As it stands now, with the Supreme Court ruling upholding the health reform and the unknown election results, we are facing hikes in taxes. Here is a quick snapshot of where we are headed as a result of the health reform.
Tax Increases Effective 2013
Singles earning more than $200,000 and couples earning over $250,000 will pay a 9% Medicare surtax.
Deducting medical expenses for those under age 65 will now be subject to a 10% AGI floor.
Flex spending accounts will be capped at $2,500 for the year.
Unearned income will be subject to a 3.8% Medicare surtax for singles with Modified AGI over $200,000 and couples over $250,000.
The Federal subsidized part of drug plan costs for retirees will be nondeductible for employers.
A 2.3% excise tax on medical devices goes into effect in 2013.
Tax Increases Effective 2014
Uninsured individuals will owe at least $95 in tax as a penalty, with a cap at $285 for families. The tax rises the next 2 years with the top tax at $2,085 in 2016. Those with lower or middle incomes will get an income tax credit to help pay for insurance coverage.
Employers with 50 or more full time employees that do not provide adequate health care will owe an excise tax if one of their employees get the income tax credit. The cost of the tax is $2,000 for every employee above 30 workers. If any employee buys coverage through an exchange, the tax rises to $3,000.
What does all this mean? This is just a snapshot and does not provide all the complicated details but the bottom line is…less deductions and more taxes.