More on the Reality

Tax increases hitting the middle class:

• The “Cadillac” on high cost plans;
• The individual mandate tax on Americans who do not purchase government-approved health insurance;
• The increase in the 7.5% AGI floor for medical expense deductions to 10%;
• The limits on Flexible Spending Accounts in cafeteria plans;
• The increased penalties for nonqualified HSA distributions;
• Additional restrictions on Health Savings Accounts, Health Reimbursement Accounts, and Flexible Spending Accounts;
• The new tax on tanning services;
• The employer mandate tax;
• The sales tax on medical devices;
• The tax on health insurance premiums;
• The tax on prescription drugs; and
• The tax on insured and self-insured health plans.

CBO estimates that 3 million people with incomes below five times the poverty line (about $120,000 for a family of four in 2016) would pay the individual mandate tax in 2016, for a total of $2.0 billion.

See http://www.cbo.gov/ftpdocs/113xx/doc11379/Individual_Mandate_Penalties-04-22.pdf

The Joint Committee on Taxation estimates that 87% of the tax burden from the Cadillac tax will fall on the middle class.

See http://online.wsj.com/article/SB10001424052748704107204574471292249934348.html