Watch Out for 5 New Obamacare Taxes to Hit the Middle Class in 2013
So much for his talk of taxing the rich. Obama's new health care taxes will mostly impact middle-class Americans and many seniors.
According to Americans for Tax Reform, the five new taxes from Obamacare that will go into effect in 2013/ 2014 will whack the wallets of mostly middle-class citizens.
Among the most glaring is the Individual Mandate Non-Compliance Tax set to go into effect in 2014.
The tax will apply to the some 140 million Americans who file a tax return (100 percent of taxable population). While some six million Americans who don't currently have health insurance will be required to purchase it, every American who files will have to submit proof to the IRS that they have a qualifying plan approved by the Department of Health and Human Services or else they will face a surtax. And that will rise each year from 2014 to 2016.
An estimated 30-35 million Americans who use Flexible Spending Accounts will be facing the new Obamacare Flexible Spending Account Tax. This tax will set severe caps on the amount of pre-tax FSA dollars families can use towards medical expenses.
But perhaps the most galling tax going into effect will be the High Medical Bills Tax. Currently, if a person or family has medical bills that account for at least 7.5 percent of their Adjusted Gross Income (basically all of your earnings that are taxable), they are allowed a helpful deduction on their taxes. The change would raise that amount to 10 percent of their income. This is a huge jump, and will especially hit retirees, senior citizens, and middle-class families that have high medical bills.