At least five tax hikes in the bill violate Obama’s central campaign promise not to raise “any form” of taxes on families making less than $250,000
The healthcare reform plan unveiled today by Senate Finance Committee Chairman Max Baucus (D-Mont.) contains at least five tax increases on families making less than $250,000 per year. Each provision would violate President Obama’s central campaign promise not to raise “any form” of taxes on these Americans. The tax increases include:
Individual Mandate Tax: Those who do not enroll in a health insurance plan would have to pay a new tax in the following range:
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Single
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Family
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100-300% FPL
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$750
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$1500
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300+% FPL
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$900
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$3800
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Medicine Cabinet Tax: Americans will no longer be able to purchase over-the-counter medicines with their FSA, HSA, or HRA.
Backdoor Death of HSAs: By requiring that all plans (besides the few that are grandfathered) provide first-dollar coverage for most services, there would be no HSA-qualifying plans available from the Massachusetts-style exchanges.
Increase in Non-Qualified HSA Distribution Tax Penalty from 10 percent to 20 percent: This makes HSAs less attractive, and paves the way for HSA pre-verification.
A Cap on FSA Contributions at $2000: Currently unlimited.