List of tax hikes in current health care legislation H.R. 3590

We’ve been working to document the actual details of the health care legislation in Congress for months, not just the Democrat’s intent mind you, but the actual details. Now, Americans for Tax Reform has published a comprehensive list of tax hikes.

The full bill – H.R. 3590 – is available here. Understand we do not have any new legislative text we can review since changes to H.R. 3590 – the Senate version of health care legislation – is again being done on the down-low.

The bill Congress and the president has been talking about for the past few days is vapor-legislation – it does not exist. So the only thing we have for review – with about 72 hours to go – is H.R. 3590.

Americans for Tax Reform (ATR) has a Web version and I’ve grabbed the PDF version (275 KB) for your convenience. Please go over to the ATR Web site and review the post. Along with an individual mandate excise tax if you refuse to buy into a qualified plan (whatever that ends up being), we’ve got a increase in the Medicare tax (from 2.9 percent to 3.8 percent) for individuals making more than $200,000.

If you think you won’t be affected by that Medicare tax increase since you’re under the $200,000 cap, you don’t understand business management or economics. That money has to come from somewhere to be paid out, and you can bet it does not grow on trees. Everyone will be hit by that change.

But there is more…

Flexible Spending Account Cap – akaSpecial Needs Kids Tax” (Page 1999/Sec. 9005/$14 bil/Jan 2011): Imposes cap on FSAs of $2500 (now unlimited).  Indexed to inflation after 2011 (added on page 363 of manager’s amendment). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.  There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education.  Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.

Tax on Medical Device Manufacturers (Page 2020/Sec. 9009/$19.2 bil/Jan 2010): Medical device manufacturers employ 360,000 people in 6000 plants across the country. This bill would impose a new $2 billion annual tax on the industry imposed relative to shares of sales made that year.  Exempts items retailing for <$100.  Rises to $3 billion annually in 2017 (updated by page 364 of manager’s amendment).

Tax on Innovator Drug Companies (Page 2010/Sec. 9008/ $22.2 bil/Jan 2010): $2.3 billion annual tax on the industry imposed relative to share of sales made that year.

Tax on Health Insurers (Page 2026/Sec. 9010/$59.6 bil/Jan 2011): $10 billion annual tax on the industry imposed relative to health insurance premiums collected that year.  Phases in gradually until 2017.  Fully-imposed on firms with $50 million in profits (updated on page 365 of manager’s amendment)

Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D (Page 2034/Sec. 9012/$5.4 bil/Jan 2011)

We’re not just blowing smoke here and this is just a partial list. Go read the full report and ask yourself, which one of those tax increases will result in improved service, higher quality and lower costs?

Remember, you can take this ATR report, read it and head over to the only bill currently on the table – available at H.R. 3590 – and look up the sections easily yourself. When you go to, the full text of the bill – more than 2,000 pages – will be on one page. It will take a few seconds to load.

Use Ctrl+f on your keyboard and search for section numbers. Looking for the section that taxes drug companies? Hit Ctrl+f on your keyboard and type in Sec. 9008 and it will take you here, where you’ll read the following…

(b) Determination of Fee Amount

(1) IN GENERAL- With respect to each covered entity, the fee under this section for any calendar year shall be equal to an amount that bears the same ratio to $2,300,000,000 as …

It’s time you read the ATR report and then go read the appropriate sections of the bill. Then call your Congress-critters and ask them how these taxes will improve service and quality while reducing costs!

They will not have an answer .. you are better informed! The president’s plan will destroy health care in the United States.

1 reply
  1. donh
    donh says:

    A Tax that is  " DEEMED " without a vote is taxation without representation. Anyone who supports such a disingenuous process is a naked traitor .

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