The Joint Committee on Taxation recently released a 96 page report on the tax provisions associated with Affordable Care Act. The report describes the 21 tax increases included in Obamacare, totaling $1.058 trillion – a steep increase from initial assessment, according to the Tax Prof Blog. The summer 2012 estimate is nearly twice the $569 billion estimate produced at the time of the passage of the law in March 2010.
Provision | 2010 Estimate, 2010-2019, $billion | 2012 Estimate, 2013-2022, $billion |
0.9% payroll tax on wages and self-employment income and 3.8% t tax on dividends, capital gains, and other investment income for taxpayers earning over $200,000 (singles) / $250,000 (married) | 210.2 | 317.7 |
“Cadillac tax” on high-cost plans * | 32 | 111 |
Employer mandate * | 52 | 106 |
Annual tax on health insurance providers * | 60.1 | 101.7 |
Individual mandate * | 17 | 55 |
Annual tax on drug manufacturers/importers * | 27 | 34.2 |
2.3% excise tax on medical device manufacturers/importers* | 20 | 29.1 |
Limit FSAs in cafeteria plans * | 13 | 24 |
Raise 7.5% AGI floor on medical expense deduction to 10% * | 15.2 | 18.7 |
Deny eligibility of “black liquor” for cellulosic biofuel producer credit | 23.6 | 15.5 |
Codify economic substance doctrine | 4.5 | 5.3 |
Increase penalty for nonqualified HSA distributions * | 1.4 | 4.5 |
Impose limitations on the use of HSAs, FSAs, HRAs, and Archer MSAs to purchase over-the-counter medicines * | 5.0 | 4 |
Impose fee on insured and self-insured health plans; patient-centered outcomes research trust fund * | 2.6 | 3.8 |
Eliminate deduction for expenses allocable to Medicare Part D subsidy | 4.5 | 3.1 |
Impose 10% tax on tanning services * | 2.7 | 1.5 |
Limit deduction for compensation to officers, employees, directors, and service providers of certain health insurance providers | 0.6 | 0.8 |
Modify section 833 treatment of certain health organizations | 0.4 | 0.4 |
Other Revenue Effects | 60.3 | 222** |
Additional requirements for section 501(c)(3) hospitals | Negligible | Negligible |
Employer W-2 reporting of value of health benefits | Negligible | Negligible |
Total Gross Tax Increase: | 569.2 | 1,058.3 |
* Provision targets households earning less than $250,000. ** Includes CBO’s $216.0 billion estimate for “Associated Effects of Coverage Provisions on Tax Revenues” and $6.0 billion within CBO’s “Other Revenue Provisions” category that is not otherwise accounted for in the CBO or JCT estimates. | ||
Source: Joint Committee on Taxation Estimates, prepared by Ways and Means Committee Staff | ||
