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
http://www.betterbusinessventures.com
Sacramento Tax Consulting
Sacramento Tax Preparation
Sacramento Tax Representation
IRS Tax Help, Bookkeeping Services, Payroll Services

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