Sunday, December 20, 2009
Merry Xmas! A Comprehensive List of Tax Hikes in Reid-Obama Health Bill
The good folks at Americans For Tax Reform have supplied us with a list of how bad things are so far - and remember, tax rates will be rising anyway due to the expiration of the Bush tax cuts. Here are a few samples of what's in store if this garbage bill passes:
Employer Mandate Tax (Page 348/Sec. 1513/$28 bil/Jan 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 $750 for all full-time employees. Applies to all employers with 50 or more employees.
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).
( That's a great to get employers to do new hires and cut unemployment, no?)
Excise Tax on Comprehensive Health Insurance Plans (Page 1979/Sec. 9001/$149.1 bil/Jan 2011): Starting in 2013, new 40 percent excise tax on “Cadillac” health insurance plans ($8500 single/$23,000 family). Higher threshold ($9850 single/$26,000 family) for early retirees and high-risk professions. CPI +1 percentage point indexed. Longshoremen have been exempted (page 362 of the manager’s amendment)
(Translation? Much higher premiums on any current health plans you own or receive courtesy of your employer. Count on losing a much bigger chunk of your paycheck.)
Employer Reporting of Insurance on W-2 (Page 1996/Sec. 9002/Min$/Jan 2011): Preamble to taxing health benefits on individual tax returns.
Medicine Cabinet Tax (Page 1997/Sec. 9003/$5 bil/Jan 2011): No longer allowable 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 (Page 1998/Sec. 9004/$1.3 bil/Jan 2011): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
Excise Tax on Charitable Hospitals (page 2001/Sec. 9007/Min$/immediate): $50,000 per hospital if they fail to meet new "community health assessment needs," "financial assistance," and "billing and collection" rules set by HHS (updated on page 364 of manager’s amendment).
Tax on Innovator Drug Companies (Page 2010/Sec. 9008/ $22.2 bil/Jan 2010): $2.3 billion annual tax on the industry imposed relative to share of sales made that year.
Tax on Medical Device Manufacturers (Page 2020/Sec. 9009/$19.2 bil/Jan 2010): $2 billion annual tax on the industry imposed relative to shares of sales made that year. Exempts items retailing for <$100. Rises to $3 billion annually in 2017 (updated by page 364 of manager’s amendment). (Look for prices on pharmaceuticals and medical devices to go up. The Democrats in Congress still fail to realize that businesses don't pay taxes..they simply pass them on to their customers.) Tax on Health Insurers (Page 2026/Sec. 9010/$59.6 bil/Jan 2011): $10 billion annual tax on the industry imposed relative to health insurance premiums collected that year. Phases in gradually until 2017. Fully-imposed on firms with $50 million in profits (updated on page 365 of manager’s amendment)
( Like I said,businesses don't pay taxes.Another factor designed to raise your premiums.)
There are also major 'individual mandate' excise taxes as well a hefty hike in the Medicare Payroll Tax, plus a lot of other goodies.
Bottom line? Obama plans to let this dysfunctional bit of theft go through...because once it's in place, he can always 'improve' it later and get the government controlled health care he always wanted anyway.
The renowned bank heist artist Willie Sutton once famously said he robbed banks because 'that's where the money is.' If he were around today with that philosophy, I guarantee you he'd have a prominent place in the Obama Administration.