Obama Care Brings Many Tax Increases
La Jolla, California (PRWEB) September 27, 2013
TaxConnections Worldwide Tax Blogs (https://taxconnections.com/taxblog), a platform launched on TaxConnections Worldwide Directory of Tax Professionals announces traffic on posts related to Obama Care soars as a result of consumers interest in tax increases associated with the new healthcare plan. With more than one billion consumers going online for tax help each year, TaxConnections Worldwide Tax Blog has grown into a valuable resource for tax information. “Our site traffic increased 20X over the last six months, we are paying close attention to what is trending. Obama Care posts send our traffic soaring through the roof. People want to be informed about the tax increases associated with Obama Care, in a language they can understand, and that is what we give them at TaxConnections,” states Kat Jennings, Founder and CEO of TaxConnections, a niche authority site of tax experts. There are numerous tax hikes that accompany Obama Care that largely affect families and small businesses that include:
1) Investment Income 3.8 Surtax on income earned over $200,000 for single head of households, and $250,00 for income earned on combined households over $250,000. The 3.8% Surtax does not apply to Non-Resident Aliens.
2) Individual Mandate Excise Tax and Employer Mandate Tax, states that anyone not buying “Qualifying Health Insurance” must pay an income surtax of 1%-2.5%. If an Employer does not offer health care coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for all full-time employees. This applies to all employers with fifty or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. It the employee 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).
3) Excise Tax on Comprehensive Health Insurance Policies-Starting in 2018, a 40% tax hike on “ Cadillac” health insurance plans ( $10,200 Single/$27,500 Family). There are higher thresholds for early retirees and high risk professions ( $11,500 Single/$29,450 Family).
4) Black Liquor Tax Hike- This is an increase on a type of bio-fuel that will collect in excess of 24 Billion.
5) Tax on Medical Device Manufacturers- This law imposes a brand new 2.3% excise tax on medical device manufacturers.
6) Tax on Innovator Drug Companies-This $2.3 Billion annual tax on drug companies is imposed relative to shares of sales made that year.
7) High Medical Bills Tax- Currently those facing high medical expenses are allowed a deduction for medical expenses to expenses that exceed 7.5% of their AGI(Adjusted Gross Income). The new provision imposes a threshold of 10% of Adjusted Gross Income.
8)Flexible Spending Account Cap (FSA)- aka Special Needs Kids Tax imposes a cap on FSA of $2500 or more (now unlimited). This imposed cap is creating many problems for special needs kids who need funds to pay for their special needs and education.
9) Medical Cabinet Tax- Americans are no longer able to use Health Savings Accounts(HSA), Flexible Spending Accounts (FSA), or Health Reimbursement Accounts (HRA) pretax dollars to purchase non- prescription, over the counter medicines(except insulin).
10) Elimination of Tax Deductions For Employer- Provided Retirement Rx Drug Coverage- in coordination with Medicare Part D.
11) Codification of “ Economic Substance Doctrine”-This provision allows the Internal Revenue Service( IRS) to disallow completely legal tax deductions and other legal tax minimizing plans just because the IRS deems that the action lacks “ Substance” and is merely intended to reduce taxes owed.
12) Tax on Indoor Tanning Services- New 10% tax on anyone using indoor tanning salons.
13) HSA Withdrawal Tax Hike- Increases additional tax on non-medical early withdrawals from an Health Savings Accounts (HAS) from 10 % to 20%, disadvantaging them relative to IRAs and other tax advantaged accounts which remain at 10%.
14) Annual Executive Compensation Limit For Health Insurance Executives- $500,000
15) Blue Cross/Blue Shield Tax Hike- This special tax deduction for Blue Cross/Blue Shield companies would only be allowed if 85% or more of premium revenues are spent on clinical services.
16) Excise Tax on Charitable Hospitals-This is a $50,000 hospital tax if the hospital fails to meet new community health assessment needs, financial assistance and billing and collection rules set by HHS.
17) Employer Reporting of Insurance on W-2-This is a preamble to taxing health benefits on individual tax returns.
"TaxConnections Worldwide Directory of Tax Professionals, an authority site of tax advisors from around the world is establishing itself as the site attracting a large following," states Kat Jennings. Through it’s innovative technology, the site provides instant online access to a wide range of tax expertise and tax services around the world. Anyone can sign up for a Free Membership on TaxConnections to Find A Tax Professional, Ask Tax Questions (anonymously) and receive Worldwide Tax Blogs at https://www.taxconnections.com/tcUsers/freereg