Archive for the ‘Healthcare’ Category

New 2013 3.8% Federal Obamacare Tax on Unearned Income

Sunday, March 24th, 2013

The new 3.8% Obamacare tax of 3.8% kicks in at $200,000 (S)/ $250,000 ((MFJ) of Modified AGI and will apply to a large number of taxpayers. This new tax applies to interest, dividends, capital gains and other passive income. Advanced planning to minimize net investment income and properly classify active and passive activites is important to minimize this tax. Please note that the attached article was published BEFORE passage of the 2013 Tax Act, and the dividend rate only rose to 20% (vs. 39.6%).

Healthcare Tax Timeline – AICPA Corporate Taxation Insider Newsletter

Thursday, April 29th, 2010

The following article details the various tax and penalty aspects (including effective dates for the multiple tax provisions) and health insurance mandates under the 2010 Patient Protection and Affordable Care Act (P.L. 111-148) and the Health Care and Education Reconciliation Act of 2010 (P.L. 111-152) [together the Healthcare Bill]:


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Healthcare Costs, The Tax Police (IRS), And Congressional Pressure to Silence Critics.

Tuesday, March 30th, 2010
As companies large and small begin analyzing the impact of the recently enacted (2,400 page) healthcare bill, Congress is stirring up controversy with mixed signals to the business community on how the IRS will be enforcing compliance and putting pressure on large corporations who have announced negative earnings impact from the bill.
Read these interesting pieces form the Wall Street Journal:
Corporate Impact and Barney Frank’s Pressure:
The following was recently posted by House Minority Leader John Boehner (R-Ohio)
Silence! DemsTrying to Bully Employers on ObamaCare’s Job-Killing Impact

Posted by Press Office on March 30, 2010


Washington Democrats want the nation’s employers to think twice about alerting their workers, customers, shareholders, and the publicat large to the financial impact of President Obama’s new health care law, whether it’s AT&T ($1 billion), Deere & Co. ($150 million), Caterpillar ($100 million), 3M ($90 million), AK Steel ($31 milllion), and Valero Energy (up to $20 million.)

The White House blog has been used to question the credibility of these statements. A Cabinet secretary called these public disclosures “irresponsible.” House Energy and Commerce Committee Chairman Henry Waxman (D-CA) wants to hold hearings and issue subpoenas. These scare tactics are not surprising. Last fall, the Obama Administration issued a gag order designed to keep seniors in the dark about ObamaCare’s massive Medicare cuts.

America’s workers have a right to know how this new law will affect them. As do the millions of retirees who may lose their drug benefits. As do the customers who may have to pay higher prices to cover these losses. As do the small businesses who rely on these companies for telecommunications (AT&T), office supplies (3M), gasoline (Valero), and equipment (Caterpillar, John Deere)? These are the very valid questions House Republicans are discussing with their constituents this week while Democrats are attacking companies having a hard enough time trying to survive this recession without Washington getting in the way.




$493 Billion Healthcare Tax Hike Has Immediate Impact on Business Earnings

Saturday, March 27th, 2010

AT&T is reporting a $1 BILLION earnings hit, John Deere reported $150 million impact and Caterpillar anticipates a $100 million decrease in earnings from higher premium, reduced tax deductions and various tax increases.

Read the Business Week Coverage of the AT&T Impact:

Read the Marketwatch Summary on the full Industry Impact:


Obama Struggles in Polls and On the Public Relations Trail:

Read the Fox News transcript of President Obama’s challenges in selling the healthcare reform to skeptical Americans:,2933,590007,00.html

Get the REAL facts from Accounting Web and the U.S. Chamber about how the healthcare bill will impact you and your business:—-its-time-to-get-the-facts-on-health-care-reform-straight

Senate Budget Report Provides Interesting Insights Into The Senate Bill:

Read how your congressman voted:

Other recent links:

U.S. Chamber Web Site:

Healthcare Tax Increases – $493 Billion. Total Government Outlays to Reach $2.3 Trillion. Medicare Benefits to Decrease by $465 Billion.

Sunday, March 21st, 2010

Senate Budget Report Provides Interesting Insights Into The Senate Bill:

Read how your congressman voted:

Other recent links:

U.S. Chamber Web Site:


Now that the House has narrowly passed (220-211, including a single Republican vote from Cao-LA in support) the 2,400 page  Senate version of the Healthcare Bill (which was passed by the Senate on Christmas Eve last year), it is a good time to review how the Senate version is projected to impact businesses, individuals and the U.S. Government.

In addition to income and payroll tax increases, and penalties,  of nearly half a trillion dollars

While the House  also narrowly passed (220-211) their Reconcilaition bill late this evening, the Senate will very likely not agree with all of the House’s suggested changes to the Senate Bill.   The Senate will take up that task later this week.

Read how business owners (but not union shops) will be penalized with a 40% tax on “high cost”/ “Cadillac” medical insurance policies.  File that provision under:  No Good Deed Goes Unpunished.

Also read how taxpayers making more than $200,000 will be be “rewarded” with a .9% addition Hospitalization Insurance (HI) on wages and self-employment income.

Flexible Spending Accounts (FSA) will now be subject to limitations on tax-free contributions and spending limits.  In addition, deductibility of medical costs will now rise to 10% of Adjusted Gross Income from the current 7.5% thresshold.

D&T Tax Provision Summary :


Reuters’ summary timeline of the healthcare roll-out:


Hold onto your wallet.

Healthcare Bill and Related Tax Increases Inch Along

Friday, March 19th, 2010

The $940 Billion healthcare bill bill continues to move towards a contentious vote on Sunday.  216 votes are needed in the House to pass the Senate version of the healthcare bill which was passed a few months ago.

The front loaded tax collections will offer the administration with some nice window dressing for the budget deficit and the Social Security funding.  However, if this bill moves forward, it will surely have a negative impact on job retention and creation due to the higher cost of labor.  

Many of the healthcare benefits will not kick in until 2014, and it is difficult to project whether cost trends will drop or increase during this period, since the pricing of medical procedures, drugs and other related costs are fairly elastic in the healthcare arena. 

If the House passes the Senate bill, expect both the House and Senate to begin the reconcilaition process to sidestep the supermajority requirement.  To review the proposed Recociliation Provisons to modify the previously adopted Senate Healthcare Bill, see the House link below for details:

Caterpillar Tractor is projecting to incur an increase of 20% in their medical insurance premiums – or $100 million – to cover their 44,000 employees and retirees.

Eating at the Trough – California Pension, Healthcare and Other Benefit Costs Are Strangling The Economy

Saturday, March 6th, 2010

With conservative estimates of unfunded public sector pension and healthcare liabilities topping a quarter of a billion dollars, and growing at a rate of $17 billion annually, Orange County Supervisor (and one of the very few to predict the O/C bankruptcy back in 1994) discusses the extreme danger to cities, counties and the state of California – and the real possibility of a California default:

Katy Grimes shines a light on the chasm between public and private sector vacation and sick day payouts which are coming to light as state employees head for the exits.

For an excellent website covering these public pension issues, bookmark the following site:

Related Twitter:

Supervisor Moorlach’s webpage:

Obama Updates His Healthcare Plan – Third Time’s The Charm?

Monday, February 22nd, 2010

$950 billion over 10 years, imposition of excise tax on “Cadillac” medical plans (excluding dental and optical), and expanded Social Security taxes on wages, rent and interest income (yes you heard right) for taxpayer making more than $200,000 (single) or $250,000 (joint).

Read the Heritage Foundation’s summary of the major tax provision:

In preparation for the bi-partisan healthcare conference later this week, President Obama released his revised healthcare proposal, which incorporates portions of both the Senate and House versions passed late last year.

With the recent pick up of a key seat in the Senate (Scott Brown- – MA) by the GOP, the Democrats are scrambling to either win over some Republican votes – or resort to the nuclear option of Reconciliation.

The following link from WSJ summarizes the key points of the latest $950 billion proposal:

The Democrats are threatening the use of the ”Reconciliation” procedure to avoid additional House and Senate debate and votes.  Read about the history and the Reconciliation procedures:

As reflected in the attached articles, there are a number of hurdles to overcome for the two parties to get beyond the current impasse and President Obama’s legacy and the mid-term elections hang in the balance.

Obama’s weekend healthcare video laying out Thurday Summit’s objectives:

Feb. 22, 2010 Washington Post (Blog) – Obama is the Real Obstructionist:


From the U.K. side of the Pond – President Obama Doubles Down on Healthcare: