COMPREHENSIVE LIST OF ALL TAX HIKES IN SENATE [HR3590] GOVERNMENT HEALTH BILL

COMPREHENSIVE LIST OF ALL TAX HIKES
IN SENATE [HR3590] GOVERNMENT HEALTH BILL

Individual Mandate Tax (Page 324/Sec. 1501/$ 8 bil/Jan. 2014):
 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 & greater
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 (Page 348/Sec. 1513/$28 bil/Jan. 2014):
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 (Page 1979/Sec. 9001/$149.1 bil/Jan. 2013): 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$/Jan. 2011):
Preamble to taxing health benefits on individual tax returns. 

Medicine Cabinet Tax (Page 1997/Sec. 9003/$5 bil/Jan. 2011):
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 (Page 1998/Sec. 9004/$1.3 bil/Jan. 2011):
Increases additional tax on non-medical 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 (Page 1999/Sec. 9005/$14.6 bil/Jan 2011):
Imposes cap on FSAs of $2500 (now unlimited).
Corporate 1099-MISC Information Reporting (Page 1999/Sec. 9006/$17.1 bil/Jan. 2012):
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/Min$/immediate):
$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 (Page 2010/Sec. 9008/$22.2 bil/Jan. 2010):
$2.3 billion annual tax on the industry imposed relative to share of sales made that year. 

Tax on Medical Device Manufacturers   (Page 2020/Sec. 9009/$19.3 bil/Jan. 2010):
$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 (Page 2026/Sec. 9010/$60.4 bil/Jan. 2010):
$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 (Page 2034/Sec. 9012/$5.4 bil/Jan. 2011) 

Raise “Haircut” for Medical Itemized Deduction from 7.5% to 10% of AGI   
(Page 2034/Sec.9013/$15.2 bil/Jan. 2013):
Waived for 65+ taxpayers in 2013-2016 only $500,000 Annual Executive Compensation Limit for Health Insurance Executives (Page 2035/Sec. 9014/$0.6 bil/Jan. 2013) 

Hike in Medicare Payroll Tax (Page 2040/Sec. 9015/$53.8 bil/Jan. 2013):

Current law and changes:

	Wages (Employer/Employee)	Self-Employment Net Income
Current Law and New Rate on First $200,000 ($250,000 MFJ)	1.45%/1.45%	2.9%
New Rate on Amount Which Exceeds $200,000 ($250,000 MFJ)	1.45%/1.95%	3.4%

The 0.5% new rate addition is not deductible for the self-employment tax adjustment. The new HI tax threshold is not indexed for inflation. 

Blue Cross/Blue Shield Tax Hike (Page 2044/Sec. 9016/$0.4 bil/Jan. 2010):
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 (Page 2045/Sec. 9017/$5.8 bil/Jan. 2010):
New 5% excise tax on elective cosmetic surgery to be paid by the surgery patient 11/23/09 For more information, contact ATR Tax Policy Director Ryan Ellis at rellis@atr.org

AND THIS IS JUST THE BEGINNING  - WILL BE PUBLISHING THE IRS MANDATES SHORTLY