Last week, one of my more politically minded clients mentioned that he did not get one of the alleged tax-cuts made during the Obama administration. With less than 3 weeks before the presidential election, the hot air over taxes is going to get louder before it subsides. If income taxes are something you want to know the truth about, you are better off to consult with your tax preparer.
I am not qualified to discuss income tax matters. I am qualified to talk about changes that are coming to health insurance that are tied to Obamacare. There are several new “taxes” that are scheduled to start after the election. Depending on your political allegiance, you are either a supporter or detractor of the new taxes.
The odds are that you and your spouse make less than $250,000 and will not pay any additional income tax. However, there are other taxes that you may pay.
MEDICAL DEVICE TAX
The Patient’s Protection and Affordable Care Act, aka Obamacare, requires manufacturers of “Medical Devices” to pay additional fees/taxes starting in 2013.
Maybe I am wrong but it is hard for me to believe that manufacturers will not pass those additional fees/taxes down to the people who use their products in the form of higher prices.
This tax will not affect everyone. The only ones who will be affected are those who are forced to buy a wheelchair, hospital bed or any other medical device for a loved one.
MEDICARE PAYROLL TAX
There is no line item on your income tax return for Medicare taxes. You do not pay this on April 15 unless you are self-employed. If you are a W-2 employee, your employer will be required to withhold an even greater percent of your pay-check for an increased Medicare tax.
People who are already retired and on Medicare will not pay this new tax. It is reserved for those who earn a pay-check.
Like the Medical Device fee/tax, this new expense is not directed at the public. Only health insurance companies have to pay this. If your health insurance company does not pass this expense down to you, you will not have to pay it.
Unfortunately, everything that I have seen indicates that most, if not all, health insurance companies anticipate that they will pass the new federal fee/tax down to their members. It is anticipated that premiums will increase 2-4% once the new fee is payable.
Obamacare does not stop with the “taxes” in 2013. In June of 2012 the U.S. Supreme Court upheld the mandate in Obamacare for all Americans to purchase an “Essential Benefits” health insurance plan or pay a penalty. According to the Supreme Court, congress does not have the authority to force Americans to purchase a product. However, congress does have the authority to levy taxes.
Mr. Obama continues to swear that the penalty in Obamacare is not a tax. However, the Supreme Court disagrees. According to them, the Obamacare penalty is a tax.
If you purchase an acceptable health insurance policy in 2014, you will not pay any additional taxes. However, if you choose not to purchase a health insurance policy that is acceptable to the federal government, you will be required to pay a “Penalty” or “Tax.” It all depends on what branch of government you believe.
- What Will Happen To Health Insurance Companies Under Obamacare? (theinsurancebarn.wordpress.com)
- Five Obamacare Promises to Remember (heritage.org)
- Companies Cut Hours And Jobs To Dodge Obamacare (thedaleygator.wordpress.com)
- Top Five Worst Obamacare Taxes Coming in 2013 (tarpon.wordpress.com)
- Chart of the Week: Poor, Middle Class Hit by Obamacare Mandate Tax (heritage.org)
- Bend Over, America: Here Are The Five Worst ObamaCare Taxes You’ll Start Paying In 2013 (constitutionclub.org)