Medical device manufacturers
must collect a new national sales tax
of 2.9%. You will directly pay this tax,
but it will not apply to eyeglasses,
contact lenses or hearing aids.
Employers will no longer receive a
subsidy for providing retiree prescription
drug coverage. Companies
will pay more to provide such benefits
as a result.
(It has already been
announced that AT&T will incur a $1
billion charge, plus $62 million in new taxes
annually because of
have been made regarding
John Deere ($150 million), Caterpillar
($100 million), 3M Company ($90 million)
and AK Steele ($31 million), and
many more companies in the Fortune
500 are expected to make similar
It is widely
expected that Corporate America
will pass these costs onto consumers
in the form of higher prices for
their goods and services,and
in the benefits they provide to their
retired employees (who will in turn
be forced to pay higher health care
costs) or both.
You will not be able to deduct medical expenses
on your tax return until you’ve spent 10%
of your Adjusted Gross Income.
Currently, you can begin deductions
after you spend 7.5% of your AGI.
Therefore, this is a 33% increase in
Contributions to Flexible Spending
Accounts will be capped at
$2,500 per year, and you will no
longer be able to use the money to
buy over-the-counter drugs. This
change will cause some taxpayers
to pay as much as several thousand
dollars more in health care expenses
and in annual income taxes.
If you’re an executive in the health
insurance industry and earn more
than half a million dollars a year,
taxes will effectively double for all
of your income above $500,000.
Employers with more than 50 employees
that do not provide health
insurance to their employees will pay
a $2,000 penalty per employee per
year, starting with the 31st employee
If you do not have health insurance, you and each
member of your household will pay a new tax of 1%
of household income (at least $95 per person per year).
This tax will rise to 2.5% per year (at least $695
per person) by 2016.
Health insurance plans that cost more than $10,200 for
individuals ($27,500 per family) will pay a new
40% tax on any coverage that exceeds the limit.
Plan sponsors will no
doubt pass this cost along to you.