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  • Top 10 Most Expensive Obamacare Taxes and Fees

    Yesterday was tax day, serving as a special reminder of how big the federal government has become. As Heritage has warned before, Obamacare is on track to makes things a lot worse.

    The President’s health law will be partially paid for by tax increases and the creation of new taxes. When Obamacare first passed, the Joint Committee on Taxation estimated that its tax hikes would total $502 billion over the next 10 years. But most of the new, higher taxes don’t kick in until later in the decade, which means that once all of the law is fully implemented, the taxpayers’ tab will be much bigger than originally estimated.

    A new study by the Joint Economic Committee (JEC) revealed today that Obamacare will impose higher taxes totaling $4 trillion between now and 2035, with substantial hits on working Americans. That works out to more than $1.7 trillion over a decade—more than triple the original 10-year score.

    Below is a list of 10 of Obamacare’s most costly taxes and fees, drawn from research by Heritage tax policy expert Curtis Dubay:

     1.     Hospital Insurance Tax. Beginning in 2013, Obamacare increases the Hospital Insurance (HI) portion of the payroll tax from 2.9 percent to 3.8 percent for families earning more than $250,000 a year and for single filers earning more than $200,000 annually. The increased HI tax is also applied to investment income for the first time. The 3.8 percent surtax on investment income is the most economically damaging tax in Obamacare. And these tax increases won’t remain just on families making more than $250,000 a year for long. As the JEC explains, this tax is not indexed to inflation: “This means that in just 10 years from now, the so-called ‘high-income’ thresholds will have effectively ratcheted down to $152,000 and $190,000 in today’s dollars.” This tax increase amounts to $210 billion between 2013 and 2019.

     2.     Mandate Penalties. In 2014, Obamacare’s individual and employer mandates go into effect, forcing individuals to purchase coverage and employers to offer coverage to their workers. The penalties paid in association with these mandates are an estimated $65 billion between 2014 and 2019.

     3.     Health Insurance Provider Fee. Starting in 2014, Obamacare imposes an annual fee on health insurance providers based on each company’s share of the total market. This totals a $60 billion tax hike between 2014 and 2019.

     4.     “Cadillac” Tax. In 2018, Obamacare puts a new 40 percent excise tax on “Cadillac” health plans, meaning plans that cost more than $10,200 for an individual and $27,500 for families. However, this tax is not indexed to medical inflation, causing it to eventually tax “Honda” plans at this rate as well. The JEC points out that “[t]he bulk of revenues from the ‘Cadillac’ tax would not be paid by platinum health insurance plans, but rather by employees who are forced to exchange tax-free health insurance benefits for taxable wages after employers reduce or eliminate health insurance.” This tax amounts to $32 billion in higher taxes in the first two years of its implementation.

    5.     Prescription Drug Fees. Since 2011, Obamacare has put an annual fee on manufacturers and importers of branded drugs based on each individual company’s share of the total market. Between 2011 and 2019, this will amount to a $27 billion tax increase.

    6.     Ethanol Tax. In 2010, Obamacare excluded ethanol from the existing cellulosic biofuel producer tax credit. This will hike taxes $24 billion from 2010–2019.

    7.     Medical Device Tax. Beginning in 2013, Obamacare imposes a 2.3 percent excise tax on medical device manufacturers. This will raise taxes on patients needing medical devices, who will ultimately pay the tax through higher prices, by $20 billion from 2013 to 2019.

    8.     Business Regulation Costs. Beginning in 2012, Obamacare raises corporate taxes through stricter enforcement, because businesses will be required to report more information on their business activities. This will raise taxes $17 billion from 2012 to 2019.

    9.     Reducing Medical Deductions. In 2013, Obamacare raises the floor on itemized medical deductions from 7.5 percent of adjusted gross income to 10 percent, meaning Americans must spend 2.5 percent more of their income before they get a medical deduction, costing $15 billion from 2013 to 2019.

    10.  FSA Limits. Starting in 2014, Obamacare limits the amount of pre-tax dollars that taxpayers can deposit in flexible savings accounts (FSAs) to $2,500 a year. This results in an extra $13 billion in taxes from 2014 to 2019.

    These are only 10 of Obamacare’s 18 tax increases. The economic damage from these tax hikes is one of many reasons Congress needs to repeal Obamacare and start from scratch to properly reform the health care system.

    To learn about all of Obamacare’s taxes, read Obamacare and New Taxes: Destroying Jobs and the Economy.

    Posted in Featured, Obamacare [slideshow_deploy]

    42 Responses to Top 10 Most Expensive Obamacare Taxes and Fees

    1. Stirling says:

      Obamacare on it's own is a form of Class Warfare, as the policies of this administration have been geared toward moving the economy away from a free market capitalist system, to that of a Government Centered "Nany State" economy.. When over 50% of a nations economy is run thru a governments complete control, you no longer have a free market, but a socialist model. The "Tax" system (and taxes in genral) is just the means of changing the control of the market to these ends, by taking more of the peoples freedoms and income. Once people understand that any "Taxes" are a threat to "freedom" (as our founders realized.) it's easy to understand why Obamacare (and it's burdensome taxes) is wrong for this country.

      • guest says:

        If this was true then Medicare would apply to everyone. It could be worse but it is patterned after Rommneycare.

        • Stirling says:

          Romneycare isn't much better, but you at least can move out of Massachusetts to avoid it.. Obamacare is Romneycare at the federal level..Medicare was never meant to be used to the extent that it is.. (was meant as a poor peoples safety net.) Obamacare makes it a nationwide net of poor medical care for all, whether you have the money to pay for better care or not, you have only one choice, and no regress to file complaint or sue..

        • Out of the Ashes says:

          Yes and no. The mandate was there yes. But the taxes on all these businesses no. The taxes on medical devices and drug companies, no.
          Besides what Massachusetts had was designed for the state of Massachusetts and not Idaho or California. One size does not fit all and as the story shows it does not reduce the cost of care. In fact it increases the cost.

      • Bob says:

        Ummm, what' a "Nany"?

        • Zod says:

          Just say "communism" and you'll have it all figured out.

        • Stirling says:

          thanks Bob… Have you seen Greece's economy lately? people rioting in the street over the government running out of money to pay for their "Nany State." Personally 3-5 years at best until we look like they do, or until the government declare marshall law and your rights are flushed down the toilet like our money that will be worth less then the toilet paper you now enjoy..

          Sorry for the corse tone, but all I've read and heard from people who flee socialist, communist, and opressive regeims tell the stories of how they fled to America to escape the very same thing that our president is doing in changing our country now.. It starts with things that just don't seem right, government takes more and more, and before they know it freedom is gone..

    2. For $50 billion a year couldn't you just buy insurance for the 30 million people.

      • Bobbie says:

        It's so inefficient to have to apply insurance at another cost when these people are getting it for free anyway? there's no reason people can't pay their way without having everyone else not involved foot their bill?

    3. Yeah, compare that to What the Rep. are proposing. Do your research and there comments they made in the past and who is funding them. Both parties are corrupted, greed etc. But if your living in the middle class and below bracket. You need to WAKE UP and do your own research. Dont be brainwashed by the media etc. Its a scary world we live in now a days. Everything is coming out and use an open mind commen sense on whats going on.

      • Keith Gagner says:

        @Peter: Maybe you should "research" how to spell the word "common" and the proper use of the words "there, their and they're" before you try and attack another person's valid arguments, it just makes you looks stupid.

    4. How much longer does unemployment get extended?

    5. What a Mess this has caused!!!

    6. If we really cared about the 20 or so million Americans that do not have health care, wouldn't it be way cheaper to give pay for their health insurance!?!?!

      • panamacarol says:

        No kidding!!!

      • Rachel says:

        much cheaper. This was never about giving people cheap or free healthcare. It's always been about CONTROL and growing the government to a size that freedoms will cease to exist…what few are still left.

    7. Jeff Evenson says:

      Sadly, the only way companies are going to avoid these new taxes, regulations, and or penalties due to Obamacare… is to outsource discreet or process manufacturing to Mexicali or Tijuana. Outsource their service and billing to India.

      Why has union memberhip dwindled to about 11% of total workforce? They outpriced themselves. Companies outsourced overseas or 3rd-partied their billing, IT services, telemarketing, marketing, etc.

      A workforce is becoming too expensive to maintain. Like it or not, companies will be adjusting to remain profitable or sell-out or close their doors. WIP and raw marterials used to be the largest held asset. Employees their largest fixed liability. Obamacare will end up forcing companies to outsource in order to reduce their exposure to this mandate. And, too many people are under the misunderstanding that Insurance will be FREE. It is a mandate. A head of household will be required to be taxed upto 10% of his salary to cover his family if he works for a company with less than 50 employees, which are currently exempt.

      • Stedy says:

        Companies with less than 50 employees will actually receive tax credits in order to provide healthcare to their employees.
        The tax penalty you would pay for not carrying insurance would actually come out to about $95 a year.
        Jobs have been outsourcing for a long time, but mostly because developing countries have no labor laws and its always cheaper to exploit workers.

        So yeah, you know… facts.

    8. RecklessProcess says:

      Totalitarian leftism is facist by nature. Democrats want totalitarian facism. It is what they crave and it will destroy the US. They know it.

      • Stedy says:

        Totalitarian rightism is fascist by definition.

        • Out of the Ashes says:

          From Merriam Webster dictionary
          political philosophy, movement, or regime (as that of the Fascisti) that exalts nation and often race above the individual and that stands for a centralized autocratic government headed by a dictatorial leader, severe economic and social regimentation, and forcible suppression of opposition.
          This would seem to indicate a the type of government that is taking place in this country. Really text book from the leftist manual. It arose from Italy when Mussolini who was originally a socialist determined the people were too stupid to follow and by force established a state run government where industry was cowered through fear of violence or repression by the government. The people lost all of their rights.
          It is closely connected to National Socialism – Nazi. In this case more of an emphasis is placed on the dominance of the state in the people's lives and every facet is controlled by the central government.

    9. Jr. says:

      Congress, the senate as well as the president & V.P. all need to have to live by the same laws that they pass for "we the people". The're "special" insurance and all of the "perks" they recieve as well as getting a full retirement from just 1 term in office should be stopped. All politicians should be limited to NO MORE than 2 terms in office, the same as the president! They get in and set up their own individual business's and vote for their own benefit and that of those special few that helped them get elected. These politicians are elected to voice the will of "We the people" so far NOT ONE OF THEM has got the guts to stand for the truth and whats right. I'm so mad at these so called represenatives of the peoplethat, "I could chew up nails and spit out tacks"

    10. Jr. says:

      What ever happened to living within your means? Expose obama care and delete it from the books before we are stuck with providing for illegals, and those too sorry to work and expect the government to keep them up. Ain't it a shame that illegals and almost anybody can come to America and get a FREE college education but those of us who are TRUE RED WHITE and BLUE CITIZENS of the UNITED STATES of AMERICA can't afford to go to college and can't get help because we're over the income level. They won't figure your necessary monthly expenses or a child with medical problems because "you make too much money" This is a FLAWED SYSTEM.

    11. Kevin McCullough says:

      The graph lists the amounts in "Millions" …. Shouldn't it be "Billions"? WTH?

    12. Kevin Beck says:

      Please be careful with terms on this. Obamacare is NOT any type of health-care reform plan; it is only a reset in how medical care is paid for. I realize the terminology has already been set, but we can't rely on out-dated terms to discuss this draconian disaster of dynamic proportions.

    13. Reasonable Doubt says:

      The Democrats are destroying us. Pure and simple. New entitlements at any cost means a redistribution of mediocrity and equalized misery. They call this social justice. It is, at its core , anti-American, constitutional republic shredding – Euro style collectivism .

    14. Let us not forget the tax that is not a tax. 3.5% of the sale price of your home when you sell it that goes to Obamacare. This is in addition to all the other fees and taxes imposed. So this is 3.5% more money out of your hard earned dollars and into the Obama coffers. Wouldn't you rather have the money in your pocket?

      • Lynn A. says:

        This would apply ONLY if your profit exceeds the $250K/$500K exclusion (single/married, respectively) AND your taxable income exceeds the $200K/$250K threshold. Therefore, this will not apply in most circumstances, unless you live in a high cost area.

    15. charles b says:

      that investment income means if you sell your house there will be 3.8% on it

    16. Jerome Borden says:

      We need to send a true TEA party congress back to replace the current crop of ne'er do wells. Then, they can drop a Repeal Obama-care bill on the President's desk shortly after Inauguration Day.

      Those at the bottom of the income range get hurt the most by this monstrosity. Killing the "catastrophic" medical care plans while at the same time limiting HSAs really sticks it to people doing entry level jobs and guarantees misery.

    17. Blair Franconia, NH says:

      Taxmageddon's next year.

    18. fred says:

      what about the tax you will pay if you sell your home after 2013??

    19. OLDDUDE says:

      Tax and spend is the democratic parties way to do business its your money they spend so why do they get better health care and are not included in the healthcare bill now law.only non union and Ge are excluded along with comgress why is that???

    20. Peg Slingluf says:

      I believe the time has come to consider, seriously, the idea of a third party. Both the of the major parties, could care less about the citizens they are supposed to represent. First we have everything Obama and cohorts, has shoved down our throats, while the Republicans have been to weak and cowardly to do as they promise. After all none of the people on both sides must protect their own interests. Term limits are needed, but also true campaign contribution reform. We the people are largely to blame, because we have been too comfortable and apathetic to even bother to vote. I know that if left unmonitored a third party, will fall in the same routine, that is why it is urgent that those of us who are of age start to hold the politicians accountable, and not allow the media to tell us who to vote for.

    21. tessa says:

      A shame Obama didnt have the foresight to see the mess his ridiculous HC would result in. Many people CHOOSE not to have HC in favor of playing the odds, fancy cars etc. Those of us who have been more responsible can't carry the world on our shoulders. Aren't we doing plenty by not being a burden to anyone? His Socialist views retard responsibility and encourage those who live for handouts.

      • alisha says:

        Unfortunately, Obama does have the foresight to see. He knows exactly what he's doing….in this and his other destructive policies. Our Congress is failing us. Checks and balances are in our system for a reason and this is a perfect opportunity for it to work to control this lunatic…. At least the contempt of Holder is a start. Now let's see where it goes from here. We better pray that Romney isn't lying his way through his campaign like Obama did and flip-flops on us if he wins. Our future is dark, I'm afraid. I have little hope. Too much corruption on both sides. There can be no super powers in a one world system. They are destroying us on purpose.

    22. Jerry Kaplan says:

      Mourning in America.

    23. EMily Fox says:

      Read this and weep.

    24. Julio Caraballo says:

      Just to let you know that the FSA account limits starts in 2013 and not 2014 as you state. I normally have $4500 in my FSA account but am now limited to a cap of $2500. I just got a $2000 tax increase without having any say so. Voters for Obama, be careful what you wish for as the consequences will hit you hard.

    25. bil says:

      And I am a French Model. It's on the internet.

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