New Health Care Law – 7 New Taxes
7 New Taxes or Fees To Cover New Health Care Law
Beginning in 2014, the expanded coverage for Obamacare under the new health care law will essentially kick in and approximately thirty million (30 million) individuals who have no medical insurance will be brought into the fold. When this expanded coverage begins, insurance companies will have to accept all applicants, regardless of their medical condition. No one can be declined.
In addition to this, just about every American citizen will have to be covered by medical insurance. They will essentially have three choices – receive coverage through their employer – receive coverage from a government program – or purchase medical insurance on their own.
The new health care law won’t require most individuals to remit additional funds to the Internal Revenue Service; however, the approximately two percent of Americans who are considered wealthy, will get hit the hardest, starting in 2013.
About two thirds, or approximately twenty million (20 million) individuals, will start receiving various tax credits in 2014 that will provide them assistance in paying the insurance premiums. Let’s look now and try to determine how and who will pay for this expanded coverage. Taxes and fees will kick in and it’s estimated that this will provide approximately seven hundred billion (700 billion) over a ten year period.
- Beginning January 1, 2013, higher income households will see a .9 % increase in Medicare Tax plus a 3.8% direct tax on investment income. Higher income households is defined as individuals with a modified adjusted gross income (MAGI) of $200,000.00 or more and a married couple filing jointly with $250,000.00 or more.
- Beginning January 1, 2014, any company who employs fifty (50) or more individuals, and does not offer medical insurance coverage, will be penalized if one or more of those employees is covered by a government subsidized policy. The possible penalty is $2,000.00 for each employee, with the first thirty (30) employees exempt from penalty.
- The health care industry, primarily firms that manufacture certain medical equipment, are faced with a 2.3% new tax on gross sales, not net profit. Many over the counter items such as eyeglasses, contacts, hearing aids, and prosthetics are exempt. However, other items from tongue depressors to pacemakers, and other implants are not exempt. Both parties are trying to have this tax repealed.
- Approximately eight billion ($8 billion) will be collected from insurance companies in 2014 as an annual fee under the new health care law.
- In 2011, the first year for this fee, two and one half billion ($2.5 billion) was collected from pharmaceutical companies who were importing or manufacturing name brand drugs.
- Starting in 2014, it’s estimated that approximately six million (6 million) individuals simply will not apply for medical insurance. They will be subject to tax penalties that are graduated over three years, or on a percentage of income. These fines will be paid on the tax returns and will raise about six point nine billion ($6.9 billion) in 2016.
- Those individuals who frequent indoor tanning facilities began paying a 10% sales tax back in 2010. Over a ten (10) year period, expectations are to raise about one and one half billion ($1.5 billion). That’s assuming that these operations stay in business. More and more medical studies show that ultraviolet light exposure increases the risk of skin cancer.
There are approximately twenty-eight million (28 million) individuals who use indoor tanning facilities, and they are predominantly women under thirty (30) years of age. We believe that these numbers could drop significantly if stronger medical evidence develops. The new health care law will be quite expensive.