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Obamacare has faced much opposition throughout its existence, recent polls suggest that most Americans don’t want it repealed, especially if there is nothing to replace it.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Each of these taxes could en up on the chopping block, but it remains to be seen which ones will be officially repealed and which ones will survive.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

/GROCO
Posted in

Believe it or Not, So Far the IRS Is Refunding More Money This Year

It’s a rarity that anyone ever has anything good to say about the IRS; just as it’s a rarity that the federal tax agency has good news for taxpayers. However, according to recent reports, the IRS does have some very good news to share in regards to tax returns so far in 2015. While earlier…

IRS Guilty of Questionable Hiring and Rehiring Practices

How confident are you that the IRS is going to handle your tax return properly? Even if you’ve already filed, this latest news could affect you. According to new reports, the IRS apparently used some questionable hiring practices as it prepared to begin reviewing the roughly 150 million individual tax returns it expected to receive…

Tax Season Got You Down? Blame Obamacare

What do you hate the most about taxes? Is it the simple fact that you have to file them? Is it the fear of being chosen for an audit? Is it all the confusing changes on tax laws and policies that drive you nuts? There are a lot of reasons people hate dealing with taxes,…

Have a Tax Issue With the IRS? You Could Always Take Them to Court

What would you do if the IRS makes a decision you don’t agree with? For example, let’s say you file a tax return and send it in expecting to receive a refund of $1,500. However, a few weeks later, instead of receiving your refund, you get a letter in the mail informing you that you…