Today we are going to dig a little bit deeper into the taxes that will start taking effect as soon as January of 2011.
We will look at the second wave today and will follow-up with our third and final wave tomorrow.
In just six months, the largest tax hikes in the history of America will take effect. They will hit families and small businesses in three great waves on January 1, 2011:
The second great wave is Obamacare:
There are over twenty new or higher taxes in Obamacare.
Several will first go into effect on January 1, 2011.
The “Medicine Cabinet Tax” Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).
The “Special Needs Kids Tax” This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.
The HSA Withdrawal Tax Hike. This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
There are several additional taxes embedded into Obamacare, but we just wanted to highlight a few of them.
To read about our first wave which was discussed in a blog yesterday, you can click Here!
Stay tuned for our third wave which will be brought to you tomorrow and check back often for additional write-ups on how this administration is doing their best to ruin our great country.