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Happy New Year: Pay Your Obamacare Taxes

Below is the list of new Obamacare taxes that took affect January 1.

Below is the list of new Obamacare taxes that took affect January 1. (Provided by C Steven Tucker):

1. Surtax on Investment Income ($123 billion/Jan. 2013):  Creation of a new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 single).  This would result in the following top tax rates on investment income: Bill: Reconciliation Act; Page: 87-93

Capital Gains Dividends Other* 2012 15% 15% 35% 2013+ 23.8% 43.4% 43.4%

  *Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations.  It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income.  It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans.  The 3.8% surtax does not apply to non-resident aliens.

2. Hike in Medicare Payroll Tax ($86.8 bil/Jan 2013): Current law and changes:

First $200,000 ($250,000 Married) Employer/Employee All Remaining Wages Employer/Employee Current Law 1.45%/1.45% 2.9% self-employed 1.45%/1.45% 2.9% self-employed Obamacare Tax Hike 1.45%/1.45% 2.9% self-employed 1.45%/2.35% 3.8% self-employed

Bill: PPACA, Reconciliation Act; Page: 2000-2003; 87-93

3. Tax on Medical Device Manufacturers ($20 bil/Jan 2013): Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax.  Exempts items retailing for <$100. Bill: PPACA; Page: 1,980-1,986

4. High Medical Bills Tax ($15.2 bil/Jan 2013): Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  The new provision imposes a threshold of 10 percent of AGI. Waived for 65+ taxpayers in 2013-2016 only. Bill: PPACA; Page: 1,994-1,995

5. Flexible Spending Account Cap – aka “Special Needs Kids Tax” ($13 bil/Jan 2013): Imposes cap on FSAs of $2500 (now unlimited).  Indexed to inflation after 2013. There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.  There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education.  Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. Bill: PPACA; Page: 2,388-2,389

6. Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D ($4.5 bil/Jan 2013) Bill: PPACA; Page: 1,9947. $500,000 Annual Executive Compensation Limit for Health Insurance Executives ($0.6 bil/Jan 2013). Bill: PPACA; Page: 1,995-2,000 For a complete list of all that taxes coming as well as the full impact of Obamacare on Individuals, Taxpayers and Business Owners click here: http://csteventucker.wordpress.com/2012/07/31/1709/ Originally posted: ChampionNews.net

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Tony January 03, 2013 at 02:47 PM
hope n' change has come to America.
Tom Ulbert January 03, 2013 at 07:51 PM
Effect or affect
Doug Daluga January 06, 2013 at 12:28 AM
It's called the Affordable Care Act, not "Obamacare". Passed by both houses of Congress, signed by the President, and upheld by the Supreme Court.
Brad Faxton January 06, 2013 at 03:55 AM
Exactly, you can call it ACA for short. However the hyper extreme preoperative phrase, which I will not utter, is not correct. It is the ACA.
Lennie Jarratt January 06, 2013 at 05:05 AM
Actually Obama is using the term now.

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