Senate Bill Repeals Obamacare’s Chronic Care Tax on Middle Class
Obamacare’s Chronic Care Tax is an income tax hike that hits 10 million households that happen to have high out of pocket medical expenses in a given year – the average income of households paying this Obamacare tax is $53,000
Though rarely if ever mentioned by the mainstream media, Obamacare is loaded with tax hikes on the middle class. Today we look at just one of these taxes, the Obamacare Chronic Care Tax:
-The Obamacare Chronic Care Tax violated Obama’s middle class tax pledge. Obamacare imposed a $1 trillion tax hike on the American people, and violated President Obama’s own “firm pledge” not to raise any form of tax on any middle class American. One of the most widespread Obamacare tax hikes is the Chronic Care Tax.
-The Obamacare Chronic Care tax is an income tax hike. Before Obamacare, Americans facing high out of pocket medical expenses were allowed an income tax deduction to the extent that those expenses exceeded 7.5 percent of adjusted gross income (AGI). Obamacare now imposes a threshold of 10 percent of AGI. Therefore, Obamacare not only makes it more difficult to claim this income tax deduction, it widens the net of taxable income.
-The Obamacare Chronic Care Tax hits at least 10 million American households each year. According to IRS data, each year approximately 10 million households are hit with the Obamacare Chronic Care Tax, and nearly all were middle class. The average household income of those hit with this Obamacare tax: $53,000.
-The Obamacare Chronic Care Tax is a $36 Billion Tax Hike over 10 years. By raising the threshold that Americans can claim the chronic care tax deduction to 10 percent, ATR estimates that the income tax increase for the average family claiming this tax deduction is $200 - $400 per year. The latest CBO score shows that the Obamacare Chronic Care tax hits these families with $36 billion in higher taxes over ten years.
-The Senate’s Better Care Reconciliation Act abolishes the Chronic Care Tax, providing significant tax relief for low and middle income households. The Senate healthcare bill restores the pre-Obamacare 7.5 percent threshold, providing significant middle class income tax relief.
Senate Health Bill Repeals Obamacare’s Medicine Cabinet Tax
The Senate Better Care Reconciliation Act provides middle class tax relief for the 30 – 35 million Americans with a Flexible Spending Account and the 20 million Americans with a Health Savings Account.
-The Obamacare Medicine Cabinet Tax violated Obama’s middle class tax pledge. Obamacare imposed a $1 trillion tax hike on the American people, and violated President Obama’s own “firm pledge” not to raise any form of tax on any middle class American. One of the most widespread Obamacare taxes is the Medicine Cabinet Tax.
-The Obamacare Medicine Cabinet Tax hits tens of millions of Americans. The Obamacare Medicine Cabinet Tax hits the 20 million Americans with a Health Savings Account and the 30 – 35 million Americans with a Flexible Spending Account.
-Under Obamacare’s Medicine Cabinet Tax, Americans are forbidden from using HSA and FSA funds to buy over the counter medicines. Examples include:
cold, cough, and flu medicines children’s fever relievers chest rubs aspirin and baby aspirin allergy medicines menstrual cramp relief medication feminine personal care treatments hundreds of other common medicine cabinet necessities
-The Obamacare Medicine Cabinet Tax is a $5.6 Billion Tax Hike. By forcing Americans with FSAs and HSAs to use post-tax dollars to purchase these necessary items, Obamacare raised taxes on these households by $5.6 billion over a ten year period.
-The Repeal Bill Abolishes the Obamacare Medicine Cabinet Tax, providing significant tax relief for middle class households. The repeal bill gives HSA and FSA holders the freedom to use pre-tax dollars to purchase over the counter medicines for their household -- cold, cough, and flu medicines, children’s fever relievers, chest rubs, aspirin and baby aspirin, allergy medicines, menstrual cramp relief medication, feminine personal care treatments, hemorrhoid cream, and hundreds of other common medicine cabinet necessities.
-The Senate health bill doubles the dollar amount families can put into HSAs. Families with high medical expenses will be able to purchase more of their essential health items using pre-tax funds. This change makes HSAs even more useful to household budgets.
“The Obamacare Medicine Cabinet Tax raised the cost of health care and made middle income Americans worse off,” said Grover Norquist, president of Americans for Tax Reform. “The bill repeals Obamacare’s Medicine Cabinet Tax once and for all.”
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