Thursday, February 25, 2010

Obama Recycles


....Healthcare plans - that is.
(Same Stuff different day)

Read the Obama's healthcare plan draft for yourself (if you dare)

Yeah - it's just more of the same and much more in taxes.

Americans For Tax Reform put out their analysis.

They say:
"Overall proposal is a net tax hike of $748 billion over 10 years "

"The Obamacare plan raises net taxes on families making less than $250,000 by $136 billion" (so much for his promis not to tax families making less than $250,000)


ATR says this:

Title I (Net tax hike of $85 billion)

  • Same individual credit as Senate bill (-$102 billion)

  • Same small business credit as Senate bill (-$38 billion)

  • Reinsurance program ($121 billion)

  • Individual and employer insurance mandate penalties ($43 billion)

  • Associated effects on coverage provisions ($61 billion)


Title IX
(Net tax hike of $663 billion)

  • Corporate 1099-MISC information reporting ($17 billion): Requires businesses to send 1099-MISC information tax forms to corporations (currently limited to individuals), a huge compliance burden for small employers
  • Black liquor credit repeal ($24 billion): This is an excise tax hike which is contained in the President's budget
  • Economic substance doctrine ($4 billion): This would require taxpayers to prove to the IRS that a perfectly-legal tax deduction or strategy is "economically substantial," and not simply a way to pay less in taxes
  • Medicare payroll tax hike ($87 billion): Increases Medicare payroll tax rate from 2.9 percent to 3.8 percent on wages and self-employment income which exceeds $200,000 ($250,000 married)
  • Apply Medicare tax to unearned income ($334 billion): Would apply the current 2.9 percent Medicare tax rate to unearned income in households earning at least $200,000 or $250,000 married (interest, dividends, capital gains, rent, royalties, and passive investment in pass-throughs like S-corporations and partnerships)
  • Cadillac plan excise tax ($125 billion): 40 percent excise tax on health insurance plans to the extent they exceed $27,500 in cost for family plans, and $10,200 for single plans
  • Innovator medicine company tax ($22 billion): $2.3 billion annual tax on the industry imposed relative to share of sales made that year
  • Medical device manufacturer tax ($19 billion): $2 billion annual tax on the industry imposed relative to shares of sales made that year. Exempts items retailing for <$100. Rises to $3 billion annually in 2017
  • Health insurance company tax ($60 billion): $10 billion annual tax on the industry imposed relative to health insurance premiums collected that year. Phases in gradually until 2017. Fully-imposed on firms with $50 million in profits
  • Tanning tax ($3 billion): New 10% excise tax on indoor tanning salons
  • Increase HSA distribution penalty by 10 percentage points ($1 billion): 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.
  • $2500 FSA cap a.k.a. special needs kiddie tax ($13 billion): Imposes cap on FSAs of $2500 (now unlimited). Indexed to inflation after 2011
  • Employer-provided retiree Rx deduction repeal ($5 billion)
  • Medical itemized deduction "haircut" raised from 7.5 to 10 percent of AGI ($15 billion)
  • $500,000 executive compensation limit for health insurance companies ($1 billion)
  • Miscellaneous tax relief (-$2 billion)

Interestingly, the draft release from the White House seemingly lacks the following tax hikes which were contained in the Senate bill:

  • Employer reporting of insurance costs on W-2 (no revenue effect)
  • Excise tax on charitable hospitals (no revenue effect)
  • Blue Cross/Blue Shield tax hike ($400 million)
  • "Medicine cabinet tax" (limiting the purchase of non-Rx, over-the-counter medicines from HSAs, FSAs, and HRAs, $5 billion)



Thanks for recycling...
now let's put this disaster into the dumpster where it belongs.

1 comment:

Ellery said...

At least he is consistent.