Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

12/31/2012 (1 year ago)

Catholic Online (www.catholic.org)

Parents of special needs children expected to be hit especially hard

Regardless of the outcome of fiscal cliff negotiations this coming New Year, Americans will be hit with a $1 trillion "Obamacare" tax hike. The said health care reform contains twenty new or higher taxes, and five of the taxes will hit for the first time on January 1. According to the Congressional Budget Office In total, Americans face a net $1 trillion tax hike for the years 2013-2022.

The Obamacare Flex Account Tax will be particularly disadvantageous for parents of special needs children.

The Obamacare Flex Account Tax will be particularly disadvantageous for parents of special needs children.

Article Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

12/31/2012 (1 year ago)

Published in Politics & Policy

Keywords: Obamacare, new taxes, special needs children, retirees, medical devices


LOS ANGELES, CA (Catholic Online) - The five major taxes taking effect on January 1 are as follows:

1. The Obamacare Medical Device Tax: Obamacare will impose a new 2.3 percent excise tax on gross sales for all medical device manufacturers, regardless if the company does not earn a profit in a given year. Medical device manufacturers employ 409,000 people in 12,000 plants in the U.S. In addition to discarding small business jobs as well as impacting research and development budgets, this increases the cost of overall U.S. health care. This plan will make everything from pacemakers to artificial hips more expensive.

2. The Obamacare Flex Account Tax:
The 30-35 million Americans who use a pre-tax Flexible Spending Account at work to pay for their family's basic medical needs now face a new government cap of $2500, squeezing $13 billion of tax money from Americans over the next ten years.

This new cap will be particularly disadvantageous for parents of special needs children. There are several million families with special needs children in the U.S. and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children can easily exceed $14,000 per year. Under the new rules, FSA dollars can be used to pay for this type of special needs education, limiting the options available to these families.

3. The Obamacare Surtax on Investment Income: A new 3.8 percentage point surtax on investment income earned in households making at least $250,000, or $200,000 single. This would result in the following top tax rates on investment income:

In 2012:

Capital Gains - 15 percent

Dividends - 15 percent

Other - 35 percent

In 2013 and afterwards, following the current law:
    
Capital Gains - 23.8 percent
    
Dividends - 43.4 percent
    
Other - 43.4 percent

The table above also incorporates the scheduled hike in the capital gains rate from 15 to 20 percent, and the scheduled hike in dividends rate from 15 to 39.6 percent.

4. The Obamacare "Haircut" for Medical Itemized Deductions:
Currently, those Americans facing high medical expenses are allowed a deduction to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI). This tax increase imposes a threshold of 10 percent of AGI. By limiting this deduction, Obamacare widens the net of taxable income for the most infirm Americans. This comes as most disadvantageous for near retirees and those with modest incomes, but outstanding medical bills.

5. The Obamacare Medicare Payroll Tax Hike:
The Medicare payroll tax is currently 2.9 percent on all wages and self-employment profits. Under this tax hike, wages and profits exceeding $200,000 ($250,000 in the case of married couples) will face a 3.8 percent rate instead. This is a direct marginal income tax hike on small business owners, who are liable for self-employment tax in most cases.

Happy New Year!

---


Pope Francis calls for your 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for March 2014
Respect for Women:
That all cultures may respect the rights and dignity of women.
Vocations: That many young people may accept the Lordís invitation to consecrate their lives to proclaiming the Gospel.



Comments


More Politics & Policy

DECLARED INVALID: North Dakota abortion ban overturned by federal judge Watch

Image of North Dakota has passed new abortion restrictions in recent years. Abortion supporters have declared North Dakota's fetal heartbeat law as the most restrictive in the country.

By Catholic Online (NEWS CONSORTIUM)

A North Dakota law banning abortions when a fetal heartbeat can be detected, as early as six weeks into pregnancy, has been overturned by a federal judge. The law is "invalid and unconstitutional," according to U.S. District Judge Daniel Hovland, who declared ... continue reading


Evidence of corruption: Newly disclosed emails show Lois Lerner WAS in contact with the DOJ over conservative political groups Watch

Image of The truth is, only I am allowed to lie and dodge questions, not private citizens or their political groups.

By Catholic Online (NEWS CONSORTIUM)

The Lois Lerner - Eric Holder scandal has hit the fan with the court ordered release of documents which implicate both in breaking the law to persecute and potentially prosecute conservative non-profit organizations. This issue has been the subject of Congressional ... continue reading


Cliven Bundy is a scofflaw, so why are so many people supporting him? Watch

Image of We want these things respected. Our Faith, our Rights, our Liberty. That's why we stand against federal corruption and evil. This is not negotiable.

By Catholic Online (NEWS CONSORTIUM)

Despite the drama which recently unfolded on the Bundy ranch in Nevada, the federal government apparently has a history of using heavy-handed tactics to enforce their will on rural farmers. This is part of the reason why so many people are sympathetic to Bundy, despite ... continue reading


WSJ exposes secret tax Obama has imposed on EVERY HOUSEHOLD in America - and yes, you have to pay! Watch

Image of Government regulation is a stealth tax on the economy costing $1.9 trillion annually.

By Catholic Online (NEWS CONSORTIUM)

The Wall Street Journal has exposed one of the greatest problems of the Obama administration and how its behavior is hurting the economy. While most would be quick to cry corruption, the reality is far more mundane and at least as dangerous. LOS ANGELES, CA (Catholic ... continue reading


Ron Paul says he will not pay IRS fine against his non-profit org Watch

Image of Ron Paul suggested his group will fight the IRS if they attempt to enforce a fine against Campaign for Liberty.

By Catholic Online (NEWS CONSORTIUM)

Ron Paul's Campaign for Liberty, a nonprofit political group, has been targeted by the IRS. The IRS has demanded to see the group's donor list, a demand the group has refused to meet which has led to a fine. The organization now says it will not pay the fine. LOS ... continue reading


Report says Christianity should be taught Watch

Image of Religions place in public education is a hotly debated issue for Americas.

By Catholic Online (NEWS CONSORTIUM)

It is commonly, though wrongly, accepted knowledge that public school teachers are not allowed to teach the Bible, biblical values, or Christian history in public schools. It is a debate that dominates every part of life, from a single household to the federal ... continue reading


Obama has proposed 442 tax hikes since taking office and you won't believe what he could tax next! Watch

Image of Obama has proposed hundreds of tax increases and more could come within the last two years.

By Catholic Online (NEWS CONSORTIUM)

President Obama has attempted 442 tax increases during his six years as president so far, and more are likely to come as the administration looks for ways to pay for their proposals. According to Americans for Tax Reform, the numbers suggest why it's important to have ... continue reading


Hey Eric Holder, where are the special prosecutors? Watch

Image of Hey Holder, why won't you answer simple questions?

By Catholic Online (NEWS CONSORTIUM)

At several federal judges said last week that in their professional opinion, Attorney General Eric Holder has exceeded his authority by giving federal prosecutors "improper instruction" to reduce drug sentences prior to official approval of new guidelines. LOS ANGELES, ... continue reading


Corruption runs deep - Ranking member of Committee asked to explain 'surreptitious communication' with IRS Watch

Image of Elijah Cummings (D-MD) has suspicious contact with the IRS. He has also resisted efforts to compel Lois Lerner to testify.

By Catholic Online (NEWS CONSORTIUM)

The House Oversight and Reform Committee is asking its ranking member, Elijah Cummings (D-MD) why he had surreptitious communication with the IRS over a group that received unlawful IRS scrutiny. The committee says the public deserves a "full and truthful explanation" ... continue reading


Attorney General Eric Holder lashes out Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

Attorney General Eric Holder has been under some intense, unflattering scrutiny as of late, stemming from the "Fast and the Furious" debacle. Holder went "off script" during a speech given at the National Action Network. While lauding the organization's effort ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Isaiah 52:13--53:12
13 Look, my servant will prosper, will grow great, ... Read More

Psalm, Psalms 31:2, 6, 12-13, 15-16, 17, 25
2 turn your ear to me, make haste. Be for me a ... Read More

Gospel, John 18:1--19:42
1 After he had said all this, Jesus left with his ... Read More

Reading 2, Hebrews 4:14-16; 5:7-9
14 Since in Jesus, the Son of God, we have the ... Read More

Saint of the Day

Saint of the Day for April 18th, 2014 Image

St. Apollonius the Apologist
April 18: Martyr whose Apologia, or defense of the faith, is considered ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter