Health care law tax hikes are on the way for a number of Americans ranging from the wealthy to those with high-priced insurance plans to people who enjoy visiting the tanning booth.
The health care law tax hikes take effect over the course of the next year, with the biggest hit coming to the wealthiest 2 percent of Americans, the Associated Press reported.This includes individuals who make more than $200,000 per year, or couples that make more than $250,000 — about 2.5 million households.
This group is expected to pay $318 billion over the course of the next decade. But they aren’t the only ones — the IRS has planned an assortment of smaller tax increases that will help fund the health care improvements for millions of Americans in need of coverage.
The majority of Americans won’t see health care law tax hikes, the report said. Many will actually see help in the form of tax credits that begin in 2014, with an estimated 20 million people expected to receive these benefits.
Much attention has been given to the health care law’s effects on businesses. Those not offering adequate health care plans will begin paying a penalty starting in 2012, with employers expected to pay $106 billion for not meeting the mandate.
Businesses nationwide are worried about the effects of the health care law, writes Charley Moore, founder and chairman of Rocket Lawyer, in an article for Forbes. A 2012 Rocket Lawyer survey found that 67 percent of small businesses say that complying with government regulations is their greatest legal concern.
The 28 million people who visit tanning booths and beds are already paying a 10 percent tax. This measure is expected t0 raise $1.5 billion over 10 years. People who have “Cadillac” health care plans, those with premiums of more than $10,200 per person or $27,500 per family, will also pay a 40 percent excise tax. This is expected to raise $111 billion.
Others expecting health care law tax raises include insurers and drug companies, people who set aside tax-free savings accounts to pay for their health care and taxpayers who take write-offs on out-of-pocket medical expenses.