COMPREHENSIVE LIST OF TAX HIKES IN SENATE GOVERNMENT HEALTH BILL: H.R. 3590
http://www.atr.org/breaking-full-list-tax-hikesbr-senate-a4227
Individual Mandate Tax-$8 billion (Page 324/Sec. 1501): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the following schedule (capped at 8 percent of income):
Single Single + 1 Single + 2<
2014 $ 95 $ 190 $ 285
2015 $ 350 $ 700 $ 1050
2016 etc. $ 750 $ 1500 $ 2250
Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS).
Employer Mandate Tax-$28 billion (Page 348/Sec. 1513): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $750 for all full-time employees. Applies to all employers with 50 or more employees. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer).
Excise Tax on Comprehensive Health Insurance Plans-$149.1 billion (Page 1979/Sec. 9001): Starting in 2013, new 40 percent excise tax on “Cadillac” health insurance plans ($8500 single/$23,000 family). Higher threshold ($9850 single/$26,000 family) for early retirees and high-risk professions. CPI +1 percentage point indexed. From 2013-2015, the 17 highest-cost states are 120% of this level.
Employer Reporting of Insurance on W-2 (Page 1996/Sec. 9002/Min$): Preamble to taxing health benefits on individual tax returns.
Medicine Cabinet Tax-$5 billion (Page 1997/Sec. 9003): No longer allowable to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).
HSA Withdrawal Tax Hike-$1.3 billion (Page 1998/Sec. 9004): Increases additional tax on nonmedical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
FSA Cap-$14.6 billion (Page 1999/Sec. 9005): Imposes cap on FSAs of $2500 (now unlimited).
Corporate 1099-MISC Information Reporting-$17.1 billion (Page 1999/Sec. 9006): Requires businesses to send 1099-MISC information tax forms to corporations (currently limited to individuals), a huge compliance burden for small employers.
Excise Tax on Charitable Hospitals (Page 2001/Sec. 9007): $50,000 per hospital if they fail to meet new “community health assessment needs,” “financial assistance,” and “billing and collection” rules set by HHS.
Tax on Innovator Drug Companies-$22.2 billion (Page 2010/Sec. 9008/): $2.3 billion annual tax on the industry imposed relative to share of sales made that year.
Tax on Medical Device Manufacturers-$19.3 billion (Page 2020/Sec. 9009): $2 billion annual tax on the industry imposed relative to shares of sales made that year. Exempts items retailing for <$100.
Tax on Health Insurers-$60.4 billion (Page 2026/Sec. 9010): $6.7 billion annual tax on the industry imposed relative to health insurance premiums collected that year.
Eliminate tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D-$5.4 bil (Page 2034/Sec. 9012)
Raise “Haircut” for Medical Itemized Deduction from 7.5% to 10% of AGI-$15.2 billion (Page 2034/Sec. 9013): Waived for 65+ taxpayers in 2013-2016 only
Hike in Medicare Payroll Tax-$53.8 billion (Page 2040/Sec. 9015)
Blue Cross/Blue Shield Tax Hike-$0.4 billion (Page 2044/Sec. 9016): The special tax deduction in current law for Blue Cross/Blue Shield companies would only be allowed if 85 percent or more of premium revenues are spent on clinical services
Tax on Cosmetic Medical Procedures-$5.8 billion (Page 2045/Sec. 9017): New 5% excise tax on elective cosmetic surgery to be paid by the surgery patient.
NOTE: H. R. 3590 also (1) Increases penalties for failure to file a partnership or S corporation tax return, and (2) amends the Corporate Estimated Tax Shift of 2009 to increase corporate estimated tax payments in the third quarter of 2014 by an additional 0.5%.
