Comprehensive List of Obama Tax Hikes

“oh my the pain”peyton  9/8/11

    Which one of these tax hikes will destroy the  most jobs?

Since taking office, President Barack Obama has signed into law twenty-one  new or higher taxes:

1. A 156 percent increase in the federal excise tax on  tobacco:  On February 4, 2009, just sixteen days into his  Administration, Obama signed  into law a 156 percent increase in the federal excise tax on tobacco, a hike  of 61 cents per pack.  The median income of smokers is just over $36,000  per year.

2. Obamacare Individual Mandate Excise Tax (takes effect in  Jan 2014): Starting in 2014, anyone not buying “qualifying” health insurance  must pay an income surtax according to the higher of the following

1 Adult 2 Adults 3+ Adults
2014 1% AGI/$95 1% AGI/$190 1% AGI/$285
2015 2% AGI/$325 2% AGI/$650 2% AGI/$975
2016 + 2.5% AGI/$695 2.5% AGI/$1390 2.5% AGI/$2085

Exemptions for religious objectors, undocumented immigrants, prisoners,  those earning less than the poverty line, members of Indian tribes, and hardship  cases (determined by HHS). Bill: PPACA; Page:  317-337

3. Obamacare Employer Mandate Tax (takes effect Jan.  2014):  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 $2000 for all full-time employees.  Applies to all  employers with 50 or more employees. If any employee actually receives coverage  through the exchange, the penalty on the employer for that employee rises to  $3000. 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). Bill: PPACA; Page: 345-346

Combined score of individual and employer mandate tax  penalty: $65 billion/10 years

4. Obamacare Surtax on Investment Income (Tax hike of $123  billion/takes effect 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*
2011-2012 15% 15% 35%
2013+ (current law) 23.8% 43.4% 43.4%
2013+ (Obama budget) 23.8% 23.8% 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.

5. Obamacare Excise Tax on Comprehensive Health Insurance  Plans (Tax hike of $32 bil/takes effect Jan. 2018): Starting in 2018,  new 40 percent excise tax on “Cadillac” health insurance plans ($10,200  single/$27,500 family).  Higher threshold ($11,500 single/$29,450 family)  for early retirees and high-risk professions.  CPI +1 percentage point  indexed. Bill: PPACA; Page: 1,941-1,956

6. Obamacare Hike in Medicare Payroll Tax (Tax hike of $86.8  bil/takes effect Jan. 2013): Current law and changes:

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

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

7. Obamacare Medicine Cabinet Tax (Tax hike of $5 bil/took  effect Jan. 2011): Americans no longer 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). Bill: PPACA; Page: 1,957-1,959

8. Obamacare HSA Withdrawal Tax Hike (Tax hike of $1.4  bil/took effect Jan. 2011): 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. Bill: PPACA; Page: 1,959

9. Obamacare Flexible Spending Account Cap – aka“Special Needs Kids Tax” (Tax hike of $13 bil/takes effect 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

10. Obamacare Tax on Medical Device Manufacturers (Tax hike  of $20 bil/takes effect 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

11. Obamacare “Haircut” for Medical Itemized Deduction from 7.5% to  10% of AGI (Tax hike of $15.2 bil/takes effect 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

12. Obamacare Tax on Indoor Tanning Services (Tax hike of  $2.7 billion/took effect July 2010): New 10 percent excise tax on Americans  using indoor tanning salons. Bill: PPACA; Page:  2,397-2,399

13. Obamacare elimination of tax deduction for employer-provided  retirement Rx drug coverage in coordination with Medicare Part D (Tax  hike of $4.5 bil/takes effect Jan. 2013) Bill: PPACA; Page:  1,994

14. Obamacare Blue Cross/Blue Shield Tax Hike (Tax hike of  $0.4 bil/took effect Jan. 1 2010): 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. Bill: PPACA; Page:  2,004

15. Obamacare Excise Tax on Charitable Hospitals (Min$/took  effect immediately): $50,000 per hospital if they fail to meet new “community  health assessment needs,” “financial assistance,” and “billing and collection”  rules set by HHS. Bill: PPACA; Page: 1,961-1,971

16. Obamacare Tax on Innovator Drug Companies (Tax hike of  $22.2 bil/took effect Jan. 2010): $2.3 billion annual tax on the industry  imposed relative to share of sales made that year. Bill: PPACA;  Page: 1,971-1,980

17. Obamacare Tax on Health Insurers (Tax hike of $60.1  bil/takes effect Jan. 2014): Annual tax on the industry imposed relative to  health insurance premiums collected that year.  Phases in gradually until  2018.  Fully-imposed on firms with $50 million in profits. Bill: PPACA; Page: 1,986-1,993

18. Obamacare $500,000 Annual Executive Compensation Limit for Health  Insurance Executives (Tax hike of $0.6 bil/takes effect Jan 2013). Bill: PPACA; Page: 1,995-2,000

19. Obamacare Employer Reporting of Insurance on W-2  ($min/takes effect Jan. 2012): Preamble to taxing health benefits on individual  tax returns. Bill: PPACA; Page: 1,957

20. Obamacare “Black liquor” tax hike (Tax hike of $23.6  billion/took effect immediately).  This is a tax increase on a type of  bio-fuel. Bill: Reconciliation Act; Page: 105

21. Obamacare Codification of the “economic substance  doctrine” (Tax hike of $4.5 billion/took effect immediately).   This provision allows the IRS to disallow completely-legal tax deductions and  other legal tax-minimizing plans just because the IRS deems that the action  lacks “substance” and is merely intended to reduce taxes owed. Bill:  Reconciliation Act; Page: 108-113

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