ObamaCare's tax increases have provided endless evaluation for the policy shop at the House Republican Conference. While GOP leadership has pledged to repeal the legislation, they haven't yet had that opportunity. One area ObamaCare taxes affect most is the small business community, a lifeblood of the American economy. Here are just few of the taxes looming ahead:
$5 billion Medicine Cabinet Tax Increase on HSAs and FSAs: Approximately, 2.9 million people have HSAs in the small employer health insurance market, and according to industry sources, 20 million Americans have a Flexible Spending Account. Under ObamaCare, they will pay taxes on over the counter (OTC) nonprescribed household health care items when paid from their HSA or FSA.
$1.4 billion HSA Tax Increase: Approximately, 2.9 million people have HSAs in the small employer health insurance market. ObamaCare increases the tax on nonqualified medical expenses from 10 percent to 20 percent.
$13 billion Tax Increase on FSAs: ObamaCare caps the annual contribution to Flexible Spending Accounts (FSAs) at $2,500 per year. According to industry sources, 20 million Americans use FSAs to pay for routine medical care.
$15.2 billion Tax Increase on Medical Expenses: Under current law, individuals may deduct the cost of their medical expenses, including health insurance, if their expenses exceed 7.5 percent of adjusted gross income (AGI). ObamaCare increases the threshold to 10 percent, which increases taxes on Americans with high out-of-pocket expenses.
$210.1 billion Tax Increase on “Unearned Income” and New Tax on High Wage Earners: ObamaCare includes a new 3.8 percent tax on “unearned income,” which includes investment income such as home sales and rental property. In addition, ObamaCare adds a new 0 .9 percent tax on high-wage earners.