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Happy New Year: Pay Your Obamacare Taxes

January 1, 2013 By 10 Comments

Below is the list of new Obamacare taxes that take affect today  (Provided by C Steven Tucker):

1. Surtax on Investment Income ($123 billion/Jan. 2013):  Creation of a new, 3.8 percent 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: Bill: Reconciliation Act; Page: 87-93
Obamacaretax


Capital Gains Dividends Other*
2012 15% 15% 35%
2013+ 23.8% 43.4% 43.4%


*Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations.  It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income.  It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans.  The 3.8% surtax does not apply to non-resident aliens.

2. Hike in Medicare Payroll Tax ($86.8 bil/Jan 2013): Current law and changes:

First $200,000
($250,000 Married)
Employer/Employee		 All Remaining Wages
Employer/Employee
Current Law 1.45%/1.45%
2.9% self-employed		 1.45%/1.45%
2.9% self-employed
Obamacare Tax Hike 1.45%/1.45%
2.9% self-employed		 1.45%/2.35%
3.8% self-employed


Bill: PPACA, Reconciliation Act; Page: 2000-2003; 87-93

3. Tax on Medical Device Manufacturers ($20 bil/Jan 2013): Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax.  Exempts items retailing for <$100. Bill: PPACA; Page: 1,980-1,986

4. High Medical Bills Tax ($15.2 bil/Jan 2013): Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  The new provision imposes a threshold of 10 percent of AGI. Waived for 65+ taxpayers in 2013-2016 only. Bill: PPACA; Page: 1,994-1,995

5. Flexible Spending Account Cap – aka “Special Needs Kids Tax” ($13 bil/Jan 2013): Imposes cap on FSAs of $2500 (now unlimited).  Indexed to inflation after 2013. 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 thousands of 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. Bill: PPACA; Page: 2,388-2,389

6. Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D ($4.5 bil/Jan 2013) Bill: PPACA; Page: 1,9947. $500,000 Annual Executive Compensation Limit for Health Insurance Executives ($0.6 bil/Jan 2013). Bill: PPACA; Page: 1,995-2,000

For a complete list of all that taxes coming as well as the full impact of Obamacare on Individuals, Taxpayers and Business Owners click here: http://csteventucker.wordpress.com/2012/07/31/1709/

 

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About Lennie Jarratt

Small Business Owner, Education Watchdog, FOIA expert, Founder of For Our Children's Future

  • Wolf

    What is even more interesting than the huge cost increases, service restrictions and destruction of Medical innovation is that the ObamaCare law no longer has standing under the US Constitution based on the Supreme Court ruling yet the media and Public Sector continues to move forward as if it is a law. The Constitution specifically spells out in the “Separation of Powers Clause” the power and authority of each Branch of Government. When the Supreme Court ruled that ObamaCare could be Constitutional if the word “Penalty” was changed to “Tax”, it suspended the Law or its standing under the Law until Congress made the changes and passed those changes. For under the Constitution only Congress can change and amend a law, and the Supreme Court can strike complete phrases or sections but it cannot amend or change the wording. Clearly at this point ObamaCare has no Constitutional standing under the Law of the US. It is fascinating that no legal scholar has addressed the major issue which is as plain as day and any first year Constitutional law student should comprehend.