Huge Decisions Loom for Lawmakers on Obamacare Taxes

obamacare (1)

 

One of the biggest calling cards of the Republican Party for the last several years, including President Donald Trump, has been to repeal the Affordable Care Act, also known as Obamacare. Although Obamacare has faced much opposition throughout its existence, recent polls suggest that most Americans don’t want it repealed, especially if there is nothing to replace it.

Still, republican lawmakers are undeterred in their efforts to scrap it. However, there are several significant taxes issues that must resolved, namely which taxes should they repeal. Make no mistake, republicans hate the Obamacare taxes, but some feel that they should keep them to help pay for their replacement plan. The taxes in question include:

  • Net Investment Income Tax – this would automatically eliminate the 3.8 percent tax on capital gains.
  • Health Insurance Tax – Health insurance providers are forced to pay this annual fee based on their market share.
  • Medicare Surtax – This tax on the wealthy created an extra $7.3 billion for the government, so eliminating it would help anyone earning more than $200,000 (single filer) or $250,000 (joint filer) a year.
  • Cadillac Tax – this is set to begin in 2020, but many lawmakers from bot sides oppose it, as it would be a huge tax on those with high-cost health plans, including many democratic-backed unions.
  • Prescription Drug Tax – repealing this would help businesses that make or import branded prescription drugs and have to pay huge fees for doing so.
  • Tanning Tax – this contributed to many tanning salons going out of business
  • Medical Expenses Deduction Cap – this raised the threshold for deducting medical expenses from 7.5 percent to 10 percent.
  • Flexible Spending & Health Savings Accounts – these placed lower limits on the amounts people can add to them and raised the penalties for using the money on anything other than medical expenses.
  • Mandate Penalties – these are the penalties that people must pay if they choose not to have health insurance.

Each of these taxes could en up on the chopping block, but it remains to be seen which ones will be officially repealed and which ones will survive.

http://thehill.com/policy/finance/317880-gop-faces-big-decision-on-obamacare-taxes

Posted in
Johnathan Law

Real Audio Video | Johnathan Law

  About Johnathan Law Johnathan Law received his formal education in culinary arts. While recovering from a car accident he found he built himself a home theater system- when his family and friends wanted one as well, he decided that it was more fun than working in food services. Johnathan is the cofounder of Real…

How to Change the Culture of an Organization | Prasad Kaipa

  About Prasad Kaipa Prasad has been an advisor and coach focusing on innovation and leadership since 1990 for about 120 C-level executives in Global Fortune 500 companies. Prasad’s unique competence is in helping his clients find their next significant step and take it. He found that unless he helps clients to examine their signature…

Cliff Dochterman

Legacy of Service | Cliff Dochterman

  About Cliff Dochterman Cliff Dochterman served as the World President of Rotary International from 1992-1993. His professional career was spent in the field of higher education administration. As a youth, being motivated by his brother, Cliff became part of the Boy Scouts of America where he obtained the rank of Eagle scout. He has…

Richard Del Monte

Where does Happiness Come From? | Richard Del Monte

  About Richard Del Monte Richard is a CERTIFIED FINANCIAL PLANNER™, Certified Wealth Consultant, and nationally recognized expert on Families and Wealth. Richard has been featured on FOX Business News, The Wall Street Journal, New York Times, Private Opportunities Club, Private Wealth Magazine, Trust & Estates, and Family Wealth Report. A sought after speaker, he…