HAPPY INDEPENDENCE DAY

 HAPPY INDEPENDENCE DAY


My curiosity has gotten the better of me.  After hearing that the Supreme Court ruled that the Affordable Health Care Act could stand the Constitutional test based upon the Government's powers to tax, I had to take another look. The section is TITLE IX.  WOW!  This section doesn't go into the individual penalty.  There are over 100 references to "penalties" within the Act.  Guess what my next post will be.


TITLE IX—REVENUE PROVISIONS
Subtitle A—Revenue Offset Provisions

EXCISE TAX ON HIGH COST EMPLOYER-SPONSORED HEALTH COVERAGE

Beginning with tax year 2013 and increasing in subsequent years

A tax of 40% of health insurance cost if over

individual     $675 per month
family        $1917 per month

Unless you live in one of the 17 states that the Secretary of Health and Human Services determines to be a "High Cost" state, then it's different.

If you have trouble following that, don't worry, your employer will keep track of it and report to the IRS.

Well, I guess the employer will have to keep track of this every month to see if a tax is due, even if it isn't.

Oh, yes, the health insurance costs by the employer will be included on your W2 so it will be easy for you to find at tax time.


TAXES ON FAILURES BY HOSPITAL ORGANIZATIONS

If a hospital is run as a non-profit/charity and it doesn't file all the required (yet to be determined) paper work, that will cost them $50,000.  Personally, I think it would cost more than that tax for the accountants to keep track of it.

The next three are so convoluted that I am not sure anyone can tell you what they tax, or how much.


IMPOSITION OF ANNUAL FEE ON BRANDED PRESCRIPTION
PHARMACEUTICAL MANUFACTURERS AND IMPORTERS

IMPOSITION OF ANNUAL FEE ON MEDICAL DEVICE MANUFACTURERS
AND IMPORTERS

IMPOSITION OF ANNUAL FEE ON HEALTH INSURANCE PROVIDERS

But the list goes on


ELIMINATION OF DEDUCTION FOR EXPENSES ALLOCABLE TO MEDICARE PART D SUBSIDY

MODIFICATION OF ITEMIZED DEDUCTION FOR MEDICAL EXPENSES

Deductible medical expenses were deductible if they exceeded 7.5% of your AGI, now it is if they exceed 10% of your AGI.

LIMITATION ON EXCESSIVE REMUNERATION PAID BY CERTAIN HEALTH INSURANCE PROVIDERS

OK, I need a CPA for this one.

ADDITIONAL HOSPITAL INSURANCE TAX ON HIGH-INCOME TAXPAYERS

Take that you 1%ers.

IMPOSITION OF TAX ON ELECTIVE COSMETIC MEDICAL PROCEDURES

Take that Hollywood; add 5% for your Uncle.

EXCLUSION OF HEALTH BENEFITS PROVIDED BY INDIAN TRIBAL GOVERNMENTS

OK, they're excluded, but what if they own a couple of those casinos and are in that 1%