April 15 is right around the corner, and millions of Americans will find themselves paying more in taxes as a function of the Affordable Care Act.
The law is more than a fundamental change to the country's health insurance system. It also is a massive tax hike. As The Heritage Foundation's Federal Budget in Pictures shows, according to the most recent scores, the ACA will increase taxes by nearly $800 billion for the 10 year period of 2013-2022.
The ACA contains 18 separate tax increases. There is a tax on health insurance premiums, pharmaceutical companies, medical device manufacturers and a higher rate on the Hospital Insurance payroll tax for single filers with incomes above $200,000 ($250,000 for married filers) that also applies to investment income. Beginning in 2015, there are tax penalties on larger employers not offering mandated health insurance and beginning in 2014, penalties on individuals who do not purchase the mandated coverage. Also, many Americans are paying higher health insurance premiums, driven up, in part, by mandated benefits and new taxes on insurers.
Another indirect tax in the ACA comes from planned reductions in Medicare spending, which are politically unpopular and are unlikely to become reality. However, the likelihood of additional increases to what the affluent elderly pay for their Medicare insurance premiums is very likely.
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