Rollout of Obamacare taxes
Created on February 8, 2011
The Rollout of Taxes for Obamacare
As part of the recently passed health care legislation, a slew of new taxes begin taking effect this year, increasing rapidly through 2019. By the end of 2019, the total tax burden on the economy is projected to be nearly $102 billion higher for that year alone because of Obamacare. The steepest year-to-year increase occurs in 2013, when total Obamacare taxes triple from $12 billion to $36 billion because of higher payroll taxes.
Source: Heritage Foundation calculations based on data from the Joint Committee on Taxation.
TOTAL OBAMACARE TAXES, BY YEAR 2010 2015 2019 $102 billion $75 billion $50 billion $25 billion $100 billion TIMELINE OF INDIVIDUAL TAXES Chart 1 • B 2402 heritage.org Scale: $10 billion 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Eight other taxes, restrictions, and penalties
$32 billion Raise floor for adjusted gross income on medical expenses to 10%
$15 billion New corporate taxes
$17 billion 2.3% excise tax on certain medical devices
$20 billion Exclusion of unprocessed fuels
$24 billion Annual fees on manufacturers, importers of branded drugs
$27 billion 40% excise tax on “Cadillac” health insurance plans
$32 billion Annual fee on health insurance providers
$60 billion Health insurance mandates for individuals and employers
$65 billion This new tax will grow beyond 2019 and hit more and more middle- and low-income families in the process. Higher payroll taxes will soon hit middle-income taxpayers because the $250,000 threshold is not indexed for inflation. Applying payroll taxes to investment income for the first time will slow economic growth, cost jobs, and lower wages. These tax hikes will open the door for Congress to raise them even further in the future whenever it wants more revenue. Payroll tax (Hospital Insurance portion) Total: $210 billion (2010–2019)