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Home Front: Culture Wars
How Health Car Bill Will Affect (some of) You
2010-03-24
Here's how the health care overhaul would affect taxpayers, according to The Tax Institute at H&R Block:
Taxpayers without qualifying health care coverage:

  • Beginning in 2014, taxpayers who are required to obtain or maintain qualifying health care coverage will face a penalty if they do not comply. The penalty increases from $95 in 2014 to $695 in 2016. They must file a return substantiating required coverage beginning in 2014.

  • Certain individuals may qualify for a subsidy to help cover the cost of insurance. This subsidy will be administered through the insurance company, with any difference being reconciled through the individual tax return.

    Based on the 2009 poverty level data currently in effect, a family of four with household income less than $88,200 would qualify for such a subsidy.

    Taxpayers who contribute to flexible spending accounts or health savings accounts:

  • Beginning in 2011, only prescribed drugs and insulin will be reimbursable through flexible spending accounts or health savings accounts. As a result, over-the-counter drugs such as aspirin or medical-related items such as bandages will no longer be qualified expenses for HSA or FSA purposes.
    Looks like a hidden tax, to me.
  • Beginning in 2013, the annual contribution to a flexible spending account is limited to $2,500. The current limit is $5,000.

  • The penalty for non-qualified distributions from health savings accounts increases from 10% to 20% in 2011.

    Taxpayers with large medical expenses:

  • For 2013-16, the threshold for deducting medical expenses is increased from 7.5% of adjusted gross income to 10%. The threshold is not changed for individuals who are at least age 65 by the end of the year.

    Higher-income taxpayers:

  • Beginning in 2013, the 1.45% employee portion of Medicare tax will increase by 0.9 percentage points for taxpayers with earned income in excess of $200,000, or $250,000 for joint filers. Any tax not fully withheld and sent to the government by the employer must be paid by the employee through their tax return. This also applies to self-employment income.

  • Also in 2013, taxpayers with adjusted income more than $200,000 ($250,000 for joint filers) will be subject to an additional 3.8% tax on net investment income (such as interest, dividends, capital gains).
    • Posted by:Bobby

    #5  By the time O and the traitorous congress get done with their socialistic pet legislation, the acceleration to bankruptcy will pick up some real steam, and that will be the end of the Socialist dream. We will be more like Zimbabwe.

    That is exactly what O wants.
    Posted by: Alaska Paul   2010-03-24 10:32  

    #4   Anyone who believes the costs estimates provided by the Donks and CBO are foolish.

    CBO Director Douglas Elmendorf met with Obama at the White House on 21 July 2009. Following that meeting, the CBO's attitude toward all things Obama took a very sharp course change. I wouldn't believe any data coming out of the CBO.
    Posted by: Besoeker   2010-03-24 09:26  

    #3  This bill affects all of us. We all lose. Freedom is precious and that is the price of this legislation. The bill provides for a lot of government intrusion in our lives. The IRS will have expanded power. It is a skid down a slippery slope. The country can't afford it. Anyone who believes the costs estimates provided by the Donks and CBO are foolish. Can anyone think of any government program that has made the estimated budget or come in under budget? Can anyone think of any Federal government social programs that are not broke? If people think they have gotten health care out of this sham; think again. There is no money for these "cash for votes" programs now or later. It is a sham to gain 30 million votes. Next up is amnesty for illegal immigrants; another 15-20 million undocumented, unregistered Democratic voters.
    Posted by: JohnQC   2010-03-24 09:16  

    #2  MOAA Legislative Update
    19 March 2010

    House Armed Services Committee Chairman Ike Skelton (D-MO) says he will
    include a provision in the FY2011 Defense Authorization Bill to amend
    national health care reform legislation to explicitly state that TRICARE
    "meets all requirements for individual health insurance."

    Committee staff members indicate this is a technical correction to make
    doubly sure TRICARE beneficiaries don't suffer any inadvertent penalties
    under the language of national health care reform legislation currently
    pending in the House.

    According to staff, the new House language cites Medicare, TRICARE For
    Life, and VA care as meeting the requirements, but didn't explicitly
    include TRICARE.

    Skelton tried to amend the bill to include TRICARE, but House rules
    governing reconciliation bills like the national health reform bill bar
    amendments that don't involve funding.

    But the lack of funding issue means Skelton will be able to make the fix
    in the defense bill instead.

    While it would be incongruous in the extreme to consider TRICARE as
    failing to meet any reasonable requirements for health insurance, the
    technical fix will make doubly sure TRICARE beneficiaries won't be
    subject to financial penalties applicable to people who don't obtain
    qualifying insurance.

    It would also require that TRICARE make a change to allow continued coverage of non-dependent children until age 28 if they don't have
    qualifying employer-sponsored coverage. Details on how to accomplish that would have to be worked out in the defense bill if the national
    health reform legislation passes.

    http://www.moaa.org/lac/lac_issues/lac_issues_update/lac_issues_update_1
    00319.htm#issue5

    Other NEWS

    Congress needs to act by April 1 to prevent a 21% cut in Medicare and TRICARE payments to doctors. Last week, the Senate approved a 6-month
    fix (until Oct. 1) as part of its jobs bill, H.R. 4213.




    Posted by: Besoeker   2010-03-24 07:51  

    #1  Any chance of a so called Flat Tax is certainly gone forever along with tens of thousands of pine trees. This has nothing to do with health care and everything to do with increased income taxes.
    Posted by: Besoeker   2010-03-24 07:30  

    00:00