Dems pull biggest taxpayer heist in history
Courtesy of President Obama, Speaker Nancy Pelosi, Sen. Harry Reid and the Democrats in Congress (only Democrats, not one Republican), below are the new taxes you and I are facing in years to come, as detailed by the nonpartisan Tax Foundation.
Wherever you see fees and taxes on various businesses, manufacturers and industries, put your name in the place of those corporations, including insurance companies, because you and I will be paying those fees and taxes in the form of higher prices for goods and services:
The $940 billion healthcare reform legislation passed by the House of Representatives Sunday night contains Medicare spending cuts along with significant tax increases scheduled to take place over the next 10 years. A new Tax Foundation Fiscal Fact outlines the timeline of all tax provisions and highlights those that will increase or decrease revenue by more than $10 billion.
The major tax provisions include:
Retroactive to Jan. 1, 2010:
• Small Business Tax Credit for certain small businesses (those meeting certain criteria) providing health insurance to employees (retroactive to Jan. 1, 2010). In 2013, restricted only to insurance purchased through an exchange and only available for two consecutive years
• Exclusion of unprocessed fuels from the cellulosic biofuel producer credit (retroactive to Jan. 1, 2010)
Scheduled to go into effect in 2011:
• Impose annual fee on manufacturers and importers of branded drugs ($2.5 billion for 2011, $2.8 billion per year for 2012 and 2013, $3.0 billion per year for 2014 through 2016, $4.0 billion for 2017, $4.1 billion for 2018, and $2.8 billion for 2019 and thereafter)
Scheduled to go into effect in 2012:
• Require information reporting on payments to corporations
Scheduled to go into effect in 2013:
• Limit health flexible spending arrangements in cafeteria plans to $2,500; indexed to CPI-U after 2013
• Impose 2.3 percent excise tax on manufacturers and importers of certain medical devices
• Raise 7.5 percent AGI floor on medical expenses deduction to 10 percent; AGI floor for individuals age 65 and older (and their spouses) remains at 7.5 percent through 2016
• Broaden Medicare Hospital Insurance Tax Base for High-Income Taxpayers — additional HI tax of 0.9 percent on earned income in excess of $200,000/$250,000 (unindexed), and Unearned Income Medicare Contribution on 3.8 percent on investment income for taxpayers with AGI in excess of $200,000/$250,000 (unindexed)
• Impose Fee on Insured and Self-Insured Health Plans; Patient-Centered Outcomes Research Trust Fund (expires after 2019)
Scheduled to go into effect in 2014:
• Impose annual fee on health insurance providers ($8 billion in 2014, $11.3 billion in 2015 and 2016, $13.9 billion in 2017, $14.3 billion in 2018, and indexed to medical cost growth thereafter); based upon firm’s market share starting in 2013
• Excise Tax (i.e., penalty) on Individuals Without Essential Health Benefits Coverage
• Excise Tax (i.e., penalty) on Employers Not Providing Health Insurance Coverage to Employees (Shared Responsibility for Employers)
• Refundable Tax Credit Providing Premium Assistance for Coverage Under a Qualified Health Plan
Scheduled to go into effect in 2018
• 40 percent excise tax on health coverage in excess of $10,200/$27,500 (subject to adjustment for unexpected increase in medical costs prior to effective date) and increased thresholds of $1,650/$3,450 for over age 55 retirees or certain high-risk professions, both indexed for inflation by CPI-U plus 1 percent; adjustment based on age and gender profile of employees; vision and dental excluded from excise tax; levied at insurer level; employer aggregates and issues information return for insurers indicating amount subject to the excise tax; nondeductible.
This information is available online at www.taxfoundation.org/news/show/26037.html.
Welcome to the Democrats’ brave new world.