Thursday, November 19, 2009

The number 17 may mean something this year

The Joint Committee on Taxation has published a list of the 17 tax increases in the Senate health care bill, which are estimated to raise $370.2 billion in revenues over ten years:

  1. 40% excise tax on health coverage in excess of $8,500/$23,000 ($149.1 billion)
  2. Employer W-2 reporting of value of health (negligible revenue effect)
  3. Conform definition of medical expenses ($5.0 billion)
  4. Increase penalty for nonqualified health savings account distributions to 20% ($1.3 billion)
  5. Limit health flexible spending arrangements in cafeteria plans to $2,500 ($14.6 billion)
  6. Require information reporting on payments to corporations ($17.1 billion)
  7. Additional requirements for section 501(c)(3) hospitals (negligible revenue effects)
  8. Impose annual fee on manufacturers & importers of branded drugs ($22.2 billion)
  9. Impose annual fee on manufacturers & importers of medical devices ($19.3 billion)
  10. Impose annual fee on health insurance providers ($60.4 billion)
  11. Study and report of effect on veterans health care (no revenue effect)
  12. Eliminate deduction for expenses allocable to Medicare Part D subsidy ($5.4 billion)
  13. Raise 7.5% AGI floor on medical expenses deduction to 10% ($15.2 billion)
  14. $500,000 deduction limitation on taxable year remuneration to health insurance officials ($0.6 billion)
  15. Additional 0.5% hospital insurance tax on wages > $200,000 ($250,000 joint) ($53.8 billion)
  16. Modification of section 833 treatment of certain health organizations ($0.4 billion)
  17. Impose 5% excise tax on cosmetic surgery ($5.8 billion)
Update: See CCH's Special Report.

Owen S. Arnoff, Enrolled Agent
Admitted to Practice Before the Internal Revenue Service
Sacramento Tax Consulting
Sacramento Tax Preparation
Sacramento Tax Representation
IRS Tax Help, Bookkeeping Services, Payroll Services

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