The Health-Care Bill as passed by the House of Representatives (H.R. 4872) last night will take nearly a decade to roll out in full. Within the legislation are tax changes that effect individuals and small businesses. Here is a timeline of the proposed changes as detailed in the Wall Street Journal today:
2010
- None
2011
- $2.5 Billion annual fee imposed on drug makers (rises in later years)
2012
- New Medicare taxes on individuals earning more than $200,000 a year and couples filing jointly earning more than $250,000 a year.
- Tax on wages rises to 2.35% from 1.45%.
- New 3.8% tax on unearned income such as dividends and interest.
- Excise tax of 2.9% imposed on sale of medical devices
2013
- Subsidies for small businesses to provide coverage increase. Businesses with 10 or fewer employees and average annual wages of less than $25,000 receive tax credit of up to 50% of employer’s contribution. Tax credits phase out for larger businesses.
- Employers with more than 50 employees that don’t provide affordable coverage must pay a fine if employees receive tax credits to buy insurance. Fine is up to $3,000 per employee, excluding first 30 employees.
- Insurance industry must pay annual fee of $8 billion (rises in later years).
2016
- Penalty for those who don’t carry coverage rises to 2.5% of taxable income or $695, whichever is greater.
2018
- Excise tax of 40% imposed on health plans valued at more than $10,200 for individual coverage and $27,500 for family coverage.