ObamaCare Tax Increases: Onward And Forever Upward
May
21
Written by:
Del Meyer
05/21/2017 2:49 PM
Tax Prof Blog: ObamaCare Tax Increases Are Double Original Estimate
The Joint Committee on Taxation recently released a 96 page report on the tax provisions associated with Affordable Care Act. The report describes the 21 tax increases included in Obamacare, totaling $1.058 trillion – a steep increase from initial assessment, according to the Tax Prof Blog. The summer 2012 estimate is nearly twice the $569 billion estimate produced at the time of the passage of the law in March 2010.
| Provision |
2010 Estimate, 2010-2019, $billion |
2012 Estimate 2013-2022, $billion |
| 0.9% payroll tax on wages and self-employment income and 3.8% t tax on dividends, capital gains, and other investment income for taxpayers earning over $200,000 (singles) / $250,000 (married) |
210.2 |
317.7 |
| “Cadillac tax” on high-cost plans * |
32 |
111 |
| Employer mandate * |
52 |
106 |
| Annual tax on health insurance providers * |
60.1 |
101.7 |
| Individual mandate * |
17 |
55 |
| Annual tax on drug manufacturers/importers * |
27 |
34.2 |
| 2.3% excise tax on medical device manufacturers/importers* |
20 |
29.1 |
| Limit FSAs in cafeteria plans * |
13 |
24 |
| Raise 7.5% AGI floor on medical expense deduction to 10% * |
15.2 |
18.7 |
| Deny eligibility of “black liquor” for cellulosic biofuel producer credit |
23.6 |
15.5 |
| Codify economic substance doctrine |
4.5 |
5.3 |
| Increase penalty for nonqualified HSA distributions * |
1.4 |
4.5 |
| Impose limitations on the use of HSAs, FSAs, HRAs, and Archer MSAs to purchase over-the-counter medicines * |
5.0 |
4 |
| Impose fee on insured and self-insured health plans; patient-centered outcomes research trust fund * |
2.6 |
3.8 |
| Eliminate deduction for expenses allocable to Medicare Part D subsidy |
4.5 |
3.1 |
| Impose 10% tax on tanning services * |
2.7 |
1.5 |
| Limit deduction for compensation to officers, employees, directors, and service providers of certain health insurance providers |
0.6 |
0.8 |
| Modify section 833 treatment of certain health organizations |
0.4 |
0.4 |
| Other Revenue Effects |
60.3 |
222** |
| Additional requirements for section 501(c)(3) hospitals |
Negligible |
Negligible |
| Employer W-2 reporting of value of health benefits |
Negligible |
Negligible |
| Total Gross Tax Increase: |
569.2 |
1,058.3 |
* Provision targets households earning less than $250,000.
** Includes CBO’s $216.0 billion estimate for “Associated Effects of Coverage Provisions on Tax Revenues” and $6.0 billion within CBO’s “Other Revenue Provisions” category that is not otherwise accounted for in the CBO or JCT estimates. |
| Source: Joint Committee on Taxation Estimates, prepared by Ways and Means Committee Staff |
Donna Andrews March 13, 2013 at 9:28 AM
Reply
Onward and Forever Upward!
Feedback . . .
Subscribe MedicalTuesday . . .
Subscribe HealthPlanUSA . . .
Leave a Reply