Increase taxes.

There are a large variety of taxes included in the healthcare reform act in an attempt to collect enough tax revenue to pay for "free" healthcare.

I understand this change is related to national healthcare reform, but trying to understand the reasoning behind it (if there is any).

I guess the prior responder is surprised that you have to pay for things or borrow and spend, the alternative. The following tax increases go into effect next year, all a result of the Affordable Care Act, a/k/a Obamacare:

1. The reduction in FSA limits.

2. An increase to 10% of AGI (from 7.5%) in the exclusion of deductible medical expenses. This change is delayed until 2014 for those 65 and older.

The following two were mentioned in a recent thread:

3. The surtax on certain investment income

4. The Medicare surtax on certain earned income

Note that none of these changes has anything to do with the "fiscal cliff" tax components.

Phil
Rule Your Retirement Home Fool

I guess the prior responder is surprised that you have to pay for things or borrow and spend, the alternative

My attempt at sarcasm clearly failed.

2. An increase to 10% of AGI (from 7.5%) in the exclusion of deductible medical expenses. This change is delayed until 2014 for those 65 and older.


ack! made me look-- diff would've cost me about $400 last year



the limit on medical expenses not something I've ever understood

Ok, thank you.

So it's not because the govt planners think we'll have less need for that higher amount, but rather they are taking from one side, to make up for the other.

Thanks, RS