Huge Decisions Loom for Lawmakers on Obamacare Taxes
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Obamacare has faced much opposition throughout its existence, recent polls suggest that most Americans don’t want it repealed, especially if there is nothing to replace it.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Each of these taxes could en up on the chopping block, but it remains to be seen which ones will be officially repealed and which ones will survive.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
Three Ways to Improve Your Leadership Potential
Three Ways to Improve Your Leadership Potential For anyone who desires to be a leader, it can be very difficult to sit back and watch others get promoted ahead of him or her. People are not always put in positions of leadership based on ability or credentials. Often, some of the best potential leaders get…
Which Tax Deductions Are Available This Tax Season?
Which Tax Deductions Are Available This Tax Season? Tax time has officially started. That means, if you haven’t already, it’s time to gather up all your important tax documents and information. It might also be a good time to hire an experienced accountant. The Tax Cut and Jobs Act will play a huge role in…
Tax Season Means Scam Season: What to Watch for
Tax Season Means Scam Season: What to Watch for Tax season means a lot of things. It means organized taxpayers are already preparing their returns and getting ready for their refunds. It means disorganized taxpayers are scrambling to find everything they need just to start their returns. It means accountants are busy helping both organized…
How the Falling Market Could Help You Save in Retirement
How the Falling Market Could Help You Save in Retirement The falling stock market has been a real downer for most investors to watch. The massive drops, as well as the volatile nature of the market in recent weeks and months, have left many investors trembling. But as with most bad news, there might be…