PPACA and Taxes

Direct Taxes on Families

• Medicine Cabinet Tax (Section 9003) ($5 bil/Jan 2011)
• Penalties On HSA Withdrawals (Section 9004) ($1.4 bil/Jan 2011)
• Surtax on Investment Income (Section 1402 – reconciliation) ($123 billion/Jan. 2013)
• Medicare Payroll Tax (Section 9015)($86.8 bil/Jan 2013)
• Raise “Haircut” for Medical Itemized Deduction from 7.5% to 10% of AGI ($15.2 bil/Jan 2013)
• Limits On FSA Contributions (Section 9005)– aka “Special Needs Kids Tax” ($13 bil/Jan 2013)
• Individual Mandate Excise Tax (Section 1501) (Jan 2014)

Taxes on Employers Ultimately Borne by Families

• Employer Mandate Tax (Section 1513) (Jan 2014).
• Excise Tax on Comprehensive Health Insurance Plans ($32 bil/Jan 2018)

Taxes on Health Industry Ultimately Borne by Families

• Excise Tax on Charitable Hospitals (Section 9007) (Min$/immediate)
• Drug Industry Tax (Section 9008)
• Indoor Tanning Tax (Section 10907) ($2.7 billion/July 1, 2010)
• Medical Device Fee (Section 1405 – Reconciliation) ($20 bil/Jan 2013)
• Health Insurance Industry Tax (Section 1406)
• Insurer Excise Tax (Section 9010)
• Blue Cross/Blue Shield Tax Hike (Section 9016) ($0.4 bil/Jan 2010)

Links

• Americans for Tax Reform. Obamacare and Taxes: The Final Tab. Provides explanation and household impact of all new taxes.
• Congressional Research Service. Health-Related Revenue Provisions in the Patient Protection and Affordable Care Act (P.L. 111-148)

News

• ObamaCare Watch, Federal Budget/Deficit has news related to federal taxes and PPACA.