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  • Tax, Not Treat: Pelosi’s Halloween Nightmare

    Just in time for Halloween, Speaker Nancy Pelosi (D-CA) and House Democrats gave birth to a giant, 1,990-page spawn of health care reform, lovingly titled the Affordable Health Care for America Act. Lurking within, though, are 13 new tax hikes (yes, 13) that will strike at the heart of the American people.

    Americans for Tax Reform laid them out in detail; The Foundry includes them below:

    Employer Mandate Excise Tax (Page 275): If an employer does not pay 72.5 percent of a single employee’s health premium (65 percent of a family employee), the employer must pay an excise tax equal to 8 percent of average wages. Small employers (measured by payroll size) have smaller payroll tax rates of 0 percent (<$500,000), 2 percent ($500,000-$585,000), 4 percent ($585,000-$670,000), and 6 percent ($670,000-$750,000).

    Individual Mandate Surtax (Page 296): If an individual fails to obtain qualifying coverage, he must pay an income surtax equal to the lesser of 2.5 percent of modified adjusted gross income (MAGI) or the average premium. MAGI adds back in the foreign earned income exclusion and municipal bond interest.

    Medicine Cabinet Tax (Page 324): Non-prescription medications would no longer be able to be purchased from health savings accounts (HSAs), flexible spending accounts (FSAs), or health reimbursement arrangements (HRAs). Insulin excepted.

    Cap on FSAs (Page 325): FSAs would face an annual cap of $2500 (currently uncapped).

    Increased Additional Tax on Non-Qualified HSA Distributions (Page 326): Non-qualified distributions from HSAs would face an additional tax of 20 percent (current law is 10 percent). This disadvantages HSAs relative to other tax-free accounts (e.g. IRAs, 401(k)s, 529 plans, etc.)

    Denial of Tax Deduction for Employer Health Plans Coordinating with Medicare Part D (Page 327): This would further erode private sector participation in delivery of Medicare services.

    Surtax on Individuals and Small Businesses (Page 336): Imposes an income surtax of 5.4 percent on MAGI over $500,000 ($1 million married filing jointly). MAGI adds back in the itemized deduction for margin loan interest. This would raise the top marginal tax rate in 2011 from 39.6 percent under current law to 45 percent—a new effective top rate.

    Excise Tax on Medical Devices (Page 339): Imposes a new excise tax on medical device manufacturers equal to 2.5 percent of the wholesale price. It excludes retail sales and unspecified medical devices sold to the general public.

    Corporate 1099-MISC Information Reporting (Page 344): Requires that 1099-MISC forms be issued to corporations as well as persons for trade or business payments. Current law limits to just persons for small business compliance complexity reasons. Also expands reporting to exchanges of property.

    Delay in Worldwide Allocation of Interest (Page 345): Delays for nine years the worldwide allocation of interest, a corporate tax relief provision from the American Jobs Creation Act

    Limitation on Tax Treaty Benefits for Certain Payments (Page 346): Increases taxes on U.S. employers with overseas operations looking to avoid double taxation of earnings.

    Codification of the “Economic Substance Doctrine” (Page 349): Empowers the IRS to disallow a perfectly legal tax deduction or other tax relief merely because the IRS deems that the motive of the taxpayer was not primarily business-related.

    Application of “More Likely Than Not” Rule (Page 357): Publicly-traded partnerships and corporations with annual gross receipts in excess of $100 million have raised standards on penalties. If there is a tax underpayment by these taxpayers, they must be able to prove that the estimated tax paid would have more likely than not been sufficient to cover final tax liability.

    Posted in Obamacare, Ongoing Priorities [slideshow_deploy]

    13 Responses to Tax, Not Treat: Pelosi’s Halloween Nightmare

    1. Pingback: Phil Hare’s New, Improved “Affordable Health Care Of America Act” « QC Examiner

    2. Pingback: Pelosi’s Poison Pill: H.R. 3962 « The Western Experience

    3. J.C. Hughes, Texas says:

      Nancy needs to take all her heavy handed private sector control and tax hikes back to California. I'm sure they'll love her for it, NOT! The biggest border threat we're facing here in Texas these days is originating from the Eastern banks of the Potomac river. Where is that dang border security when you truly need it?

    4. Carol, AZ says:

      Pleae vote OUT THIS LUDICROUS WOMAN N.Pelosi.

      She gushes and MEOWS infront of the camera as if she 'brained stormed' this proposal, "IMPROVONG the lives of millions of Americans," adding

      "it will be paid for by the super rich."

      Do Americans not get this fiscal nightmare?

      The cost of doing Buss. for this increased medicare proposal on steroid, will translate to $4000. per household just for starters.

      A GOv't run health care program is a Gov't run program;

      No free choice, uncontroled spending of our tax dollars.

      WE ARE ALREADY 1.8 TRILLION DOLLARS IN BUDGET DEFICIT THIS YEAR TRANSFERRED TO $6700. PER EA H.H.

      ON-TOP OF THAT THEY WANT TO DUMP THE CURRENT PROPOSAL FURTHER INCREASING THE DEFICIT ALONG WITH ALL THE PORK WE DON'T KNOW ABOUT ATTTACHED TO THIS BILL THAT HARDLY ANYONE HAS READ .

      We already know how dysfunctional the current Gov't run programs are;

      RATIONED CARE OF THE H1NI VACCINE.

      FRAUD ON MANY LEVELS , NO ACCOUTABILITY, NO VERIFICATION OF THE MILLIONS PAID OUT EA MONTH.

      THIS LEADERSHIP HAS CLEARLY LOOKED THE OTHER WAY ALONG WITH REED AND PELOSI SUPPORT, WHEN ANY OTHER LEADERSHIP, DEMS & REPS HAVE DEMANDED ACCOUNTABILITY AND OVERVIEW.

      WE NEED TO REFORM THE CURRENT SYS. FIRST WITH THE INS CO.WHO'S PROFIT MARGINS ARE AROUND 400% EA MONTH .

      WHEN THE PRES. SPEAK ABOUT "AFTER THIS PROPOSAL IS PASSED WE WILL REFORM THIS SYS."

      IF YOU BELIEVE THAT,I HAVE WATER FRONT PROPERTY HERE IN AZ I CAN SELL YOU.

    5. joan, connecticut says:

      Pelosi, hasn't a clue to how this health care abomination will affect the average citizen, and furthermore she doesn't care. In her eyes we are the little people who have to go along with whatever whim Congress deems best for America. I am tired of the politicians who sit in Congress and dream up laws that protect and reward their lobbyist friends, while ignoring the needs of the US citizens who elected them. It's time for term limits and for Congress to stop trashing our constitution! Great men wrote the constitution, but Washington has lost sight of this great document and are bending it to suit their agendas. Write and call your Senators and your representatives weekly,and let them know exactly how you feel!We need to keep our nation strong and we cannot let up in our efforts to do so. We have a voice,but we have to make it heard in Washington, lest they forget we exist.

    6. Tim Az says:

      This is a fine example of the cruelty of liberalism. Evil in its purest form.

    7. frank renzo mechani says:

      I am firmly convinced that it is time for this whole administration to be removed from office.

    8. Jack, Aurora, Ohio says:

      It is a crime we are being led down the yellow brick road to socialism. God help our children who will never live in a free country again.

    9. DiAnne, MN says:

      Spot on Frank from Mechanicsburg! One other thing to add; Earth to Nancy!

    10. philip says:

      Polosi the wicked witch she a criminal deceiveing , lieing slandering and hideing coward behind doors trying to sneak a health care bill by the american people who donot want her goverment control health care she ha no respect for america or it's people Polosi is selfish self centered greedy anti american Obama lap dog, and commuist supporter. We can not aford the cost of 1900 pages of her socialist health plan we need to get together and vote these people out

    11. Jeff, California says:

      With any luck, Jan. 2011 will See a new policy in the senate. Binding and gagging of Biden, and the hogtying of Obama. And in the House, Pelosi and Reid, Running for cover. After all if they achieve nothing, more than the repeal of all of this, it won't take long, and it won't cost much.

      PS: Yes there actually is ONE! Conservative left in California.

    12. Jeff, California says:

      It's AMAZING, the ideas Liberals come up with, to get people to spend money, that they don't have !!

      The Stock Market dipped (-37%)in the Fall 1929, but then it ticked back up, till the Fall of 1930 it didn't bottom out (-90%) until the Summer of 1932. If history repeats it self, 2011 could be a very bad Year!!!

    13. clown masks says:

      Halloween 2010 is coming fast getting started maybe with a zombie mask might be right for you

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