$1 TRILLION Obamacare Tax Hike Hitting You On January 1 2013
On January 1, regardless of the outcome of fiscal cliff negotiations, Americans will be hit with a $1 trillion Obamacare tax hike.
Obamacare contains twenty new or higher taxes. Five of the taxes hit for the first time on January 1. In total, for the years 2013-2022, Americans face a net $1 trillion tax hike for the years 2013-2022, according to the Congressional Budget Office.
The five major Obamacare taxes taking effect on January are as follows:
The 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. In addition to killing small business jobs and impacting research and development budgets, this will increase the cost of your health care – making everything from pacemakers to artificial hips more expensive.
The Obamacare Flex 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 will face a new government cap of $2500. This will squeeze $13 billion of tax money from Americans over the ten years. (Currently, the accounts are unlimited under federal law, though employers are allowed to set a cap.)
There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are several million families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. This Obamacare tax provision will limit the options available to these families.
The Obamacare Surtax on Investment Income: This is a new, 3.8 percentage point 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:
|2013+ (current law)||23.8%||43.4%||43.4%|
The table above also incorporates the scheduled hike in the capital gains rate from 15 to 20 percent, and the scheduled hike in dividends rate from 15 to 39.6 percent.
The Obamacare “Haircut” for Medical Itemized Deductions: Currently, those Americans facing high medical expenses are allowed a deduction to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI). This tax increase imposes a threshold of 10 percent of AGI. By limiting this deduction, Obamacare widens the net of taxable income for the sickest Americans. This tax provision will most harm near retirees and those with modest incomes but high medical bills.
The Obamacare Medicare Payroll Tax Hike: The Medicare payroll tax is currently 2.9 percent on all wages and self-employment profits. Under this tax hike, wages and profits exceeding $200,000 ($250,000 in the case of married couples) will face a 3.8 percent rate instead. This is a direct marginal income tax hike on small business owners, who are liable for self-employment tax in most cases. The table below compares current law vs. the Obamacare Medicare Payroll Tax Hike:
|All Remaining Wages
|Obamacare Tax Hike||1.45%/1.45%
|Print article||This entry was posted by NTEB News Desk on December 29, 2012 at 7:06 pm, and is filed under Obama, Politics, Washington. Follow any responses to this post through RSS 2.0. Both comments and pings are currently closed.|
about 2 weeks ago - 15 comments
Just days after the deadline to enroll for insurance coverage through Nevada Health Link, the first class-action lawsuit has been filed on behalf of residents who say they signed up and paid their premiums – but were never given coverage.
about 2 weeks ago - 19 comments
Numbers from a RAND Corporation study that has been kept under wraps suggest that barely 858,000 previously uninsured Americans – nowhere near 7.1 million – have paid for new policies and joined the ranks of the insured by Monday night.
about 3 weeks ago - 9 comments
about 3 weeks ago - 6 comments
Breitbart: The Obama administration has been helping to facilitate a series of events nationwide at Mexican Consulate offices to enroll people in Obamacare – and a key activist says the efforts are “our responsibility” regardless of citizenship. “Whether they’re Mexican nationals or whether they’re United States citizens or whether they’re in transition– and if they’re…
about 3 weeks ago - 8 comments
Obamacare is the most disastrous law of our lifetimes, one that was forced upon us in the most dishonest of ways in order to fundamentally transform America from the Land of the Free into a nation of dependents. The Obamacare days of reckoning have barely begun, and our only salvation now is to repeal this train wreck in its entirety and to be honest with Americans about what measures actually work: patient-centered, market-driven reforms.
about 3 weeks ago - 8 comments
Once again, the President of the United States speaks power to truth. If you oppose his attempts to control every aspect of your life, including your very body itself, he’ll only redouble his rhetorical efforts to sell you something you don’t want and can’t afford. And he’ll mock you for daring to dissent.
about 1 month ago - 11 comments
about 1 month ago - 5 comments
Ezekiel Emanuel, one of the architects behind Obamacare, is now claiming that “insurance companies as we know them are about to die.” Critics of President Barack Obama’s signature health care law have long alleged that one of the real goals of the law was to put private insurance companies out of business.
about 1 month ago - 12 comments
Some restaurants have made the decision to charge customers for Obamacare: Gator’s Dockside restaurants in Florida have added a 1% Affordable Care Act surcharge on their diners’ tabs, while at least one popular restaurant in Los Angeles has added a 3% charge to bills.
about 2 months ago - 12 comments
President Barack Obama’s Treasury Department issued a new regulation today that for the second time directly violates the plain and unambiguous text of the Patient Protection and Affordable Care Act by allowing some businesses to avoid the law’s Dec. 31, 2013 deadline to provide health insurance coverage to their employees.
Comments are closed.