The Ten Hidden Taxes of ObamaCare
Penalties on Individuals
Individuals must pay a yearly tax penalty of $695 or up to 2.5% of their annual income if they cannot prove they have purchased a government-approved health care policy.
Penalties on Families
Families must pay a yearly tax penalty of $347 per child – up to $2,250 per family – if parents cannot prove they have purchased a government-approved health care policy.
Penalties on Employers
Business owners with more than 50 employees must buy health insurance approved by the government or, if at least one employee receives a tax credit, pay yearly penalty of $2,000 per employee.
Tax on “Cadillac” Health Plans
Starting in 2018, a 40% annual tax on health care plans with a value of $10,200 for individuals and $27,500 for families will be imposed.
Medicine Cabinet Tax
Americans would no longer be able 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).
Tax on Medical Aid Devices
A new 2.9% tax on medical aid devices with some exemptions for certain personal use items.
Medicare Tax Increase
Single people earning $200,000 or more and couples earning $250,000 or more must pay an additional 0.9% in Medicare taxes.
Tax on Investment Income
A 3.8% annual tax on investment income of individuals making $200,000 or more and couples making $250,000 or more. The new tax is not indexed to inflation so more people will be subject to it each year. Seniors on fixed incomes and people with IRAs and 401(k) plans will be hit particularly hard.
Reduces Tax Deductions for Medical Expenses
Increasing the threshold for claiming the itemized deduction for medical expenses from 7.5% to 10% means fewer people will be able to take advantage of the deduction and will therefore pay higher income taxes.
Tax on Tanning
Imposes a 10% tax on services at tanning salons. Business owners will collect the tax from customers and send it to the Federal government. This appears to be the first Federal sales tax in the United States.
