Sunday, November 22, 2009

"Healthy" Tax Hikes From Senate Democrats

Our friends at Americans for Tax Reform have published a full list of the tax hikes that Senate Democrats passed Saturday night in their so-called "Health Bill." We know, President Obama promised no tax increases at all on the middle class, and most of these hit everybody. We'll hold our breath awaiting his veto. These tax hikes include:

Individual Mandate Tax (Page 324/Sec. 1501/$8 bil): 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
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):  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): 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$): Preamble to taxing health benefits on individual tax returns.

Medicine Cabinet Tax (Page 1997/Sec. 9003/$5 bil): 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): 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): Imposes cap on FSAs of $2500 (now unlimited).

Corporate 1099-MISC Information Reporting (Page 1999/Sec. 9006/$17.1 bil): 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$): $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): $2.3 billion annual tax on the industry imposed relative to share of sales made that year.

Tax of Medical Device Manufacturers (Page 2020/Sec. 9009/$19.3 bil): $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): $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)

Raise "Haircut" for Medical Itemized Deduction from 7.5% to 10% of AGI (Page 2034/Sec. 9013/$15.2 bil) : 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)

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

Blue Cross/Blue Shield Tax Hike (Page 2044/Sec. 9016/$0.4 bil): 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): New 5% excise tax on elective cosmetic surgery to be paid by the surgery patient.

18 comments:

  1. Please, please, please, put one blog entry on here that criticizes military waste of taxpayer money, or at least berates mandatory auto insurance. Until then we can just assume you are disillusioned Republicans.

    ReplyDelete
  2. And we'll just assume that you're a military hating, Obama kool aid drinking Democrat.

    Here's a list of COAST blog posts criticizing fiscally irresponsible Republicans on the local, State, and National levels. Sorry to crush your little inward thinking world, but you're wrong. I don't think COAST will hold their breath waiting for an apology though.

    http://coast-usa.blogspot.com/2009/10/big-taxer-schmidt-booed-at-tea-party.html

    http://coast-usa.blogspot.com/2009/07/sheriff-si-leis-gets-his-99000-yacht.html

    http://coast-usa.blogspot.com/2009/05/more-tafties-try-to-move-up.html

    http://coast-usa.blogspot.com/2009/04/schneider-announces-for-state-senate.html

    http://coast-usa.blogspot.com/2009/03/story-behind-latest-courthouse-brawl.html

    http://coast-usa.blogspot.com/2008/12/big-spending-stevens-convicted-loses.html

    http://coast-usa.blogspot.com/2008/11/tax-and-spend-republican-lovitt-loses.html

    http://coast-usa.blogspot.com/2008/11/as-campaign-faltered-mccain-decried.html

    http://coast-usa.blogspot.com/2008/10/schmidt-backs-pork-laden-bush.html

    http://coast-usa.blogspot.com/2008/09/hell-no-to-bush-billionaire-bailout.html

    http://coast-usa.blogspot.com/2008/06/republicans-sell-out-again-giving.html

    ReplyDelete
  3. Ummmm... so just because I would like to see some "fair and balanced" blogging, I must hate hate the military? I guess I hate State Farm too. If you misread my comment, it said military "waste", not military. My point is this: You won't criticize Halliburton setting fire to trucks that cost taxpayers 80,000 a pop rather than fixing a flat tire, even though Halliburton is contracted by the Pentagon. That is waste, plain and simple. The reason? Because you are disillusioned Republicans who have a broken ideology and will elect any "gee shucks" guy to be President, who will put our youngest and bravest in harm's way and not bat an eye. And thanks for slamming the new Commander in Chief, you are a true lover of the military.

    You can rail against Republicans who aren't " Republican enough", but that's my whole point isn't it? You aren't some new revolutionaries, you are sad and sorry Republicans with a paintjob. And you don't seem to have a problem with mandatory auto insurance, but you will throw a tantrum that some poor bloke who just lost his job to China shouldn't get health coverage. It's your ideology that's broken, thanks for proving my point.

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  4. So if COAST can't criticize every single solitary instance of government wasting money then it shouldn't venture an opinion on anything? That's gotta be one of the dumbest things I've ever heard.

    Thanks for proving my point. You aren't some new Democrat concerned with government waste. You're a kool aid drinking liberal obsessed with pointing out only those instances of wast that you think you can tie to a Republican. You're a big government, great society liberal with a poorly done partisan paintjob.

    Thanks for proving my point, and keep drinking the kool aid.

    PS - I spent 8 years of my life serving my Country in the United States Navy. I'll match my devotion to the military and my country against your fair-weather partisan patriotism any day. Anchors Aweigh!

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  5. That's an impressive list of tax increases! I think I'm going to endorse every one of them.

    ReplyDelete
  6. Bim Turke:
    Yeah, yeah, yeah. You don't know anything about me. You won't go after military waste just like you won't go after farm subsidies. They are sacred cows of socialist programs you don't ever think about because they probably hit too close to home. You won't go after road costs or mandatory auto insurance because it's not what Rush or Glenn Beck told you to. You can't even admit that the military is THE largest social program in the States. My point is this: You guys are not some new vanguards of conservative values, if you were, you might post things that took two steps back from the GOP playbook and come up with some new stategies that actually apply less spending and taxes across the board. Since the beginning of time, our country is the only one that lowered taxes during war time. We basically put Iraq and Afghanistan on credit card. If you guys can't be up front about that, how can anyone trust you with half cent tax levies?

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  7. Bim Turk is a socialist. He spent 8 years receiving paychecks issued from the U S of A. God bless socialism and the mightiest socialist army on the planet!

    ReplyDelete
  8. Anonymous is the typical military hating liberal that hates his country.

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  9. Yeah, this all makes sense. I bring up the fact that Halliburton and KBR are wasting money and I am instantly a country hater who is anti-military. Good character assaults when you can't respond to the issues. Thanks for showing your true colors. Nevermind the fact that H and KBR pocketed money while our boys didn't have properly armored Humvees. I guess my four years to Bim Turk's 8 just makes me a country hater.

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  10. You're breaking our heart anonymous. I guess calling the US military the greatest socialist army on the planet and downing Bim Turke for taking a socialist paycheck in the military was not a "character assault". For a former military member you sure are a whining crybaby.

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  11. Hey liberal kool aid drinking anonymous-
    What have YOU done to effect change when it comes to wasteful military spending? I mean beyond anonymously bitching and moaning on a blog. My guess is nothing, since it's much easier to whine that COAST isn't carrying the load.

    ReplyDelete
  12. Yeah, OK you win. Ignorance rules. Best to you, you're gonna need it.

    ReplyDelete
  13. So I was right and you are doing absolutely nothing proactive other than anonymously bitching and moaning on a blog, as I expected. You're all talk and no walk, content to point out the perceived shortcomings of others while ignoring the your own glaring deficiencies.

    Best of luck to you. You'll need it. Keep drinking the kool aid, and stay thirsty my friend.

    ReplyDelete
  14. Bim Turke is Mark Miller. After getting his ass kisked in the issue 9 debate and subsequent election marky is afraid to post under his own name.

    ReplyDelete
  15. Last week Bim Turk was Jeff Capell. Now it's Mark Miller. Who will it be next week?

    ReplyDelete
  16. Name that anonymous liberalDecember 1, 2009 at 10:04 AM

    Anonymous is merely Portune&Pepper lapdog/Tim Burke lawn boy Caleb Faux. I have proof.

    ReplyDelete
  17. So, let's get this issue straight:
    If you get paid a salary from the government, you aren't a socialist, if and only if that paycheck is for military work. But, if you devote your life to saving lives in a medical institution and get paid from the government, you ARE a socialist.

    Government run programs will always be substandard if they involve health care, but will always be excellent if they are the military.

    If you criticize military waste, you are a liberal who hates America. If you criticize health care waste, you are a patriot.

    If you are for mandatory auto insurance, you are a rational and cogent American.
    If you are for mandatory health insurance, you are a liberal who hates America.

    If you give 4 years of service to your country, you hate your country. If you give 8 years, you love it.

    If you rubber stamp 50 cents of every tax dollar collected for military without question, you are a patriot. If you legislate a 1/2 cent tax levy to educate children, you hate your country.

    ReplyDelete
  18. Still waiting for you to tell us what, if anything that YOU have done besides anonymously bitching and moaning on a blog about COASt not picking up your pet causes.
    We all know, you've done nothing.

    PS - I thought you said I won and wished me the best of luck. Sore loser.

    ReplyDelete

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