Friday, December 28, 2012

2013: The Year of Obamacare Tax Hikes


Kevin Glass - Although Obamacare was signed into law in 2010, very few of its rules and regulations have gone into law. This was by design: the Obama Administration wanted to give executive departments time to set definitions, insurance companies time to adjust to the new reality, and didn't want Americans shocked - and perhaps outraged - by all the ways their lives would be affected. Including by taxes. 

In 2013, though, some of the new tax hikes will start to be phased in. As Sally Pipes of the Pacific Research Institute writes, there are five major tax changes that will affect Americans in the coming year:

On January 1, 2013, a 2.3-percent excise tax on the total revenues of medical-device companies — regardless of whether they turn a profit or suffer a loss — will take effect. The tax will hit everything they sell, from x-ray machines and pacemakers to surgical tools and artificial hips. The levy could extract as much as $29 billion over the next 10 years.

Individuals with annual incomes higher than $200,000 and couples who make more than $250,000 a year will face two new taxes — a 0.9-percent increase in the 1.45-percent Medicare levy on earnings above those income thresholds and a new 3.8-percent tax on investment income. Together, these two taxes are expected to raise about $318 billion over the next decade — roughly half of the law’s new tax revenue.

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