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TITLE IV—AMENDMENTS TO INTERNAL REVENUE CODE OF 1986
Subtitle A—Shared Responsibility
PART 1—INDIVIDUAL RESPONSIBILITY SEC. 401. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE HEALTH CARE COVERAGE.
(a) IN GENERAL.—Subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:
‘‘PART VIII—HEALTH CARE RELATED TAXES ‘‘SUBPART A. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE HEALTH CARE COVERAGE.
‘‘Subpart A—Tax on Individuals Without Acceptable Health Care Coverage ‘‘Sec. 59B. Tax on individuals without acceptable health care coverage.
‘‘SEC. 59B. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE HEALTH CARE COVERAGE. ‘‘(a) TAX IMPOSED.—In the case of any individual who does not meet the requirements of subsection (d) at any time during the taxable year, there is hereby imposed a tax equal to 2.5 percent of the excess of ‘‘(1) the taxpayer’s modified adjusted gross income for the taxable year, over‘‘(2) the amount of gross income specified in section 6012(a)(1) with respect to the taxpayer. ‘‘(b)
‘‘(1) TAX LIMITED TO AVERAGE PREMIUM.—
‘‘(A) IN GENERAL.—The tax imposed
under subsection (a) with respect to any tax
payer for any taxable year shall not exceed the
applicable national average premium for such
The following are some of the highlights of the tax increases included in the bill:
Section 1501 - Requirement to maintain minimum essential coverage - Individuals will be required to maintain health insurance. Those that do not will be assessed an annual tax penalty of $750. The tax penalty is scheduled to escalate in subsequent years. Consequently, Massachusetts residents that do not maintain health insurance will be assessed a tax at both the state and federal level.
Section 9001 – Excise tax on high cost employer-sponsored health coverage – This provision levies an excise tax of 40 percent for any health coverage plan that is costs over $8,500 per year for single coverage and $23,000 per year for family coverage. Since this was protested vigorously by unions and public employees, the Senate caved and granted a massive concession. The tax is not levied on the individual receiving the tax free benefit, but is levied on the insurance company or plan administrators that provide the employee the benefit. How absurd is that?
Section 9008 - Imposition of annual fee on branded prescription pharmaceutical manufacturers and importers - This piece of the legislation imposes a $2.3 billion excise tax on the pharmaceutical industry. The tax is allocated across the industry and is based on market share, not on income. This tax starts immediately and is non-deductible for the corporation being taxed. These companies will still be required to pay their federal income taxes.
Section 9009 - Imposition of annual fee on medical device manufacturers and importers - This section imposes a $2 billion excise tax on the medical device industry. The fee is allocated across the industry based on market share, not on income. This tax starts immediately and is non-deductible for the corporation being taxed.
Section 9010 - Imposition of annual fee on health insurance providers - Another excise tax. This one is assessed on the health insurance industry in the amount of $6.7 billion per annum and is also based on market share. How can the imposition of $11 billion in excise taxes (section 9008, 9009 and 9010) on the health care industry reduce costs to consumers? Does anyone else suspect these companies will have to pass these costs over to consumers?
Section 9013 - Modification of itemized deduction for medical expenses – For those incurring significant medical costs, your ability to deduct these expenses will be decreased. This legislation increases the adjusted gross income threshold for claiming an itemized deduction from 7.5 percent to 10 percent.
Section 9015 - Additional hospital insurance tax on high-income taxpayers – This increases the Medicare tax on wages by 0.50 percent on individuals making in excess of $200,000 and married couples making over $250,000. This will be effective starting January 1, 2013. (As a side note, individual income taxes are already scheduled to increase in 2011, with the highest rate already increasing by 4.6 percent. This will be in addition to the tax increase as outlined here in Section 9015.)
Section 9017 - Excise tax on elective cosmetic medical procedures - The bill imposes an excise tax of 5 percent for any voluntary cosmetic procedures.
1 ‘‘SEC. 59C. SURCHARGE ON HIGH INCOME INDIVIDUALS.
2 ‘‘(a) GENERAL RULE.—In the case of a taxpayer
3 other than a corporation, there is hereby imposed (in addi
4 tion to any other tax imposed by this subtitle) a tax equal
6 ‘‘(1) 1 percent of so much of the modified ad
7 justed gross income of the taxpayer as exceeds
8 $350,000 but does not exceed $500,000,
9 ‘‘(2) 1.5 percent of so much of the modified ad
10 justed gross income of the taxpayer as exceeds
11 $500,000 but does not exceed $1,000,000, and
12 ‘‘(3) 5.4 percent of so much of the modified ad
13 justed gross income of the taxpayer as exceeds
‘‘(1) IN GENERAL.—Except as provided in para
4 graph (2), in the case of any taxable year beginning
5 after December 31, 2012, subsection (a) shall be ap
7 ‘‘(A) by substituting ‘2 percent’ for ‘1 per
8 cent’, and
9 ‘‘(B) by substituting ‘3 percent’ for ‘1.5
Originally posted by OutKast Searcher
reply to post by kdial1
I'm reading through the bill too...but I am a supporter of this bill and have so far not found anything I am concerned about.
But to address your concerns.
1) Taxes on those that choose not to purchase health insurance. This is absolutely needed if the system is going to work. You can't get rid of pre-existing conditions and allow people to grift the system. So you either get health insurance...or you pay a tax up the amount of what an average health plan would cost. I'm glad they are doing this...the uninsured is one of the big problems with health care costs.
Originally posted by OutKast Searcher
2) Tracking medical devices. This is not scary...it will be life saving. If you don't have an implanted MEDICAL device...this shouldn't worry you. The data collection is already done by many private companies and state governments...this is just expanding it to a national database. It really isn't scary at all...people need to calm down. Not everything is a conspiracy. Wanting everyone to have good healthcare does not translate into the government wanting to kill you.
15 ‘‘SEC. 9511. HEALTH CARE COMPARATIVE EFFECTIVENESS
16 RESEARCH TRUST FUND.
17 ‘‘(a) CREATION OF TRUST FUND.—There is estab
18 lished in the Treasury of the United States a trust fund
19 to be known as the ‘Health Care Comparative Effective
20 ness Research Trust Fund’ (hereinafter in this section re
21 ferred to as the ‘CERTF’), consisting of such amounts
22 as may be appropriated or credited to such Trust Fund
23 as provided in this section and section 9602(b).
24 ‘‘(b) TRANSFERS TO FUND.—There are hereby ap
25 propriated to the Trust Fund the following:
1 ‘‘(1) For fiscal year 2010, $90,000,000.
2 ‘‘(2) For fiscal year 2011, $100,000,000.
3 ‘‘(3) For fiscal year 2012, $110,000,000.
20 ‘‘(d) EXPENDITURES FROM FUND.—
21 ‘‘(1) IN GENERAL.—Subject to paragraph (2),
22 amounts in the CERTF are available, without the
23 need for further appropriations and without fiscal
24 year limitation, to the Secretary of Health and
1 Human Services for carrying out section 1181 of the
2 Social Security Act.
Taxes on those that choose not to purchase health insurance. This is absolutely needed if the system is going to work. You can't get rid of pre-existing conditions and allow people to grift the system. So you either get health insurance...or you pay a tax up the amount of what an average health plan would cost. I'm glad they are doing this...the uninsured is one of the big problems with health care costs.
Have you ever thought that there are healthy people in the workforce that choose not take health insurance because they have no need for it?
I for one do not need to go to the doctor that often, I maybe go twice a year. I would rather pay cash. There are many Americans that do the same thing I do.
Let me guess you rely on the government services more so than the average American.
I too have relatives that leech off the system with welfare and tons more ridiculous government handouts, they feel the same way you do about this Bill. Sad really.....
This is scary, to most Americans. You are the small percentage that does not care.