Aa
Supreme Court says health mandate's a tax
NEW YORK (CNNMoney) -- It walks like a tax and talks like a tax. Therefore it is a tax.
The Supreme Court on Thursday upheld the mandate to buy health insurance -- ruling that it is a tax and not a penalty as originally billed by supporters.
"The federal government does not have the power to order people to buy health insurance," Chief Justice John Roberts wrote for a divided court. "The federal government does have the power to impose a tax on those without health insurance."
The mandate goes into effect in 2014 and is just one of the provisions that will help pay for the Affordable Care Act. The law will subsidize coverage for low- and middle-income Americans and expand eligibility for Medicaid. The federal government is set to spend more than $1 trillion over the next decade to do so.
There are also a slew of spending cuts as well as other taxes and fees that will be paid by health sector companies and hospitals; employers and consumers.
Individuals who will help foot the tab -- directly or indirectly -- include very high-income households, those with very generous health benefits at work, those who opt to remain uninsured and those who love a good indoor tan.
Medicare surtax: Starting in 2013, many individuals making more than $200,000 a year ($250,000 if married) will start paying more into Medicare.
The health reform law changes the Medicare tax in two ways: It adds a surtax on wage income above a certain level, and it creates a new Medicare tax on investment income.
Some high-income households will only be subject to one of those changes, and some will be subject to both.
Starting next year, high-income individuals will pay another 0.9 percentage points on their earned income over $200,000 ($250,000 if married). That's on top of the 1.45% they currently pay on all of their wages.
For those with investment income, they also could be subject to a new 3.8% tax on at least a portion of their capital gains and dividends.
New mandate to buy insurance: Starting in 2014, individuals must be insured or pay a penalty.
The amount of the penalty rises annually from 2014 to 2016 and is adjusted for inflation thereafter.
In 2014, the penalty will be no more than $285 per family or 1% of income, whichever is greater. In 2015, the cap rises to $975 or 2% of income. And by 2016, the penalty would be up to $2,085 per family or 2.5% of income, whichever is greater.
The dollar amounts for a single adult would be $95, $325 and then $625 during that same time period.
There are, however, are a number of exemptions. For instance, the penalty will be waived for people with very low incomes who are members of certain religious groups, or who face insurance premiums that would exceed 8% of family income even after including employer contributions and federal subsidies.
New tax on high-cost employer plans: Starting in 2018, insurers of employer-sponsored plans -- or companies that self-insure their own plans -- will be subject to an excise tax if their plan cost tops $10,200 for individual coverage and $27,500 for family coverage. (Thresholds are higher for plans covering retirees and workers in high-risk jobs.)
The theory is that the so-called "Cadillac tax" will encourage companies to choose lower cost plans, and that will free up money to pay workers higher, taxable wages. That, in turn, boosts revenue paid into federal coffers.
Roughly 60% of large employers -- those with more than 500 employees -- believe their plans would trigger the tax unless they take action to avoid it, according to a 2011 survey by Mercer, a human resources consulting firm.
About half of those employers, however, don't think they will be able to get the value of their plan below the threshold.
"While some employers offer high-cost plans because generous benefits are part of their attraction and retention strategy, others have high-cost plans simply because they have an older or less healthy workforce or are located in a high-cost area," Mercer wrote in its survey analysis.
Cap on flexible spending accounts: Starting in 2013, the tax-deductible amount a worker may contribute to a flexible spending plan will be set at $2,500 and adjusted for inflation thereafter.
Currently there is no official limit, but employers set one for each plan.
Money contributed to FSAs may be used to pay for qualified health expenses but generally must be spent during the calendar year.
And in 2011, the law narrowed the list of qualified expenses that an FSA could pay for.
Penalty for misuse of health spending accounts: The health reform law imposed a 20% penalty for the use of a health spending account to pay for non-qualified expenses.
That provision went into effect in 2011.
Money a worker contributes to an HSA is tax deductible, while money his employer contributes to his account is tax-free. Interest and gains earned on the money invested can grow tax-free, and there is no time requirement on when the money must be used. But to qualify for an HSA, a worker must be enrolled in a high-deductible health insurance plan.
Higher threshold on medical deductions: Currently, if your medical expenses exceed 7.5% of your adjusted gross income, you may deduct the amount above 7.5%. Starting next year, however, you will only be allowed to deduct the amount above 10% of AGI.
That increase, however, is waived for tax years 2013 through 2016 for anyone 65 and older.
Tanning tax: Those seeking a little indoor "irradiation" by "ultraviolet radiation" -- as opposed to just going to the beach -- have been paying a 10% excise tax on the cost of their indoor tanning services since July 2010.
Spray tan services aren't subject to the tax.
SOURCE: http://money.cnn.com/2012/06/28/pf/taxes/health_reform_new_taxes/
The Supreme Court on Thursday upheld the mandate to buy health insurance -- ruling that it is a tax and not a penalty as originally billed by supporters.
"The federal government does not have the power to order people to buy health insurance," Chief Justice John Roberts wrote for a divided court. "The federal government does have the power to impose a tax on those without health insurance."
The mandate goes into effect in 2014 and is just one of the provisions that will help pay for the Affordable Care Act. The law will subsidize coverage for low- and middle-income Americans and expand eligibility for Medicaid. The federal government is set to spend more than $1 trillion over the next decade to do so.
There are also a slew of spending cuts as well as other taxes and fees that will be paid by health sector companies and hospitals; employers and consumers.
Individuals who will help foot the tab -- directly or indirectly -- include very high-income households, those with very generous health benefits at work, those who opt to remain uninsured and those who love a good indoor tan.
Medicare surtax: Starting in 2013, many individuals making more than $200,000 a year ($250,000 if married) will start paying more into Medicare.
The health reform law changes the Medicare tax in two ways: It adds a surtax on wage income above a certain level, and it creates a new Medicare tax on investment income.
Some high-income households will only be subject to one of those changes, and some will be subject to both.
Starting next year, high-income individuals will pay another 0.9 percentage points on their earned income over $200,000 ($250,000 if married). That's on top of the 1.45% they currently pay on all of their wages.
For those with investment income, they also could be subject to a new 3.8% tax on at least a portion of their capital gains and dividends.
New mandate to buy insurance: Starting in 2014, individuals must be insured or pay a penalty.
The amount of the penalty rises annually from 2014 to 2016 and is adjusted for inflation thereafter.
In 2014, the penalty will be no more than $285 per family or 1% of income, whichever is greater. In 2015, the cap rises to $975 or 2% of income. And by 2016, the penalty would be up to $2,085 per family or 2.5% of income, whichever is greater.
The dollar amounts for a single adult would be $95, $325 and then $625 during that same time period.
There are, however, are a number of exemptions. For instance, the penalty will be waived for people with very low incomes who are members of certain religious groups, or who face insurance premiums that would exceed 8% of family income even after including employer contributions and federal subsidies.
New tax on high-cost employer plans: Starting in 2018, insurers of employer-sponsored plans -- or companies that self-insure their own plans -- will be subject to an excise tax if their plan cost tops $10,200 for individual coverage and $27,500 for family coverage. (Thresholds are higher for plans covering retirees and workers in high-risk jobs.)
The theory is that the so-called "Cadillac tax" will encourage companies to choose lower cost plans, and that will free up money to pay workers higher, taxable wages. That, in turn, boosts revenue paid into federal coffers.
Roughly 60% of large employers -- those with more than 500 employees -- believe their plans would trigger the tax unless they take action to avoid it, according to a 2011 survey by Mercer, a human resources consulting firm.
About half of those employers, however, don't think they will be able to get the value of their plan below the threshold.
"While some employers offer high-cost plans because generous benefits are part of their attraction and retention strategy, others have high-cost plans simply because they have an older or less healthy workforce or are located in a high-cost area," Mercer wrote in its survey analysis.
Cap on flexible spending accounts: Starting in 2013, the tax-deductible amount a worker may contribute to a flexible spending plan will be set at $2,500 and adjusted for inflation thereafter.
Currently there is no official limit, but employers set one for each plan.
Money contributed to FSAs may be used to pay for qualified health expenses but generally must be spent during the calendar year.
And in 2011, the law narrowed the list of qualified expenses that an FSA could pay for.
Penalty for misuse of health spending accounts: The health reform law imposed a 20% penalty for the use of a health spending account to pay for non-qualified expenses.
That provision went into effect in 2011.
Money a worker contributes to an HSA is tax deductible, while money his employer contributes to his account is tax-free. Interest and gains earned on the money invested can grow tax-free, and there is no time requirement on when the money must be used. But to qualify for an HSA, a worker must be enrolled in a high-deductible health insurance plan.
Higher threshold on medical deductions: Currently, if your medical expenses exceed 7.5% of your adjusted gross income, you may deduct the amount above 7.5%. Starting next year, however, you will only be allowed to deduct the amount above 10% of AGI.
That increase, however, is waived for tax years 2013 through 2016 for anyone 65 and older.
Tanning tax: Those seeking a little indoor "irradiation" by "ultraviolet radiation" -- as opposed to just going to the beach -- have been paying a 10% excise tax on the cost of their indoor tanning services since July 2010.
Spray tan services aren't subject to the tax.
SOURCE: http://money.cnn.com/2012/06/28/pf/taxes/health_reform_new_taxes/
Ok so this doesn't effect those of us in the middle class that deserve a tax break!!! Why is this a bad thing again????
We have already gotten tax breaks. How much do you want the "rich" to pay in taxes? 80% of their income? So the rule in America will be, not to be successful so the government doesn't take all of your money?
Do you know what a family who lives in NYC and makes $250,000 a year is called? Poor. With the expenses in NYC that is nothing, so they will get taxed.
Do you know what a family who lives in NYC and makes $250,000 a year is called? Poor. With the expenses in NYC that is nothing, so they will get taxed.
"Individuals who will help foot the tab -- directly or indirectly -- include very high-income households, those with very generous health benefits at work, those who opt to remain uninsured and those who love a good indoor tan."
Tell me MrsP... just WHO do you think gets to define the term "those with very generous health benefits at work"?
I have EXCELLENT health insurance and only pay $25.00 per paycheck ($50/mo).
The "powers that be" may deem ME, one of those with very generous health benefits.
What then?
I have a new tax imposed.
There's a lot more to this than meets the eye. Obama said, "No new taxes". And what do we see here?
A NEW TAX.
Once again, he lied.
Tell me MrsP... just WHO do you think gets to define the term "those with very generous health benefits at work"?
I have EXCELLENT health insurance and only pay $25.00 per paycheck ($50/mo).
The "powers that be" may deem ME, one of those with very generous health benefits.
What then?
I have a new tax imposed.
There's a lot more to this than meets the eye. Obama said, "No new taxes". And what do we see here?
A NEW TAX.
Once again, he lied.
I consider the benefits we have EXCELLENT but like I said in an earlier thread my husbands shells out over $200.00 per week.....The tax is not effecting the people of the middle class that this country pretty much depends on so IMO he did NOT lie......
He did lie. Why are you blind to see that? The man can do nothing wrong in your eyes can he? Even when the truth is right there you believe the opposite.
It's a new tax... plain and simple.
"The Supreme Court on Thursday upheld the mandate to buy health insurance -- ruling that it is a tax and not a penalty as originally billed by supporters."
The Supreme Court has CONFIRMED that it's a tax.
Why are you so adamant about saying it's not?
And why should this tax be any different than all the others? The Middle-Class WILL be effected by this, and will bear the brunt of it, just like all the other new taxes imposed on us.
"The Supreme Court on Thursday upheld the mandate to buy health insurance -- ruling that it is a tax and not a penalty as originally billed by supporters."
The Supreme Court has CONFIRMED that it's a tax.
Why are you so adamant about saying it's not?
And why should this tax be any different than all the others? The Middle-Class WILL be effected by this, and will bear the brunt of it, just like all the other new taxes imposed on us.
The high court’s ruling leaves in place 21 tax increases in the health-care law costing more than $675 billion over the next 10 years, according to the House Ways and Means Committee. Of those, 12 tax hikes would affect families earning less than $250,000 per year, the panel said, including a “Cadillac tax” on high-cost insurance plans, a tax on insurance providers, and an excise tax on medical device manufacturers
"I consider the benefits we have EXCELLENT but like I said in an earlier thread my husbands shells out over $200.00 per week.....The tax is not effecting the people of the middle class that this country pretty much depends on so IMO he did NOT lie......"
If you have what is considered a "Cadillac policy", you *will* pay tax on it, no matter how much you shell out each week.
If you have what is considered a "Cadillac policy", you *will* pay tax on it, no matter how much you shell out each week.
The confusion arises because of the administration’s argument that the power to enforce the individual mandate is rooted in Congress’ taxing power — but that the mechanism itself is designed to be a penalty, not a revenue-generating policy.
The narrow but important distinction created a communication challenge for the lawyer representing the Obama administration.
U.S. Solicitor General Donald Verrilli used the phrase “tax penalty” multiple times to describe the individual mandate’s backstop. He portrayed the fee as a penalty by design, but one that functions as a tax because it’s collected through the tax code.
The narrow but important distinction created a communication challenge for the lawyer representing the Obama administration.
U.S. Solicitor General Donald Verrilli used the phrase “tax penalty” multiple times to describe the individual mandate’s backstop. He portrayed the fee as a penalty by design, but one that functions as a tax because it’s collected through the tax code.
http://tpmdc.talkingpointsmemo.com/2012/03/alito-breyer-call-out-obama-lawyer-for-dubbing-mandate-both-a-penalty-and-tax.php
This is the link that I took the above passage from in case you want to read the entire article.
This is the link that I took the above passage from in case you want to read the entire article.
The administration called it a "penalty"; the Supreme Court deemed it to be a "tax"......... What's the difference? They both cost us money and why would anyone think they won't generate revenue? Penalyt/Tax = revenue.
The problem is the so-called 1% do not pay anywhere close to the percentage of taxes that anyone else does. Compound that with corporate welfare, and the costs of unnecessary wars, and we would easily have enough money to fund healthcare.
Instead, we are pitted against each other, instead of focusing on those who are truly taking more and more of the wealth.
The people are milked dry as corporate greed rules.
Instead, we are pitted against each other, instead of focusing on those who are truly taking more and more of the wealth.
The people are milked dry as corporate greed rules.
Once again, we're talking about the 1% (upper-crust).
This effects you and me, and won't hurt them a bit. So what if they have to pay a little more. THEY can afford it. This is about YOU and ME, and the fact that WE'RE being fleeced and taxed to death.
Please keep in mind that THEY aren't the ones screaming about this. It's ME and 75% of the country that are screaming, because this is yet ANOTHER tax.
Frankly, I can't afford to pay anymore than I'm already paying, and I dare say, that the majority of you guys in the forum are in the same boat I am.
This effects you and me, and won't hurt them a bit. So what if they have to pay a little more. THEY can afford it. This is about YOU and ME, and the fact that WE'RE being fleeced and taxed to death.
Please keep in mind that THEY aren't the ones screaming about this. It's ME and 75% of the country that are screaming, because this is yet ANOTHER tax.
Frankly, I can't afford to pay anymore than I'm already paying, and I dare say, that the majority of you guys in the forum are in the same boat I am.
You need to rethink that 75% figure. Latest polls this morning show 42% opposed, 35% pro, and 22% undecided. Since the law is mindnumbingly long and few have actually read it, this just tells me that only 22% of the American Public are honest and 77% are willing to drink their respective Party's Kool-Aid.
Once as people know what is going on, hospitals will start to cut back and med school enrollment will be down.
Med school enrollment in this country won't matter. Healthcare has become another global market. As long as there are waivers to immigration quotas for certain professions we won't lack for doctors.
I haven't read the ACA, but I can tell you how things have changed for me since 2010:
I was allowed to keep my 22 year old daughter on my Health Insurance until she found a job with good benefits.
My monthly insurance payments (which had roughly tripled between 2000 and 2010) have not risen noticeably.
My co-pay for Rx meds has roughly tripled.
The Supreme Court has passed the decision back to the people. Come November, one candidate has vowed to repeal the law and the other will fight to retain it. If the campaign hinged on this one issue, I'd vote against Romney.
I haven't read the ACA, but I can tell you how things have changed for me since 2010:
I was allowed to keep my 22 year old daughter on my Health Insurance until she found a job with good benefits.
My monthly insurance payments (which had roughly tripled between 2000 and 2010) have not risen noticeably.
My co-pay for Rx meds has roughly tripled.
The Supreme Court has passed the decision back to the people. Come November, one candidate has vowed to repeal the law and the other will fight to retain it. If the campaign hinged on this one issue, I'd vote against Romney.
"It's a new tax... plain and simple."
Yea for the people who have been getting tax breaks for the last 10 years....
"There are also a slew of spending cuts as well as other taxes and fees that will be paid by health sector companies and hospitals; employers and consumers.
Individuals who will help foot the tab -- directly or indirectly -- include very high-income households, those with very generous health benefits at work, those who opt to remain uninsured and those who love a good indoor tan.
Medicare surtax: Starting in 2013, many individuals making more than $200,000 a year ($250,000 if married) will start paying more into Medicare.
The health reform law changes the Medicare tax in two ways: It adds a surtax on wage income above a certain level, and it creates a new Medicare tax on investment income.
Some high-income households will only be subject to one of those changes, and some will be subject to both.
Starting next year, high-income individuals will pay another 0.9 percentage points on their earned income over $200,000 ($250,000 if married). That's on top of the 1.45% they currently pay on all of their wages. "
Yea for the people who have been getting tax breaks for the last 10 years....
"There are also a slew of spending cuts as well as other taxes and fees that will be paid by health sector companies and hospitals; employers and consumers.
Individuals who will help foot the tab -- directly or indirectly -- include very high-income households, those with very generous health benefits at work, those who opt to remain uninsured and those who love a good indoor tan.
Medicare surtax: Starting in 2013, many individuals making more than $200,000 a year ($250,000 if married) will start paying more into Medicare.
The health reform law changes the Medicare tax in two ways: It adds a surtax on wage income above a certain level, and it creates a new Medicare tax on investment income.
Some high-income households will only be subject to one of those changes, and some will be subject to both.
Starting next year, high-income individuals will pay another 0.9 percentage points on their earned income over $200,000 ($250,000 if married). That's on top of the 1.45% they currently pay on all of their wages. "
"If you have what is considered a "Cadillac policy", you *will* pay tax on it, no matter how much you shell out each week."
Nope not me....
Individuals who will help foot the tab -- directly or indirectly -- include very high-income households, those with very generous health benefits at work, those who opt to remain uninsured and those who love a good indoor tan.
Medicare surtax: Starting in 2013, many individuals making more than $200,000 a year ($250,000 if married) will start paying more into Medicare.
Nope not me....
Individuals who will help foot the tab -- directly or indirectly -- include very high-income households, those with very generous health benefits at work, those who opt to remain uninsured and those who love a good indoor tan.
Medicare surtax: Starting in 2013, many individuals making more than $200,000 a year ($250,000 if married) will start paying more into Medicare.
Once again, blinders are on, and B.O. can do no wrong.
The middle-class will see a tax increase. I'm not going to argue... let's just wait and see.
The middle-class will see a tax increase. I'm not going to argue... let's just wait and see.
Of course he can do no wrong, he's the 1st African American...I mean 1st mixed race President who learned from radicals. No way that a 1-term Senator is in over his head, I mean he was a Community Organizer.
We are all human and humans make mistakes.
Has anyone here really claimed that President Obama has not made mistakes ?
I for one agree that he was not ready for the huge mess he got himself into when elected.
There are many things he's done, that I don't agree with and have disappointed me.
If I say there's something I don't like about Romney or Bush that doesn't mean Obama is above reproach.
Mrs P is a big Obama supporter. I don't always agree with her but I respect her.
We are all in this mess together.
The only ones I see 'winning' are the insurance companies.
They just got a windfall, how anyone can call that socialism or even suggest Roberts is on the left, is beyond me.
Has anyone here really claimed that President Obama has not made mistakes ?
I for one agree that he was not ready for the huge mess he got himself into when elected.
There are many things he's done, that I don't agree with and have disappointed me.
If I say there's something I don't like about Romney or Bush that doesn't mean Obama is above reproach.
Mrs P is a big Obama supporter. I don't always agree with her but I respect her.
We are all in this mess together.
The only ones I see 'winning' are the insurance companies.
They just got a windfall, how anyone can call that socialism or even suggest Roberts is on the left, is beyond me.
Roberts is not on the left but did get this wrong. The mandate is bad law. The way INS is going to work is it will not be controled by the large INS companies because they have no say in how much they charge and how much is given back to the Dr's/hospitals. It is going to be mostly government run in key areas.
Obama was not even close to ready and has made a ton of mistakes. Overall the decision is do you want to continue this path? Or do you want change? Obama promised change, yet the change is for the worse.
Obama was not even close to ready and has made a ton of mistakes. Overall the decision is do you want to continue this path? Or do you want change? Obama promised change, yet the change is for the worse.
The Learned Vance.
Tanning tax...
I was just thinking about something. You know who's NOT tanning? Black people and mexicans.
You know who IS tanning? Well-off white people.
Tell me that's not racism and discrimination.
Freaking pathetic.
I was just thinking about something. You know who's NOT tanning? Black people and mexicans.
You know who IS tanning? Well-off white people.
Tell me that's not racism and discrimination.
Freaking pathetic.
You must join this user group in order to participate in this discussion.
You are reading content posted in the Current Events . . . Group
A list of national and international resources and hotlines to help connect you to needed health and medical services.
Herpes sores blister, then burst, scab and heal.
Herpes spreads by oral, vaginal and anal sex.
STIs are the most common cause of genital sores.
Condoms are the most effective way to prevent HIV and STDs.
PrEP is used by people with high risk to prevent HIV infection.
