By Susan Duclos
ATR (Americans for Tax Reform) has separated out the top five taxes within the Obamacare law from the full list of 20, that are to take effect on January 1, 2013.
The Obamacare Medical Device Tax – a $20 billion tax increase:
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 prosthetics more expensive.
The Obamacare “Special Needs Kids Tax” – a $13 billion tax increase:
The 30-35 million Americans who use a Flexible Spending Account (FSA)
at work to pay for their family’s basic medical needs will face a new
government cap of $2,500 (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 – a $123 billion tax increase: This is a new, 3.8 percentage point surtax on investment income earned in households making at least $250,000 ($200,000 single).
The Obamacare “Haircut” for Medical Itemized Deductions – a $15.2 billion tax increase: 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 -- an $86.8 billion tax increase: 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.
Click over to ATR to see the tables/charts associated with the taxes.
(See Comprehensive List Of 20 Obamacare Tax Hikes With Effective Dates-Embedded HERE)
