If you are a parent of a child with special needs or a learning disability, that means you might be in for a rude awakening when trying to claim costs of a tutor or education on your taxes.
As schools open their doors for the beginning of a new school year, it seems like those that need to go back and hit the books the most are those who drafted the “Unaffordable Care Act,” aka Obamacare. Even with the thousands of pages of regulations and taxes, this law still finds ways to increase the tax burden on the American people and make health care more expensive.
Enrollment for Obamacare is just around the corner. Parents will soon find themselves in a quandary because while Obamacare claims to save you money, it in fact does the opposite. We were told by former Speaker of the House, (and now House Minority Leader) Nancy Pelosi that we would “have to pass it to find out what’s in it.” Like Pelosi and other politicians, you probably haven’t had the time to read through the nearly 2,000 pages of new regulations and taxes. Buried in these pages are new regulations that actually make your healthcare more expensive.
One of the ways the “Affordable Care Act” actually makes your healthcare less affordable is the new provision that places a cap on flexible spending accounts (FSAs). Here is how Jody Dietel of Wage Works Inc. describes what FSAs are and why they are beneficial to individuals:
“With an FSA, employees can put away pre-tax money to use for certain out-of-pocket medical expenses, and this type of account offers employees a considerable tax advantage.”
Aside from the benefits to employees that FSAs provide, they offer a great deal of assistance for employers who are trying to help their employees manage the rising costs of healthcare. FSAs provide a pretax benefit for both employers and employees.
Why is the government taking away this useful tool to make your healthcare more affordable? The answer is simple– the government needs more of your money. By capping FSA contributions (previously uncapped) at $2,500, the government will bring in an additional $13 billion according to Grace-Marie Turner of the Galen Institute.
Additionally, Obamacare will further burden taxpayers by changing the amount that individuals can claim as itemized deductions for medical expenses. Instead of individuals being able to claim medical expenses above and beyond the previous 7.5% of adjusted gross income (AGI), Obamacare raises said threshold to above and beyond 10% of one’s AGI.
These regulations are just two examples of the numerous regulations and new taxes that raise your healthcare costs. Behind all the smoke and mirrors lie countless taxes and regulations that increase costs for the healthcare providers, individuals, and the country as a whole.