Very quickly, here are the tax increase changes from Baucus’ original plan to the Chairman’s mark:
- excise tax on uninsured families making more than 300 percent of the federal poverty line reduced from $3800 to $1900. Unclear on other levels (single/family, 300 percent FPL/<300 percent FPL)
- excise tax on "Cadillac health plans" raised from 35 percent to 40 percent
- threshold for "Cadillac plans" unchanged ($21,000 family/$8000 single), but index is now inflation-plus-1 percent
- exceptions on "Cadillac plans" made for high-risk professions and over-55 retirees
- new cap on health FSAs now $2500, not $2000
- new tax on clinical labs dropped
- new income exclusion for Indian tribe health benefits
- raises "haircut" on medical itemized deductions from 7.5 percent to 10 percent of adjusted gross income, which conforms the regular tax deduction to the AMT deduction
- the small business tax credit would be extended on a refundable basis to 501(c)(3) non-profits which owe no income taxes
- no adjustments to income can be taken into consideration for eligibility for the individual health tax credit. This includes IRA deductions, small business retirement plans, self-employed health insurance premiums, HSA contributions, the student loan interest deduction, the teacher classroom expenses deduction, alimony payments, the tuition and fees deduction, and the savings early withdrawal penalty