Posted on 12/24/2009 6:30:36 PM PST by tobyhill
--The question of how to pay for new subsidies to cover the uninsured is likely to be one of the most contentious issues in upcoming House-Senate negotiations on health-care legislation. Here's an overview of how the tax provisions in the two bills stack up.
--High-income Americans are likely to see their taxes increase no matter which side prevails in conference negotiations, but it is a matter of by how much. The House bill included a 5.4% surcharge on incomes above $500,000, or $1 million for married couples. That would raise marginal tax rates as high as 45% in 2011 when the lower rates enacted under President George W. Bush expire.
The Senate bill includes no such income surtax. But it does include an increase in the 2.9% Medicare payroll tax on salaries above $200,000, or $250,000 for married couples.
--Unions and business groups will be working to defeat a 40% excise tax on so-called Cadillac insurance plans. The Senate bill would impose that tax on premiums above $8,500 for individuals, or $23,000 for family plans.
House Democrats are strongly opposed to the tax on high-cost insurance policies, but the Obama administration supports it.
(Excerpt) Read more at online.wsj.com ...
Here are some other tax provisions in the House bill. These provisions are not mentioned in the WSJ article but I believe several of these provisions will have far reaching tax consequences. I predict dire consequences from the last two provisions.
Corporate 1099-MISC Information Reporting (Page 344): Requires that 1099-MISC forms be issued to corporations as well as persons for trade or business payments. Current law limits to just persons for small business compliance complexity reasons. Also expands reporting to exchanges of property.
Delay in Worldwide Allocation of Interest (Page 345): Delays for nine years the worldwide allocation of interest, a corporate tax relief provision from the American Jobs Creation Act
Limitation on Tax Treaty Benefits for Certain Payments (Page 346): Increases taxes on U.S. employers with overseas operations looking to avoid double taxation of earnings.
Codification of the “Economic Substance Doctrine” (Page 349): Empowers the IRS to disallow a perfectly legal tax deduction or other tax relief merely because the IRS deems that the motive of the taxpayer was not primarily business-related.
Application of “More Likely Than Not” Rule (Page 357): Publicly-traded partnerships and corporations with annual gross receipts in excess of $100 million have raised standards on penalties. If there is a tax underpayment by these taxpayers, they must be able to prove that the estimated tax paid would have more likely than not been sufficient to cover final tax liability.
LOL. Martin thinks there will be "negotiations"? I doubt it. Hussein and Reid and Pelosi will convene with Rahm-it Manuel and they will decide the healthcare for 350 million Americans.
The suckups in the Senate and House will dutifully smell their behinds and do their bidding.
“The amount of medical expenses a person can deduct from taxes would be curtailed under the Senate bill. Under current law, out-of-pocket medical expenses are deductible to the extent they exceed 7.5% of income. The Senate bill by 2017 would allow deductions only for expenses that exceed 10% of income.”
C’mon. The bill will increase taxes for everyone who purchase anything. (tax/fee/cost of business, whatever the nomenclature may be)
It may not be a direct tax per say, but all business’ will pass their tax increase(s) along to their buyers, regardless of the level. (let’s not forget the ‘carbon tax’ bs that’s pending)
Small business may get a deduction for HC, but it won’t cover the full payment. No raises for employees, no health care, heck maybe no job!
The only reason I've been able to come up with for that attitude is that there are sociopathic and psychopathic sexual perverts in charge of preparing the greater part of the text for these bills.
Harry Reid and Nancy Pelosi know who they are too.
I think eventually we will be able to pull that information out of their memory banks ~ might take some waterboarding sessions, but we know from terrorist testimony that will work!
One of the biggest games in Rat infested Washington is the word game. They “won’t raise your taxes” but they’ll decrease the amount in which one can deduct from their itemized taxes. It’s “not a tax” when the Government fines someone for not having Government mandated and Government approved insurance.
Agree and all to cover 10% of the legal population who aren’t INSURED but DO have access to medical coverage.
Of that 10% (a nebulous figure at best), many don’t need INSURANCE, but they will be forced to ‘buy’ it in order to fund ‘the bill’.
The self pleasuring cowards just won’t come out and make it an outright tax, which it is, but under many covers.
Anyone know when this surcharge would go into effect?
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