The Affordable Care Act is designed to change the landscape of modern healthcare, but did you know that Obamacare means sweeping new taxes for the American public? Although expanded healthcare coverage will be provided at moderate prices, Obamacare will introduce twenty new taxes that will cost American taxpayers over half a trillion dollars over the next ten years.

1. $ NEGLIGIBLE (2010)
Excise Tax on Charitable Hospitals
$50,000 PER HOSPITAL if they fail to meet
new “community health assessment needs,”
“financial assistance,” and “billing and collection”
rules set by HHS 21
$ NEGLIGIBLE (January 2012)
Employer Reporting of Insurance on W-2
Preamble to taxing health benefits on INDIVIDUAL TAX RETURNS 22
$0.6 BILLION (January 2013)
$500,000 Annual Executive Compensation Limit for
Health Insurance Executives
$0.4 BILLION (2010)
Blue Cross/Blue Shield Tax Hike
Special tax deduction for Blue Cross/ Blue Shield
companies allowed only if 85% OR MORE OF
PREMIUM REVENUES are spent on clinical services. 20
$4.5 BILLION (2010)
Codification of the Economic
Doctrine
IRS CAN DISALLOW completely legal tax
deductions and other tax-minimizing plans. 16
$1.4 BILLION (January 2011)
HSA Withdrawal Tax Hike
Increases additional tax on NON-MEDICAL
EARLY WITHDRAWALS FROM AN HAS
from 10% to 20% 18
$2.7 BILLION (July 2010)
Tax on Indoor Tanning Services
10% excise tax on Americans using INDOOR TANNING SALONS 17
$5 BILLION (January 2011)
Medicine Cabinet Tax
Purchase of Non-Prescription and over-the-counter
medicines no longer allowed with: 14
» Health Savings Accounts (HAS)
» Flexible Spending Account (FSA)
» Health Reimubrsement (HRA) pre-tax dollars
$4.5 BILLION (January 2013)
Elimination of Tax for Employer-Provided Retirement Rx Drug
Coverage in Coordination with Medicare Part D
$15.2 BILLION (January 2013)
High Medical Bills Tax
Taxpayers who face HIGH MEDICAL EXPENSES
will only be allowed a DEDUCTION FOR
EXPENSES to the extent they EXCEED 10% of
adjusted gross income (AGI), up from 7.5%. 12
$13.2 BILLION (January 2013)
Flexible Spending Account Cap
CONTRIBUTIONS TO FSAS ARE REDUCED
to $2,500 from $5,000 per plan year. 13
FSA CAP
$2500
11
This law imposes a
NEW 2.3% EXCISE
TAX
$20 BILLION (January 2013)
Tax on Medical Device Manufacturers
Medical device
manufacturers EMPLOY
360,000 PEOPLE IN 6000
plants across the country.
$22.2 BILLION (2010)
Tax on Innovator Drug Companies
$2.3 BILLION ANNUAL TAX on the industry imposed
relative to share of sales made that year 10
$10
Billion
$10
Billion
$23.6 BILLION (2010)
“Black Liquor”Tax Hike
Tax increase on a type of BIO-FUEL
$32 BILLION (January 2018)
Excise Tax on Comprehensive Health Insurance Plans
NEW 40% EXCISE TAX
On “Cadillac” health insurance 8
$10,200/SINGLE $27,500/FAMILY
Early retirees and high-risk professionals
$11,500/SINGLE $29,450/FAMILY
CPI +1 percentage point indexed
7
9
15
19
$65 BILLION* (January 2014)
Individual Mandate Excise Tax
*Combined total with Employer Mandate Tax
$65 BILLION* (January 2014)
Employer Mandate Tax
*Combined total with Individual Mandate Excise Tax
Starting in 2014, any individual NOT BUYING “qualifying” health insurance
MUST PAY an income surtax according to the higher of the following: 3
2014
ADULT
1% AGI / $95 1% AGI / $190 1% AGI / $285
2015 2% AGI / $325 2% AGI / $650 2% AGI / $975
2016 2.5% AGI / $695 2.5% AGI / $1390 2.5% AGI / $2085
$60.1 BILLION (January 2014)
Tax on Health Insurers
Annual tax ON THE INDUSTRY IMPOSED relative to
health insurance premiums collected that year 6
APPLIES TO 50+ EMPLOYEES $400
$600
30-
60DAYS
60
+
DAYS
Beginning in 2015, an employer
must offer coverage or pay a
$2,000 PENALTY 4
for each
full-time employee. 5
TAX PER EMPLOYEE WHEN
EMPLOYER REQUIRES WAITING
PERIOD FOR HEALTH COVERAGE
$123 BILLION (January 2013)
Surtax on Investment Income
New 3.8% SURTAX ON INVESTMENT INCOME
earned in households making at least $250,000
($200,000 single) 1
BONDS
STOCKS
$86.8 BILLION (January 2013)
Hike in Medicare Payroll Tax 2
1
2
3
4
5
6
7
9
10
11
12
13
14
15
16
17
18
19
20
8
‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13
ObamaCare
THE TAXING TRUTH ABOUTTHE TAXING TRUTH ABOUT
20 NEW OR HIGHER TAXES on
American families and small businesses.
$500 billion+ in tax hikes
(over the next 10 years).
Resources
http://www.atr.org/full-list-obamacare-tax-hikes-listed-a7010#ixzz1zTXuZUYl
http://blog.heritage.org/2012/08/20/obamacares-18-new-tax-hikes/
http://www.bbdcpa.com/articles/tax-provisions-in-new-patient-protection-and-affordable-care-act/
BROUGHT TO YOU BY
SM
1 Reconciliation Act, Page: 87-93
2 PPACA, Reconciliation Act, Page: 2000-2003; 87-93
3 Exemptions for religious objectors, undocumented
immigrants, prisoners, those earning less than the poverty
line, members of Indian tribes, and hardship cases
(determined by HHS). PPACA, Page: 317-337
4 Applies only if at least one full-time employee receives a
premium tax credit or cost-sharing reductions. If any
employee actually receives coverage through the
exchange, the penalty on the employer for that employee
rises to $3000. PPACA, Page: 345-346
5 Not counting the first 30 employees
6 Phases in gradually until 2018. Fully-imposed on firms
with $50 million in profits. 9 PPACA, Page: 1,986-1,993
7 PPACA, Page: 1,941-1,956
8 An unusually expensive health insurance plan that that
carries premiums higher than $8,000 for individuals or
$21,000 for families.
9 Reconciliation Act, Page: 105
10 PPACA, Page: 1,971-1,980
11 Exempts items retailing for <$100. PPACA, Page:
1,980-1,986
12 Taxpayers ages 65+ can still use the old 7.5% threshold
in 2013-2016 only. PPACA, Page: 1,994-1,995
13 PPACA, Page: 2,388-2,389
14 PPACA, Page: 1,957-1,959
15 PPACA, Page: 1,994
16 Applies if the IRS deems that the action lacks
“substance” and is merely intended to reduce taxes owed.
Reconciliation Act, Page: 108-113
17 PPACA, Page: 2,397-2,399
18 This disadvantages them relative to IRAs and other
tax-advantaged accounts, which remain at 10%. PPACA,
Page: 1,959
19 PPACA, Page: 1,995-2,000
20 PPACA, Page: 2,004
21 PPACA, Page: 1,961-1,971
22 PPACA, Page: 1,957
Bill References and Exemptions: