obamacare-tax-hikes

$1 trillion in new Healthcare taxes hits Americans Jan 1st

Among the wide ranging new regulations, taxes and costs associated with Obamacare, a portion of its effect hit Americans today in the form of twenty new or higher taxes.  Highlighted below are some of the more devastating increases to the tax burdens of typical Americans.

Starting today, a new 2.3% tax will hit medical device manufactures.  “In addition to killing small business jobs and impacting research and development budgets, this will increase the cost of your health care – making everything from pacemakers to artificial hips more expensive,” wrote the Americans for Tax Reform organization.

Americans who enjoy a Flexible Spending Account to help pay for basic healthcare items will now face a new $2500 per year federal cap on expenses.  No cap on FSA spending was enforced at the federal level last year, although employers typically enforced their own spending caps (~$2500 for individuals and ~$4000 for families).

Last year, Americans were allowed to deduct from their taxes medical expenses that exceeded 7.5% of their Adjusted Gross Income, or AGI.  Today, that deduction threshold has been increased to 10%, requiring Americans to pay more for medical expenses before deductions can be made.

Lastly, Americans earning more than $200,000 annually (or $250,000 for married couples) will see a 3.8% increase in Medicare taxes, which will directly effect self-employed workers and small business owners in the United States.

Once again, Americans who already pay the majority of federal income taxes will shoulder the majority of the new burdens imposed on Americans for “cheaper” healthcare under the new Obamacare law.

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