New Obamacare Taxes

There are twenty new or higher taxes in Obamacare. Here are some of the more significant ones: Unless noted the new taxes start in 2013 or are already in place.

1. Dividends and other investment income earned by higher income taxpayers will have a new 3.8% surtax. The tax on dividends will be 43.4% for taxpayers in the highest income tax bracket.
2. Medical device manufacturers will have to pay a 2.3% excise tax on gross sales which will increase the cost of health care.
3. Medical itemized deductions for individuals will have a new 10% threshold of adjusted gross income which is up from 7.5%. You don't get the benefit of a medical deduction unless it is more than the threshold. This could hurt if you have high medical bills and itemize deductions.
4. Medicare payroll taxes on wages and  self employment income will increase from 2.9% to 3.8% on wages and self employment income exceeding $200,000 for individuals and $250,000 for joint returns.
5. There is a 10% tax on indoor tanning services.
6. You won't be able to contribute more than $2,500 to a flexible spending account. This is a pretax contribution for medical expenses that used to be unlimited.
7. Employers will have to pay a 40% tax on too generous healthcare plans starting in 2018. These are defined as Cadillac health care plans costing $10,200 for an individual or $27,500 for families.
8. Those not buying health insurance are subject to taxes of between $695 per person to $4,700 per person depending on income. This penalty tax will phase in between 2014 and 2016 and be collected by the IRS. Those making less than $9,500 will be exempt from the penalty, along with Indian tribes, and members of certain religions. The penalty tax though is generally going to be less than the cost of health insurance so many people, particularly young people will still choose just to pay the penalty.