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ATR: Obama Health Plan Is a Net Tax Hike of $629 Billion
Date:2/22/2010

Title IX (Net tax hike of $544 billion)

  • Corporate 1099-MISC information reporting ($17 billion): Requires businesses to send 1099-MISC information tax forms to corporations (currently limited to individuals), a huge compliance burden for small employers
  • Black liquor credit repeal ($24 billion): This is an excise tax hike which is contained in the President's budget
  • Economic substance doctrine ($4 billion): This would require taxpayers to prove to the IRS that a perfectly-legal tax deduction or strategy is "economically substantial," and not simply a way to pay less in taxes
  • Medicare payroll tax hike ($87 billion): Increases Medicare payroll tax rate from 2.9 percent to 3.8 percent on wages and self-employment income which exceeds $200,000 ($250,000 married)
  • Apply Medicare tax to unearned income ($150 billion): Would apply this new, higher Medicare tax rate to unearned income (interest, dividends, rent, royalties, and passive investment in pass-throughs like S-corporations and partnerships--capital gains not mentioned)
  • Cadillac plan excise tax ($125 billion): 40 percent excise tax on health insur
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SOURCE Americans for Tax Reform
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