Posted by
Eric Jay on Tuesday, November 03, 2009 6:00:00 AM
Americans for Tax Reform has put out a "comprehensive list" of the taxes that are included in the newest reinvention of Health Care Reform, the 1990 page legislation the the Speaker of the House Nancy Pelosi (D- CA) is thrusting upon the nation. Evidently there will be a vote tomorrow. The House has had less than a week to read over and understand the entire package. This package includes the public option. Recall, on Monday I posted on the government run AP report that 2% of the public would actually sign up for the public option, thus the cost would be negligible (in Washington's eyes) and not add to the staggering debt (projected no to exceed $12 trillion!)
Madame Speaker Pelosi was touting the fact that this new legislation was a manageable $829 billion. You know, in DC a $1.0 trillion is the $1.0 million. I refuse to use the numbers and/or articles from the government run AP, so I found the news at the less than partisan NewsMax.com (wink, wink, nod, nod). You know a couple $100 million here, $100 million there, regardless that is a lot of money. The difference between $829 billion and $1.2 trillion is not a great difference. All of the HealthCare Reforms are not deficit nuetral despite whath the Democrats want to spout.
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House Healthcare Bill Totals $1.2 Trillion
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Monday, November 2, 2009 11:26 PM
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WASHINGTON – The health care bill headed for a vote in the House this week costs $1.2 trillion or more over a decade, according to numerous Democratic officials and figures contained in an analysis by congressional budget experts, far higher than the $900 billion cited by President Barack Obama as a price tag for his reform plan.
While the Congressional Budget Office has put the cost of expanding coverage in the legislation at roughly $1 trillion, Democrats added billions more on higher spending for public health, a reinsurance program to hold down retiree health costs, payments for preventive services and more.
Many of the additions are designed to improve benefits
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Now, I would like to talk about the taxes. Remember that President Obama has promised in the past and continues to hold that he will not raise taxes on those earning $250,000 and less. His promise is ringing hollow today. The taxes that will be raised to fund HealthCare Reform will be devastating not only to the middle class and small to medium sized businesses but to American Capitalism (maybe that is the goal? Throw in Cap and Trade and we will see unemployment soar and the economy go into a tailspin making this past year/year and a half pale in comparison.
Below is the American for Tax Reform's Comprhensive List of Taxes:
COMPREHENSIVE LIST OF ALL TAX HIKES
IN HOUSE GOVERNMENT HEALTH BILL
Employer Mandate Excise Tax
(Page 275): If an employer does not pay 72.5 percent of a single
employee’s health premium (65 percent of a family employee), the employer must pay an excise tax equal
to 8 percent of average wages. Small employers (measured by payroll size) have smaller payroll tax rates
of 0 percent (<$500,000), 2 percent ($500,000-$585,000), 4 percent ($585,000-$670,000), and 6 percent
($670,000-$750,000).
Individual Mandate Surtax
(Page 296): If an individual fails to obtain qualifying coverage, he must pay
an income surtax equal to the lesser of 2.5 percent of modified adjusted gross income (MAGI) or the
average premium. MAGI adds back in the foreign earned income exclusion and municipal bond interest.
Medicine Cabinet Tax
(Page 324): Non-prescription medications would no longer be able to be
purchased from health savings accounts (HSAs), flexible spending accounts (FSAs), or health
reimbursement arrangements (HRAs). Insulin excepted.
Cap on FSAs
(Page 325): FSAs would face an annual cap of $2500 (currently uncapped).
Increased Additional Tax on Non-Qualified HSA Distributions
(Page 326): Non-qualified
distributions from HSAs would face an additional tax of 20 percent (current law is 10 percent). This
disadvantages HSAs relative to other tax-free accounts (e.g. IRAs, 401(k)s, 529 plans, etc.)
Denial of Tax Deduction for Employer Health Plans Coordinating with Medicare Part D
(Page
327): This would further erode private sector participation in delivery of Medicare services.
Surtax on Individuals and Small Businesses
(Page 336): Imposes an income surtax of 5.4 percent on
MAGI over $500,000 ($1 million married filing jointly). MAGI adds back in the itemized deduction for
margin loan interest. This would raise the top marginal tax rate in 2011 from 39.6 percent under current
law to 45 percent—a new effective top rate.
Excise Tax on Medical Devices
(Page 339): Imposes a new excise tax on medical device manufacturers
equal to 2.5 percent of the wholesale price. It excludes retail sales and unspecified medical devices sold to
the general public.
Corporate 1099-MISC Information Reporting
(Page 344): Requires that 1099-MISC forms be issued to
corporations as well as persons for trade or business payments. Current law limits to just persons for
small business compliance complexity reasons. Also expands reporting to exchanges of property.
Delay in Worldwide Allocation of Interest
(Page 345): Delays for nine years the worldwide allocation
of interest, a corporate tax relief provision from the American Jobs Creation Act
Limitation on Tax Treaty Benefits for Certain Payments
(Page 346): Increases taxes on U.S.
employers with overseas operations looking to avoid double taxation of earnings.
Codification of the “Economic Substance Doctrine”
(Page 349): Empowers the IRS to disallow a
perfectly legal tax deduction or other tax relief merely because the IRS deems that the motive of the
taxpayer was not primarily business-related.
Application of “More Likely Than Not” Rule
(Page 357): Publicly-traded partnerships and
corporations with annual gross receipts in excess of $100 million have raised standards on penalties. If
there is a tax underpayment by these taxpayers, they must be able to prove that the estimated tax paid
would have more likely than not been sufficient to cover final tax liability.
COMPREHENSIVE LIST OF ALL TAX HIKES
IN HOUSE GOVERNMENT HEALTH BILL
employee’s health premium (65 percent of a family employee), the employer must pay an excise tax equal
to 8 percent of average wages. Small employers (measured by payroll size) have smaller payroll tax rates
of 0 percent (<$500,000), 2 percent ($500,000-$585,000), 4 percent ($585,000-$670,000), and 6 percent
($670,000-$750,000).
an income surtax equal to the lesser of 2.5 percent of modified adjusted gross income (MAGI) or the
average premium. MAGI adds back in the foreign earned income exclusion and municipal bond interest.
purchased from health savings accounts (HSAs), flexible spending accounts (FSAs), or health
reimbursement arrangements (HRAs). Insulin excepted.
Increased Additional Tax on Non-Qualified HSA Distributions (Page 326): Non-qualified
distributions from HSAs would face an additional tax of 20 percent (current law is 10 percent). This
disadvantages HSAs relative to other tax-free accounts (e.g. IRAs, 401(k)s, 529 plans, etc.)
327): This would further erode private sector participation in delivery of Medicare services.
MAGI over $500,000 ($1 million married filing jointly). MAGI adds back in the itemized deduction for
margin loan interest. This would raise the top marginal tax rate in 2011 from 39.6 percent under current
law to 45 percent—a new effective top rate.
equal to 2.5 percent of the wholesale price. It excludes retail sales and unspecified medical devices sold to
the general public.
corporations as well as persons for trade or business payments. Current law limits to just persons for
small business compliance complexity reasons. Also expands reporting to exchanges of property.
of interest, a corporate tax relief provision from the American Jobs Creation Act
employers with overseas operations looking to avoid double taxation of earnings.
perfectly legal tax deduction or other tax relief merely because the IRS deems that the motive of the
taxpayer was not primarily business-related.
corporations with annual gross receipts in excess of $100 million have raised standards on penalties. If
there is a tax underpayment by these taxpayers, they must be able to prove that the estimated tax paid
would have more likely than not been sufficient to cover final tax liability.
The fact that the ATR has only worked up to page 357 there is likely to be more taxes on the horizon. Hold on to your wallet people. I am sorry to say that this is indefensible.