The following is a breakout of all the net taxes from the Obamacare plan which fall (or easily could fall) directly on families making less than $250,000 per year.
Based on our analysis, we find that the "working families tax hike" subset is a ten-year tax increase of $136 billion on these households.
Of course, the rest of the tax hikes will affect all families in the form of lower wages, higher prices, and less economic growth. This list is simply those which are in direct violation of President Obama’s oft-made promise not to raise "any form" of taxes on families making less than $250,000 per year.
***The Obamacare plan raises net taxes on families making less than $250,000 by $136 billion***
Title I (Net working families tax hike of $85 billion)
- Same individual credit as Senate bill (-$102 billion)
- Same small business credit as Senate bill (-$38 billion)
- Reinsurance program ($121 billion)
- Individual and employer insurance mandate penalties ($43 billion)
- Associated effects on coverage provisions ($61 billion)
Title IX (Net working families tax hike of $51 billion)
- Corporate 1099-MISC information reporting ($17 billion): Requires businesses to send 1099-MISC information tax forms to corporations (currently limited to individuals), a huge compliance burden for small employers
- Economic substance doctrine ($4 billion): This would require taxpayers to prove to the IRS that a perfectly-legal tax deduction or strategy is "economically substantial," and not simply a way to pay less in taxes
- Tanning tax ($3 billion): New 10% excise tax on indoor tanning salons
- Increase HSA distribution penalty by 10 percentage points ($1 billion): 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.
- $2500 FSA cap a.k.a. special needs kiddie tax ($13 billion): Imposes cap on FSAs of $2500 (now unlimited). Indexed to inflation after 2011
- Medical itemized deduction "haircut" raised from 7.5 to 10 percent of AGI ($15 billion)
- Miscellaneous tax relief (-$2 billion)