Since taking office, President Trump has managed to repeal six Obamacare tax increases:
1. Obamacare Individual Mandate Tax. This much-loathed tax was zeroed out by the 2017 Tax Cuts and Jobs Act. The $695 – $2,085 tax hit five million households per year. 80 percent of these households had annual income of less than $75,000. This tax is just one of the many Obamacare tax increases that hit the middle class in violation of Barack Obama and Joe Biden’s “firm pledge” that no American making less than $250,000 per year would see any form of tax increase.
2. Obamacare Medicine Cabinet Tax. There are 26 million Americans with a Health Savings Account and 35 million Americans with a Flexible Spending Account. Prior to Obamacare, these households were able to use pre-tax HSA and FSA dollars to purchase over the counter flu and cold medicines along with thousands of other items that fill a typical household medicine cabinet. Obama and Biden forbid the purchase of these items with HSA and FSA funds and did not exempt households making less than $250,000 per year, yet another violation of Obama-Biden’s “firm pledge” not to raise any form of any tax on these households. Thankfully President Trump signed the repeal of the Obamacare Medicine Cabinet Tax last week, a huge help to cash-strapped middle class families.
3. Obamacare Medical Device Tax. It’s a good thing President Trump signed the repeal of this Obamacare tax in December 2019, because this tax would be particularly harmful while America battles the coronavirus. Medical device companies produce tens of thousands of products, from respirators to imaging equipment to hospital beds. This Obamacare tax was set to impose a 2.3 percent excise tax on total sales of each medical device company, even those companies who did not turn a profit in a given year. The specter of this tax put American medical device companies at a disadvantage to overseas firms. The medical device tax was originally scheduled to take effect in 2013 but was repeatedly delayed at the insistence of Republicans in congress. Trump put this tax out of its misery for good.
4. Obamacare Chronic Care Tax. This Obamacare provision was an income tax increase on households with high medical or dental expenses in a given year. Prior to Obamacare, households incurring medical expenses exceeding 7.5 percent of their adjusted gross income were allowed to take an income tax deduction. Obamacare raised that threshold to 10 percent, widening the net of taxable income, hitting middle class households hard by punishing those who happened to have bad health luck in a given year. Obama and Biden did not exempt households making less than $250,000 — yet another violation of Obama-Biden’s “firm pledge” not to raise any form of any tax on these households. Thankfully President Trump repealed this tax increase as part of the 2017 Tax Cuts and Jobs Act.
5. Obamacare Tax on Comprehensive Health Insurance Plans. Obamacare included a 40 percent “Cadillac” tax on employee health insurance coverage Obama and Biden considered to be too good. This 40 percent tax would have hit millions of middle class and union households hard. It was originally scheduled to go into effect in 2018 but the implementation date was delayed to 2022. Trump put the tax out if its misery in December 2019, effective immediately in 2020.
6. Obamacare Health Insurance Tax. Obamacare imposed a steep excise tax on health insurance providers which only served to raise costs for customers, pricing many Americans out of insurance access. Trump signed repeal of this Obamacare tax in December 2019.