Senators are seriously considering keeping in place some ObamaCare taxes for longer than the House-passed bill would as they seek to draft healthcare legislation that can pass their chamber with a simple majority.
Republicans are looking to slowly phase out extra federal funds for Medicaid expansion, beef up the new tax credits for buying insurance and add money for opioid abuse treatment — but they’ll have to pay for it to ensure the bill passes muster.
That’s because the Senate healthcare bill must save at least as much money as the House’s legislation.
The Republican campaign promise to end Obamacare could make it harder for millions of poor and middle-class Americans to buy health insurance. But it would also mean a big tax cut for the wealthy, with richest 0.1% pocketing an extra $197,000 on average, according to a new report from the Tax Policy Center.
It’s that wonderful time of year again: tax season. Some 150 million American businesses and individuals are expected to file taxes by this month, covering thousands of arcane provisions that determine how much you and your family will pay Uncle Sam and state governments this year.
But this filing season is the second in which Americans may have yet another—and bigger—tax bill to worry about: the one forced on us by the Affordable Care Act. It serves as a stark reminder of all the ways this law continues to harm American families and businesses, six years after it was signed.
If Obamacare doesn’t bill you or your estate, following death, it will while you’re alive. Some of the charges for ACA-based or related coverage and care may cause some to feel an appreciable level of sticker shock when all is said and done. Especially during and after tax season.
A recent report on CNBC (online, Apr. 13) relates the story of Mike Highsmith – who “was one many Obamacare financial-aid recipients in 2014 who didn’t know their plans were being subsidized,” according to CNBC healthcare reporter Dan Mangan.
Mangan’s CNBC report quotes Highsmith as saying, at one point, “I wasn’t very happy.” The reason for the 61 year old former flight attendant’s unhappiness? Following his taxes having been prepared, “he has to pay back every cent of the $6,624 in federal subsidies that helped pay the lion’s share of his HealthCare.gov-purchased plan,” according to CNBC.
Yet, for those with real incomes being lower than what they had calculated while applying for health coverage, they will fall under the category of not having to pay money back at tax time.
CNBC also says, “[a]bout 5 percent will neither owe back any part of their subsidy nor get more money in the way of a subsidy for last year.“
A report by Robert W. Wood, of Wood LLP.com, on a recent post for Forbes online (Feb. 17) asks how many ACA taxes are there – in reality? A most important question, since an appreciable segment of Obamacare , is also indeed about that – taxes and /or fines – (depending on one’s political philosophy). Either way it adds up to money you have to pay as an individual or employer.
Wood, a prominent tax attorney, points out, “Yet for most of the approximately 85 percent of Americans who have health insurance and who make less than $250,000 a year, you can relax. Most of the new taxes are unlikely to hurt you or your pocketbook. Even so, it’s easy to be overwhelmed, which is one reason the IRS has a 21-page Publication 5187 on the Healthcare Law: What’s New for Individuals and Families.”
Some of these taxes include ones possibly not well-known. They are:
As President Obama did his first victory lap over reported sign-up levels for the ACA, not everyone joined the chorus line. The reason is heightened concern over what some view as an Obamacare Tax, the expensive healthcare issue in the room businesses will face. It may add up to $100 billion over 10 years. Observers feel the tax could hurt those Obamacare claims to help. “The Affordable Care Act is here to stay”, Obama triumphantly trumpeted in the rose garden. The president, in spite of well-publicized glitches, calls it progress. Obama added: “Many of the tall tales that have been told about this law have been debunked. There are still no death panels. Armageddon has not arrived. Instead, this law is helping millions of Americans, and in the coming years it will help millions more.” In a Wall Street Journal Op-Ed, Bernie Marcus, co-founder and co-chairman and CEO of Home Depot claims: “small and mid-sized businesses will bear the brunt of the health insurance tax”, known as HIT in the business community. The worst may come yet for business, according to critics closely watching the impending healthcare tax.
The National Federation of Independent Business (NFIB) projects the health insurance tax will add an additional $475.00 per year on the average individual (purchased) family policy.
People who use subsidies to help pay for their Obamacare policies may get a nasty shock at tax time, when the Internal Revenue Service could hit them with a big demand to repay the money.
While it’s in the law, it’s still likely to make plenty of Obamacare subscribers angry at the IRS.
A new job, promotion, or anything that causes income to go up could result in a demand to return the tax credits, if the life change isn’t reported, according to the new rules.
Read more at Newsmax
Author says the Obamacare tax on medical is proving to be a jobs killer. Small manufacturers and distributors of medical equipment are chafing under the new tax, saying they can no longer invest in their once-innovative firms and may resort to layoffs because of the 2.3 percent tax on everything from pacemakers to artificial joints. Now, lawmakers from both parties are looking for ways to ax the tax.
The U.S. Chamber of Commerce and the National Federation of Independent Business, or NFIB, along with medical device makers, health insurers, retailers and restaurants are together lobbying to gain Senate Democratic support for overturning $130 billion in taxes that will be used to fund the Obamacare law, and repealing a mandate requiring employers to provide insurance coverage for full-time workers or pay a fine.
Democrats and Republicans have been able to agree that they don’t like a feature of Obamacare: The 2.3-percent excise tax on medical devices meant to raise $20 billion over 10 years to help pay for extending health care coverage to the uninsured under the Affordable Care Act (ObamaCare).