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Congress has passed 27 tax increases so far

September 9, 2010

Congress has passed 27 tax increases so far
By Oregon Tax News,

Congress has raised taxes by $670.341 billion since the new President Obama administration took office in January of 2009.  The list below outlines the major new and extended taxes passed by the federal government:

1. Individual Mandate Excise Tax: Effective in January 2014, the tax will require Americans who do not purchase ‘qualifying’ health insurance to pay income surtax.

2. Employer Mandate Tax: Also effective in January 2014, employers that do not offer health coverage to pay an additional non-deductible tax of $2000 for all full-time employees if at least one employee qualifies for a health tax credit.  The tax applies to all employers with 50 or more employees.  The government expects to raise $65 billion over 10 years with the individual and mandate tax penalties combined.

3. Surtax on Investment Income: The tax creates a 3.8 percent surtax on investment income in households earning at least $250,000 ($200,000 single).  

4.Excise Tax on Comprehensive Health Insurance Plans:
In January 2018, the government will implement a 40 percent excise tax on “Cadillac” health insurance plans.  These plans include $10,200 for a single person or $27,500 per family.  The tax also includes higher thresholds of $11,500for a single person household and $29,450 per family for early retirees and high-risk professions.

5. Hike in Medicare Payroll Tax: The increased tax, starting in 2013, is expected to raise $86.8 billion

6. Medicine Cabinet Tax: In 2011, Americans will not be able to use their health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) plans to purchase over-the-counter medicines, with the sole exception of insulin.

7. HSA Withdrawal Tax Hike: The hike increases the tax on early withdrawals from a health savings account (HSA), for non-medical reasons, from 10 to 20 percent.  However, IRAs and other tax-advantaged accounts will remain at 10 percent.

8. Flexible Spending Account Cap or the “Special Needs Kids Tax”: The tax implements a cap on FSAs of $2500, which may place a burden on the parents of special needs children who often use their FSAs to help pay for the cost of a special needs education.

9. Tax on Medical Device Manufacturers: The law creates a new 2.3% excise tax on medical device manufacturers who employ 360,000 people in 6000 plants across the country.  The law exempts items retailing for less than $100.

10. Raise the Threshold for Medical Itemized Deduction: The new provision raises the threshold for deductions from 7.5 to 10 percent for medical expenses to the extent that those expenses exceed 10 percent of the individual’s adjusted gross income (AGI).  The increase is waived for 65+ taxpayers in 2013-2016.

11. Tax on Indoor Tanning Services: The law places a 10 percent excise tax on Americans using indoor tanning salons.

12. Elimination of tax deduction for employer-provided retirement: The law eliminates  prescription drug coverage in coordination with Medicare Part D

13. Blue Cross/Blue Shield Tax Hike: The special tax deduction for Blue Cross/Blue Shield companies is only allowed if 85 percent or more of premium revenues are spent on clinical services.

14. Excise Tax on Charitable Hospitals: The tax charges hospitals that fail to meet new “community health assessment needs,” “financial assistance,” and “billing and collection” rules set by HHS $50,000.

15. Tax on Innovator Drug Companies: The law imposes a $2.3 billion annual tax on innovator drug companies based on its annual sales.

16. Tax on Health Insurers: The tax will be imposed on firms with $50 million in profits.

17. $500,000 Annual Executive Compensation Limit for Health Insurance Executives

18. Employer Reporting of Insurance on W-2

19. Corporate 1099-MISC Information Reporting: The law requires businesses to send 1099-MISC information tax forms to corporations.

20. “Black liquor” tax hike: This tax increases tax on bio-fuel.

21. Codification of the “economic substance doctrine”: This provision gives the IRS the authority to prohibit legal tax deductions and other legal tax-minimizing plans if the IRS believes the action lacks “substance” and is only intended to reduce taxes owed.

22. Tobacco Tax Increase: The tax increase is expected to raise $65,515 and expand enforcement authority.

23. Stimulus: The stimulus prevents taxpayers from claiming losses of an acquired corporation.

24. UI Benefits, NOL Relief & Homebuyer Credit: The law extends federal unemployment surtaxes through June 2011 and delays the effort to reduce double taxation of worldwide American employers until 2018.

25. HIRE Act: The act delays the reduction of double taxation of worldwide American employers until 2021.

26. Increase the Reserve Ratio of the F.D.I.C.: The law increases the reserve ratio of the  Federal Deposit Insurance Corporation.  However smaller institutions with less than $10 billion in consolidated assets are exempt from paying any increase.

27. Maximum Deposit Insured by the F.D.I.C.: The law sets the maximum deposit at $250,000 per account, a change that would further raise the amount banks must pay toward the coverage.

  
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Discuss this article

John Fisher September 9, 2010

Tax And Spend, Tax And Spend … THIS Administration is doing everything wrong to Stimulate the Economy … Take a Lesson from History as to what works and what does not work! This Administration knows it stands NO CHANCE for another Term; therefore, why not Tax and Spend and Leave Their Collective negative destructive “MARK” for Generations to come!

To stimulate the economy … Tax Credits for Businesses as well as for the Individual / Family Income Tax Reporters.

GET A CLUE MR. OBAMA and CONGRESS!

Bob Clark September 9, 2010

I hope the thresholds for taxing “cadillac” plans increases with health care inflation, because if it doesn’t, we’ll all have cadillac plans by 2018.

Rather than introducing such a cumbersome healthcare plan, it would have made more sense to just means test health care provision for those not carrying insurance. In this alternative: If you don’t have income greater than the poverty level and assets of more than $10k, then the government would cover you. Otherwise, you get a lien against your estate for your necessary health care provision. The cost savings from not doing number 19 alone would pay for this alternative government healthcare. There was also the health care stamp idea, piggy backing off the food stamps program. The latter would have been far superior to Obama-Pelosi-Reid Care.

D. Eadward Tree September 9, 2010

I don’t question the basic premise of this article, but #20 is bogus. What Congress did was exclude black liquor (a pulp byproduct) from getting a biofuel credit and then used the supposed savings to help pay for ObamaCare. The problem is that no money had ever been budgeted for black liquor to get the credits because even pulp manufacturers didn’t think it met the requirements. The full story is at http://deadtreeedition.blogspot.com/2010/03/obamacares-black-liquor-tab-236-billion.html. This maneuver increased the federal deficit but was not a tax increase.

JRM September 9, 2010

Give us your source for the fact there was the “black liquor” tax hike.

Cam September 11, 2010

Personally, I know only one person who’s taxes went up. Of course, most of my family and friends make much less than $100k. If so many citizens are reporting no tax increase (except for cigarettes and some luxury stuff) why not raise taxes some more and get our debt down?
I say tax the hell out of the rich. Of course, it is a perspective thing… if I made a few hundred thousand a year I would be angry at the higher tax rate.

christopher lee September 11, 2010

i despair when i read comments like John Fisher’s.

surely a lesson from history is that when there’s a chance of depression a government stimulus is required. tax credits for business have much lower “mutltipliers” than direct government expenditure.

i think tax and spend is preferable to just spend which is what the last administration did. two wars (one necessary), massive tax cuts (principally for the wealthy), medicaid entitlement, all unfunded.

the clincher is that john’s vote is as important as anyone else’s.

and bob’s view to means test health care provision is cruel. people having to sell their houses when mom gets bit by a bus and needs constant care. the rule is simple: insurance companies cannot deny pre-existing conditions, which means everyone has to have insurance.

Ray September 11, 2010

And this is the reason why you write for some Oregon Business Report… I don’t what is more painful:reading your article or some of these comments.Soooo misleading.

msbpodcast September 11, 2010

Meh. It will affect anyone who’s got a job. I don’t… Nor do I have any health care coverage. If I break a leg, someone going to have to shoot me.

At one recent point in Canadian history a major CAUSE of inflation, because we were playing catch-up after a prolonged period of insane spending, sort of like the United States are, were taxes the Gummint was forced to levy. (You don’t think they want to do it do you, that the quickest way to getting voted out of power [and in Canada we’re not stuck for terms, we can vote the bastards out and force a re-election with a vote of non-confidence.])

Health care for profit only works when there is a single payer, the province or state. That means that the gummint is stuck with the tab for EVERYBODY. (Of course there are still hugely profitable companies who sell supplemental health insurance to cover the ‘perks’, [like private rooms etc.], but EVERYBODY is guaranteed access to health care.

Then you see the gummint pass laws against medical fraudsters on par with the draconian Rockefeller Drug Laws, and nailing the fraudsters’ asses to the wall. (You do NOT want to play games with health-care in most of the western world [EXCEPT the US {which still hasn’t realized the conundrum of the oxymoron known as “health care for profit”.])

Kevin September 11, 2010

Republicans = Tax Cut and Spend. This equals HUGE deficits. I know conservatives like to ignore facts. Do a little research, look at deficit growth during republican presidents. BTW, Bush killing the economy = less revenue = bigger deficit.

Teabaggers, if you are making less than 200k, then you are just a slave to the message of the super rich. Why do you care if they pay a few percent more in taxes. BTW, taxes on the upper bracket were above 70% for about 40 years.

Jon September 11, 2010

Even though “HUGE deficit” caused be republicans has only been multiplied several times over by democrat leadership. Rep fails and dem fails harder… By all means, remove more resources from being used in production of real wealth and see what happens.

Time to prepare for decade plus economic slump.

misconfig September 11, 2010

@Cam;

I don’t think you get the point here; what makes you think taking more money from the rich and redistributing it to the poor would make things better? That does nothing but drive the real money makers out of the country; this day and age there are plenty of ways to make money, there is a reason we have social classes, some people will always be lazy and stupid.

Taking from the people that work hard for their money simply is NOT the answer; as the poor will continue to be unwise with their money.


A wise and frugal government which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government.

– Thomas Jefferson

misconfig September 11, 2010

I must capitalize on my previous statement; this is the Jefferson quote I really wanted to make visible.


“The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.”

-Thomas Jefferson

roninkai September 11, 2010

About time we learned to pay for the last administration’s failures.
Tax the rich at post WWII levels (85%-98%?).
We are in two wars (still) and all of us need to pitch in to fix this mess.
We need to redistribute or cash, lets face it the Uber rich (2% total US population) don’t need the money as bad as the rest of us (98% total US population).

If Republicans could actually do math we would never be in this position. A house wife with a check book could do better.

misconfig September 11, 2010

@ roninkai;

Redistributing wealth isn’t going to work, PERIOD. If you ask me the left/right paradigm is a farce, its’ a very effective tool to divide the people; therefore systematically making us powerless.

Please, don’t blame this on a political wing that’s not the issue. If we simply abolished the fed, stopped fighting wars we don’t need to be in and minimize this behemoth of a government our nation would be in the black again.

Also, let’s not forget get rid of this bullshit dependent class in our society. Something I tend to ask myself “Why do people want the government to take care of themselves?”; as you state – we do not need more government control if you haven’t noticed by now, the GOVERNMENT is the issue.

Tristan September 11, 2010

I’m sorry, but this article doesn’t distinguish the tax RATES, and the income brackets they apply to. I hardly expect my taxes to go up, I’m not making nearly enough.

Let’s look at some FACTS:

Rich people who have millions (or even billions) of dollars in their bank accounts are getting massive tax cuts. This is supposed to encourage them to spend more. But clearly if they have MILLIONS OF DOLLARS IN THE BANK IT’S NOT BEING SPENT.

I ask you, idiots of the GOP, to please explain how a rich person goes about creating jobs when they refuse to spend any of their millions of dollars on hiring people? Hmmm? Perhaps you’ve been lied to? Perhaps historical data on economic and social trends clearly shows that societies with more equalized wealth have greater overall wealth and prosperity? Perhaps the majority of you don’t make over $250k a year? Perhaps the richest 10% of Americans control 90% of all the money in America? Perhaps all of these questions are actually rhetorical because they’re TRUE? YES.

@misconfig: WE ARE THE GOVERNMENT, READ THE CONSITUTION.

John M September 11, 2010

“Teabaggers, if you are making less than 200k, then you are just a slave to the message of the super rich. ”

I make more than $200K…about $400K. How am I super rich? I can’t even afford to live in the best neighborhoods in affordable Houston, TX…

KP September 16, 2010

“The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.”

I cannot find any sourcing for this quote. It is made up.

KP September 16, 2010

This article is drivel. What a lazy attack on Obama, with little quantification or substantiation. It is complete garbage.

What they should mention is that all of theses listed together do not come close to equaling the cost of the Medicaire Part D legislation passed by Bush and the GOP congress.

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