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9 new Obamacare tax hikes that will cripple the U.S. economy

Much of Obamacare has already been implemented but there are nine new taxes that have not yet gone into effect.  Americans for Tax Reform is out with a report on all the Obamacare taxes that start going into effect in tax year 2013 and beyond.

These new taxes will help to destroy small businesses and job creation, not to mention make the healthcare system that much sicker.  And these are not new taxes on the wealthy.  Obamacare taxes largely fall on the middle class.  It’s a travesty that this piece of legislation is called The Affordable Care Act.

Here is the list from the report at www.atr.org:

Starting in 2013:

1) Obamacare Surtax on Investment Income:  A new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 single).

2) Obamacare Medicare Payroll Tax Increase:  Obamacare imposes a new 2.3 percent excise tax on gross sales. This will make everything from pacemakers to artificial hips more expensive.

3) Obamacare Medical Device Tax:  Medical device manufacturers employ 409,000 people in 12,000 plants across the country. Obamacare imposes a new 2.3 percent excise tax on gross sales – even if the company does not earn a profit in a given year.

4) Obamacare High Medical Bills Tax:  Before Obamacare, Americans facing high medical expenses were allowed a deduction to the extent that those expenses exceeded 7.5 percent of adjusted gross income (AGI).  Obamacare now imposes a threshold of 10 percent of AGI.  Therefore, Obamacare not only makes it more difficult to claim this deduction, it widens the net of taxable income.

5) Obamacare Flexible Spending Account Tax:  The 30 – 35 million Americans who use a pre-tax Flexible Spending Account (FSA) at work to pay for their family’s basic medical needs face a new Obamacare cap of $2,500.  Now, a parent looking to sock away extra money to pay for braces will find themselves quickly hitting this new cap, meaning they would have to pony up some or all of the cost with after-tax dollars.

There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. Nationwide there are several million families with special needs children and many of them use FSAs to pay for special needs education.

Starting in 2014:

6) Obamacare Individual Mandate Non-Compliance Tax:  Starting in 2014, anyone not buying “qualifying” health insurance – as defined by President Obama’s Department of Health and Human Services — must pay an income surtax to the IRS. The Congressional Budget Office recently estimated that six million American families will be liable for the tax, and as pointed out by the Associated Press:  “Most would be in the middle class.”

7) Obamacare Employer Mandate Tax:  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.

 8) Obamacare Tax on Health Insurers:  Annual tax on the industry imposed relative to health insurance premiums collected that year.  The tax phases in gradually until 2018.  Fully imposed on firms with $50 million in profits.

Starting in 2018:

9) Obamacare Tax on Union Member and Early Retiree Health Insurance Plans:  Obamacare imposes a new 40 percent excise tax on high cost or “Cadillac” health insurance plans, effective in 2018. This tax increase will most directly affect union families and early retirees, who are likely to be covered by such plans.

See the full report at www.atr.org.

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Comments

  1. harpat says:

    It is pure conjecture to think tax hikes will cripple the economy when businesses have no problems spending extravagantly on CEO and upper management compensation, Athletes writing 100 million dollar contracts, paying lavishly to models flashing their cleavages and artificial boobs and butts. What may be crippling the economy is excessive unsustainable consumption forcing the US to go offshore to maintain it. Obama’s taxes may not cure the basic problem, they are just trying to lessen the pain from abusive capitalism.

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