting (Page 1999/Sec. 9006/$17.1 bil/Jan 2012): Requires businesses to send 1099-MISC information tax forms to corporations (currently limited to individuals), a huge compliance burden for small employers

Excise Tax on Charitable Hospitals (page 2001/Sec. 9007/Min$/immediate): $50,000 per hospital if they fail to meet new "community health assessment needs," "financial assistance," and "billing and collection" rules set by HHS (updated on page 364 of manager’s amendment).

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

Tax on Medical Device Manufacturers (Page 2020/Sec. 9009/$19.2 bil/Jan 2010): $2 billion annual tax on the industry imposed relative to shares of sales made that year.  Exempts items retailing for <$100.  Rises to $3 billion annually in 2017 (updated by page 364 of manager’s amendment).

Tax on Health Insurers (Page 2026/Sec. 9010/$59.6 bil/Jan 2011): $10 billion annual tax on the industry imposed relative to health insurance premiums collected that year.  Phases in gradually until 2017.  Fully-imposed on firms with $50 million in profits (updated on page 365 of manager’s amendment)

Eliminate tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D (Page 2034/Sec. 9012/$5.4 bil/Jan 2011)

Raise "Haircut" for Medical Itemized Deduction from 7.5% to 10% of AGI (Page 2034/Sec. 9013/$15.2 bil/Jan 2013): Waived for 65+ taxpayers in 2013-2016 only

$500,000 Annual Executive Compensation Limit for Health Insurance Executives (Page 2035/Sec. 9014/$0.6 bil/Jan 2013)

Hike in Medicare Payroll Tax (Page 2040/Sec. 9015/$86.8 bil/Jan 2013): Current law and changes:

 

First $200,000
($250,000 Married)
Employer/Employee

 All Remaining Wages
Employer/Employee
Current Law 1.45%/1.45%
2.9% self-employed		 1.45%/1.45%
2.9% self-employed
Reid-Obama Tax Hike 1.45%/1.45%
2.9% self-employed		 1.45%/2.35%
3.8% self-employed

 
The 0.9% new rate addition is not deductible for the self-employment tax adjustment.  Updated by page 372 of manager’s amendment.

Blue Cross/Blue Shield Tax Hike (Page 2044/Sec. 9016/$0.4 bil/Jan 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

STRICKEN: Tax on Cosmetic Medical Procedures (Page 2045/Sec. 9017/$5.8 bil/Jan 2010): New 5% excise tax on elective cosmetic surgery to be paid by the surgery patient.

REPLACED BY: Tax on Indoor Tanning Services (Page 373 of Manager’s amendment/$2.7 billion/July 1, 2010): New 10% excise tax on indoor tanning salons

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Comments

Tampons are already way too expensive and they are going to tax that!! what we have to use socks now!!
>> lorr Sunday, December 20, 2009 12:59 PM

The cap on FSA will be devastating.
>> Jason Sunday, December 20, 2009 8:35 PM

well this sux - health care bill removes tax on boob jobs but now it will cost you more to keep them tan year round
>> jgreer Sunday, December 20, 2009 9:39 PM

The 1099-MISC is going to be a major headache for small businesses. It means every time my business spends more than $600 - say to buy a computer from Dell - I have to mail Dell and the IRS a 1099-MISC.
>> Gideon7 Monday, December 21, 2009 12:50 AM

Gideon7, that is incorrect.
>> Eric Monday, December 21, 2009 9:20 AM

This is going to devastate the U.S. economy and run health care costs through the roof. Isn't it funny that noticeably absent from all of this abhorrent legislation is a mandate that the oligarchs in Washington must also adhere to these policies.....
>> juscogens Monday, December 21, 2009 9:29 AM

bring it on. the sooner the better . this will mean the system will break down and end sooner. then gods new government will take over. no more corruption then.
>> home boy Monday, December 21, 2009 9:30 AM

Gideon7, I apologize. I re-read the text of the bill, and you are right. That is just scary!
>> Eric Monday, December 21, 2009 9:32 AM

Each day I am getting more concerned that ballots don't do it. What will be the fuse that sets off the militia types out there. There are a lot of current and ex-military that know how to use physical forces. It would start a terrible cascading set of events. But when the elected officials keep putting us further in debt, when they take more freedoms away, what else can be done to stop the coming financial melt down?
>> Blacknblue Monday, December 21, 2009 10:39 AM

Hows that Hopey Changey thing workin for ya now??
>> abnrdo Monday, December 21, 2009 12:00 PM

More change you can believe in. We can only hope the next congress in '11 can stop this mess and make changes where needed before this nation turns completely socialist. I do not like the thought of living in the USSA, the United Socialist States of America.
>> weagle Monday, December 21, 2009 12:21 PM

WE, THE PEOPLE need to march into Washington, surround the Capitol building, and make sure these fools don't vote this monstrosity in. The SOB's are not even answering their phones, listening to our voice messages, reading our emails, nothing. They are a bunch of whores selling our country down the drain so they can retain their power. And then these fools will go work in Washington at lobbying firms to continue to screw us! And all we can do is bitch about it! No! MARCH ON WASHINGTON!
>> OrlandoRican Monday, December 21, 2009 12:59 PM

Who will pay these taxes? (answer below) Tax on Innovator Drug Companies (Page 2010/Sec. 9008/ $22.2 bil/Jan 2010): $2.3 billion annual tax on the industry imposed relative to share of sales made that year. Tax on Medical Device Manufacturers (Page 2020/Sec. 9009/$19.2 bil/Jan 2010): $2 billion annual tax on the industry imposed relative to shares of sales made that year. Exempts items retailing for
>> ineedtea Monday, December 21, 2009 1:13 PM

Answer... the consumer of the drugs/devices. Companies pass all corporate taxes to the consumer in the form of higher prices.
>> ineedtea Monday, December 21, 2009 1:21 PM

once again we can thank the moochers in society...this is all their fault. they gave our liberal politicians all the ammo they needed to take over 17% of our economy thereby greatly increasing their power over you. all of you that voted democrat can go eff yourselves. you ruined our country.
>> JPH Monday, December 21, 2009 1:49 PM

Orlando, there is another march set to take place on Washington, DC on April 15th, 2010. http://www.teapartyexpress.org/
>> katie Monday, December 21, 2009 1:55 PM

you guys just don't get it. it doesn't matter who is in office .your srewed. the government is and has always been the problem weather it is local or national.they are needed to keep the peace and a few other things but they have grown to become a monster out of control and noone is going to stop them. look where this country has gone since world war1. downward year after year yet man thinks he is smart enough to solve the problems. what you don't realize who is really in control and that is satan and he has been since adam and eve. read the bible if you don't believe me. and only god can defeat him not man .so you keep thinking man can solve todays problems and when it's to late you will wake up.
>> home boy Monday, December 21, 2009 2:32 PM

did anyone notice this line- Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS). Am I missing something or am I understanding this to mean that ILLEGAL ALIENS will get free healthcare but will be exempt from having to pay for it? You do know that amnesty for illegals will be rammed through before the 2010 elections! All those new voters with free healthcare (that is TRULY FREE to them) will keep Dems in office forever. Does not matter what the rest of the country wants!
>> Xena Belle Monday, December 21, 2009 2:33 PM

this is the end... my lonely friend the end.
>> tony Monday, December 21, 2009 2:39 PM

I agree with tony...this is the end!
>> Norm Monday, December 21, 2009 4:55 PM

XENA: You read that right. I am a LEGAL IMMIGRANT but now regret ever having followed the law, at least when it comes to health care. But in any case, government is taking over, and we are screwed and have to take it in the A^^. Anyone saw provisions for proctologist in this bill?
>> photoguyjax Monday, December 21, 2009 5:10 PM

Ah, so religious objectors get to be exempt. Which religion is that? Scientology I'd bet. They are already exempt from social security. Do we each get a card or something for free medical care? No? everyone is free? So what you are saying is if I "join" Scientology I get free health care and am exempt from paying for it? Gee, I wonder what is going to happen now?
>> biff Monday, December 21, 2009 6:45 PM

Where's the nearest Scientology Church to Williamsburg, VA?
>> G-MAN Monday, December 21, 2009 7:46 PM

Plenty of religions will have objections to this - all of them will if they are smart. And it's only ministers and some full time staff of churches that don't pay social security on some of their church-related earnings (and it applies to all religions). Keep your bigotry to yourself please.
>> OldTrooper Monday, December 21, 2009 11:08 PM

You will know it is all over when they make the move to eliminate our last means to resist the government's total control of our lives. Why do you think there is a huge ammunition shortage? Prudent people are getting ready for the last ditch effort to save our country from these charlatans.
>> Redscho Tuesday, December 22, 2009 9:43 AM

Hmmm who uses tanning salons? Pretty much only white folks...
>> Jose Tuesday, December 22, 2009 9:54 AM

Now, thats FUNNY, Jose. Of Course ....
>> momjac Tuesday, December 22, 2009 10:24 AM

of course... cosmetic surgery exempt. Can you say "Nancy Pelosi"?
>> momjac Tuesday, December 22, 2009 10:30 AM

This is very funny....the tan tax is a tax on white people....isn't that discrimination...and the cosmetic surgery exclusion (Nancy Pelosi)......momjac made me laugh... Seriously, I am so sickened by this government takeover and grab for power and the burden on the middle class. I make 65,000 a year...the governement already takes 40% between everything ....how much more do they want from my measley salary that I work my butt off for...I am happy with my job and income but leave me alone and let me keep more of my money in my pocket. Instead of you deciding how to spend my money. It's disgusting!
>> mary anne Tuesday, December 22, 2009 11:38 AM

government was a typo....
>> maryanne Tuesday, December 22, 2009 11:47 AM

hey maryanne, go to the library and look for a book called fair tax by john linder and neal boortz. read the whole book so you understand it. you might like it better than the current tax structure. then go to boortz.com and read some more.
>> home boy Tuesday, December 22, 2009 7:52 PM

Thanks homeboy.
>> mary anne Tuesday, December 22, 2009 10:00 PM

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