The Motley Fool Discussion Boards
Retirement Discussions / Retire Early CampFIRE
|Subject: It seemed like such a good idea.||Date: 1/12/2013 7:40 PM|
|Author: mcbdds||Number: 666091 of 785205|
Obamacare Medical Device Tax: As of Jan.1, Obamacare imposes a new tax of 2.3 percent on medical device manufacturers, including those who make dental braces. The tax is imposed on gross sales -- even if the company does not earn a profit in a given year. While the tax will be paid to the IRS by the manufacturer, the tax will be passed along as a higher cost of the product, ultimately to be borne by the parent buying the braces for their child. With the cost of braces being as high as $7,625 this new tax could raise the cost of these braces by $175.
Before Obamacare, Americans facing high medical and dental expenses were allowed a deduction to the extent that those expenses exceeded 7.5 percent of adjusted gross income (AGI). As of Jan. 1, Obamacare imposes a threshold of 10 percent of AGI. Therefore, Obamacare not only makes it more difficult to claim this deduction, it widens the net of taxable income.
According to the IRS, 10 million families took advantage of this tax deduction in 2009, the latest year of available data. Almost all are middle class. The average taxpayer claiming this deduction earned just over $53,000 annually. ATR estimates that the average income tax increase for the average family claiming this tax benefit will be $200 - $400 per year. To learn more about this tax, click here.
This is just a small example of how a simple, everyday, kitchen table decision has been fundamentally altered by the tax hikes in Obamacare. It does not even take into account the indirect effects of the rest of the tax hikes in the law, which will reduce family income and kill jobs.
Only rich kids will have straight teeth.
Liberalism is a dental disorder.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|