Nearly all Obamacare taxes repealed. The bill repeals all Obamacare taxes starting in 2018. The biggest ones here are the 3.8 percentage point Medicare payroll tax bracket, the 3.8 percent surtax on savers, the “high medical bills tax,” the “medicine cabinet tax,” a flurry of tax increases on health savings accounts (HSAs) and flexible spending accounts (FSAs), the medical device tax, and a series of tax hikes on various health industries. One missing tax repeal is the economic substance doctrine, but that may have to do with the “Byrd rule” limitation on reconciliation bills.
Individual mandate and employer mandate retroactively repealed. These two Obamacare taxes have been zeroed out and retroactively applied to 2016 onward. If necessary, families and businesses will be able to file amended returns to get their penalty taxes back.
“Cadillac plan” tax deferred until 2025. The most significant Obamacare tax not repealed is the 40 percent excise tax on high cost, employer provided health insurance plans (“Cadillac plans”). The tax on these plans was already delayed by the permanent extenders bill, and is delayed further here. Earlier drafts featured a repeal of this tax, replaced by a cap on the employee tax exclusion on the most expensive employer provided plans. It is disappointing that this did not make the final cut, as it’s far superior policy to the Cadillac plan tax. It is good, however, that the employer community which so vociferously objected to the new cap still must live under the specter of the far-worse Cadillac plan tax.
New tax credit to purchase health insurance. Starting in 2020, those not offered health insurance at work (this will have to be certified) or eligible for government health insurance (Medicare or Medicaid) will have the ability to use a new advanceable/refundable healthcare tax credit. It’s only available to citizens and green card residents, and is not available to prisoners.
The credit is age adjusted. You simply add up the people in your household to determine the credit size:
Those figures are indexed to inflation plus one percentage
Health Insurance: https://www.advocareassoc.com