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Healthcare-related tax hikes

Tax hikes related to healthcare The new healthcare law imposes several tax increases, but most do not take effect immediately, and most apply only to upper-income Americans. Revenue estimates are over 10 years, 2010 through 2019. Medicare taxes, effective 2013 ($210.2 billion) Payroll tax increases from 1.45% to 2.35% on wage income over $200,000 for individuals; over $250,000 for couples. For taxpayers in that bracket, a new surtax of 3.8% on investment income. High-cost healthcare plans, effective 2018 ($32 billion) 40% excise tax on health benefits that exceed $10,200 for individuals, $27,500 for couples. Tanning tax, effective July 1, 2010 ($2.7 billion) 10% excise tax on indoor tanning services. Flexible health spending accounts, effective 2013 ($13 billion) Limit to $2,500 a year contributions to tax-free health savings accounts. Itemized medical-expense deductions, effective 2013 ($15.2 billion) Allow itemized deductions only for medical expenses that exceed 10% of income, up from the current 7.5% threshold. Source: Joint Committee on Taxation


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