Use Your Obama Tax Hike Exemption Card for these Taxes

[PDF Version]

TheTax on Indoor Tanning Services takes effect July 1, 2010:  This provision of Obamacare imposes a new 10 percent excise tax on Americans using indoor tanning salons.  The tax was tucked into the bill behind closed doors at the last minute, replacing the previous “Bo-Tax” – a proposed tax on plastic surgery.  The 30 million Americans who visit tanning facilities are getting a lesson in the petty, nanny-state nature of Obamacare – every time they walk through the door.  Not to mention the business owners and employees who are threatened by the tax.  (Page 373 of Manager’s amendment/$2.7 billion)

The “Medicine Cabinet Tax” takes effect Jan. 1, 2011: Thanks to Obamacare, Americans will no longer be 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).  (Page 1997/Sec. 9003/$5 billion)

The “Special Needs Kids Tax” takes effect Jan. 1, 2011:  This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit).  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. (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.  (Page 1999/Sec. 9005/$14 billion)

The HSA Withdrawal Tax Hike takes effect Jan. 1, 2011: This provision of Obamacare increases the 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.  (Page 1998/Sec. 9004/$1.3 billion)

TheMedical Itemized Deductions Cap takes effect Jan. 1, 2013:  Currently, those facing high medical expenses are allowed a deduction if the total cost if the expenses reduces the filer’s income by 7.5%.  This provision of Obamacare imposes a threshold of 10%.  This new tax will most adversely affect early retirees and the catastrophically ill.  (Page 2034/Sec. 9013/$15.2 billion)

The Obamacare Individual Mandate Excise Tax takes effect Jan. 1, 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): (Page 324/Sec. 1501)

The Obamacare Medical Prosthetics and Devices Tax took effect in January of 2010:

This Obamacare tax raises the price of all medical prosthetic devices, such as pacemakers and artificial limbs. Consumers of these devices will end up paying more for these life-saving items.  ($20 billion)

The Obama Tobacco Tax Hike took effect April 1, 2009

Obama first broke his tax pledge sixteen days into his presidency when he signed into law a 156 percent increase in the federal excise tax on tobacco.  At that time, Obama was rightly called out by Calvin Woodward of the Associated Press in a piece titled “Promises, Promises: Obama Tax Pledge Up in Smoke”  Use your Obama Tax Hike Exemption Card – or else be prepared to pony up an extra 62 cents per pack of cigarettes.

Potential Obama Tax Hike to Watch Out For:  A Federal Soda Tax

In an interview with Men's Health published in September of 2009, President Obama said that a tax on soda and sugar-laden beverages was "an idea that we should be exploring."  So, keep your Obama Tax Hike Exemption Card handy at all times!  With this President, you never know when the other shoe will drop!