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A look at taxes imposed by Obama’s health care law



By on February 11, 2017

A look at the $1.1 trillion in taxes over 10 years imposed by former President Barack Obama‘s health care overhaul. The revenue helped pay for the law’s expansion of coverage to millions of Americans.

The revenue estimates are by the nonpartisan Congressional Budget Office and Congress’ Joint Committee on Taxation. They could differ significantly from whatever Republicans propose in their effort to erase the law and replace it:

—3.8 percent tax on investment income over $200,000 for individuals, $250,000 for couples: $223 billion in revenue over 10 years.

—tax penalty on larger employers not providing health insurance to workers: $178 billion.

—annual fee on health insurance companies: $130 billion.

—0.9 percent Medicare surtax on income over $220,000 for individuals, $250,000 for couples: $123 billion.

—”Cadillac” tax on value of high-cost employer provided health insurance: $79 billion.

—deductibility of medical costs exceeding 10 percent of people’s income, raised from prior 7.5 percent threshold: $40 billion.

—tax penalty on individuals who don’t obtain health insurance: $38 billion.

—annual fee on makers and importers of prescription drugs: $30 billion.

—2.3 percent tax on makers and importers of some medical devices, exempts consumer products such as eye glasses: $20 billion.

—$2,500 annual limit on employee contributions to flexible spending accounts for medical costs (cap grows with inflation): $32 billion.

—10 percent tax on indoor tanning services: $800 million.

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Note: Some figures measure slightly different 10-year windows.

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