The Supreme Court Decision On Healthcare Will Affect Taxes

The nation waits for the Supreme Court to announce the ruling about health-care. Many wonder how their ruling will change taxes?

Not only does the Supreme Court decide about the Affordable Care Act, but also taxes. How will their judgement change taxes?

The law must include tax cuts and increases. Even if the individual mandate is eliminated, the taxes would go on. Unless the Supreme Court eliminates the entire healthcare bill.

The mandate tax will be the punishment people would owe for not buying insurance. The High Court must decide whether it is considered a penalty or a tax.

There are important ACA tax cuts for small businesses that will help with purchasing insurance for their workers. There was over a million dollars spent on lawyers and fees to challenge the healthcare law by the NFIB.

Is it practical to have the subsidy if the Court overthrows the key elements of the reform? It is a sure thing that the NFIB will agree.

The law contains many tax increases, that includes the excise tax on top-value, employer-sponsored healthcare plans which will start in 2018. There is be a provision that will make it harder for people to itemize medical costs.

There are a couple of other tax increases. The first increase is a .9% Medicare tax for those making above a certain threshold. This money would finance the elder care health system. The other is the 3.8% tax that households who have non-traditional income will have to bear. Some feel this is a surtax and the real purpose is to bankroll part of the cost of the ACA.

The Supreme Court decision may hit upper income families hard. In 2013, the two levies would hike taxes on households making $500,000 to $1 million, their taxes would increase by $4,600. For those making more than a million they would pay $41,000 in taxes.

Even for lower income families, there will be a tax. Married couples making over $250,000 combined, and single taxpayers making $125,000 will face a brand new tax. Households needing to pay these taxes over the next decade are going to double in number, because inflation is not taken into account. It will reach 4.6% from the 2.4% that it is now.

These tax provision should not be forgotten, even if the Supreme Court leaves them untouched. I think we shall hear about them again.

Tax Carnival Ecstasy – January 3, 2012

Welcome to the January 3, 2012 edition of Tax Carnival Ecstasy. We have the top 5 articles this week for the carnival including how to get Free Tax Advice by Phone this tax season from a software company. Joe Morgan takes a look at being Prepared to Pay $3,598 More in Income Tax for 2012. And Clint Cora examines the W8BEN Form For Canadians,  this form is for Foreigners Who Work In The US. Hope you find the information helpful, bookmark, share, tweet, like on Facebook, and come back soon.

tax law

Lawyer presents What is Tax Law? Do You Need to Pay Tax Law? posted at Legal Advice & Legal Aid, saying, “Read our comprehensive review about new Tax Law for 2012!”

taxes

Darren Marks presents Free Tax Advice by Phone… From a Software Company? posted at Consumer-Rankings, saying, “Introducing a free new feature from Turbotax just in time for tax season, free phone consultations with tax experts.”

Joe Morgan presents Are You Prepared to Pay $3,598 More in Income Tax for 2012? posted at Simple Debt-Free Finance, saying, “This article covers the effect of expiring tax laws and how they could cost the average American family $3,598 in additional taxes for the 2012 tax year – without any change in their income.”

tips

Clint Cora presents W8BEN Form For Canadians And Foreigners Who Work In The US posted atMotivation Diversity Success Blog, saying, “To help foreigners who get some income in the US reduce withholding tax”

Tyler presents Are You Sure You Want to Pay Taxes With a Credit Card? posted at Credit Card Chaser, saying, “I hope you find this article fitting for your readers! Some people don’t realize they’re instantly paying a significant extra charge! Please let me know if you have any questions or concerns. Look forward to seeing this on your next blog carnival! Have a great day! Tyler”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

 

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