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Saturday, September 29, 2012

Obamacare tax hikes: Will Sebelius mention them?

Obamacare tax hikes: Will Sebelius mention them?
Manchester Union Leader

Kathleen Sebelius, President Obama’s secretary of Health and Human Services, is in New Hampshire today and tomorrow to campaign for the President. We think it’s a good bet that Sebelius will enter and leave New Hampshire without mentioning any of the tax increases imposed by Obamacare, the onerous law she is tasked with administering.

The taxes, fees and effective tax increases are numerous and onerous. First, the mandate. Beginning in 2014, the IRS will tax every adult who does not have health insurance. The penalty starts at $95 or 1 percent of income for singles, whichever is higher. Two years later, it jumps to $695 for an individual and $1,360 for a couple, or 2.5 percent of income.

Some taxes fall on individuals earning $200,000 or more and families earning $250,000 or more. For these Americans, next year the act imposes a 3.8 percent Medicare tax on investment gains.

Currently, if you have high medical expenses, you can deduct them from your taxes when they exceed 7.5 percent of your income. Obamacare raises that to 10 percent for everyone but seniors. If you have a tax-free Flexible Spending Account (FSA) for health care purchases, you can contribute as many pre-tax dollars as you want. Starting next year, contributions are capped at $2,500.

In 2018, health insurance plans with premiums of at least $10,200 for a single or $27,500 for a family will be hit with a 40 percent excise tax.

Then, of course, there is the 10 percent tanning bed tax, in effect since 2010, and the 2.3 percent medical device tax that kicks in next year.

These are but some of the costs imposed by this new law. In case Sebelius forgets to mention them, now you know they exist.

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