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Friday, January 14, 2011

"It is important to remember that Obamacare is also one of the largest tax increases in American history."

Obamacare Packs Crushing New Taxes

Below is a comprehensive list of the two dozen new or higher taxes that pay for Obamcare’s expansion of government spending and interference between doctors and patients.

Individual Mandate Excise Tax (January 2014): anyone not buying “qualifying” health insurance must pay an income surtax according to the higher of the following.

1 Adult 2 Adults 3+ Adults
2014 1% AGI/$95 1% AGI/$190 1% AGI/$285
2015 2% AGI/$325 2% AGI/$650 2% AGI/$975
2016+ 2.5% AGI/$695 2.5% AGI/$1,390 2.5% AGI/$2,085

Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS).

Employer Mandate Tax (January 2014): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2,000 for all full-time employees. This provision applies to all employers with 50 or more employees.

If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3,000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer).

Combined score of individual and employer mandate tax penalty: $65 billion/10 years.

Surtax on Investment Income ($123 billion/January 2013): This increase involves the creation of a new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 single). This would result in the following top tax rates on investment income.

Capital Gains Dividends Other*
2010 15% 15% 35%
2011-2012 (now) 20% 39.6% 39.6%
2011-2012 (budget) 20% 20% 39.6%
2013+ (now) 23.8% 43.4% 43.4%
2013+ (budget) 23.8% 23.8% 43.4%

*Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations. It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income. It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans. The 3.8 percent surtax does not apply to non-resident aliens.

Excise Tax on Comprehensive Health Insurance Plans ($32 billion /January 2018): New 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family). For early retirees and high-risk professions exists a higher threshold ($11,500 single/$29,450 family). CPI +1 percentage point indexed.

Hike in Medicare Payroll Tax ($86.8 billion/January 2013): Current law and changes:

First $200,000
($250,000 Married)
Employer/Employee All Remaining Wages
Employer/Employee
Current Law 1.45%/1.45%
2.9% self-employed 1.45%/1.45%
2.9% self-employed
Obama Tax Hike 1.45%/1.45%
2.9% self-employed 1.45%/2.35%
3.8% self-employed

Medicine Cabinet Tax ($5 billion/January 2011): Americans no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).

HSA Withdrawal Tax Hike($1.4 billion/January 2011): 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.

There's more:
http://www.newsmax.com/GroverNorquist/obamacare-taxes/2011/01/14/id/382849

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