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Posts Tagged ‘Health Care and Education Reconciliation Act of 2010’

Study Exposes Impact of Health Care Act’s Employer Penalties

Posted by William Byrnes on March 4, 2011

The Congressional Research Service last week released a publication describing the employer healthcare mandate and penalties for large employers under the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010.  Although penalties under the Health Care Act will not be applicable until 2014, the Act brings about a sea of change in the employer’ role in employee health insurance that requires significant present preparation.

Contrary to popular miscomprehensions about the Act, it does not mandate that employers provide their employees with health insurance; however, the Act does incentivize large employers to do so by penalizing them if their employees are not covered to a minimum level by employer-provided health insurance.  Read this complete analysis of the impact at AdvisorFX (sign up for a free trial subscription with full access to all of the planning libraries and client presentations if you are not already a subscriber).


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The National Health Care Bill Invoice

Posted by William Byrnes on January 4, 2011

Barack Obama signing the Patient Protection an...

Image via Wikipedia

Why is this Topic Important to Wealth Managers? Reviews the National Health Care Legislation’s revenues and expense provisions.  Discusses one area in particular where high income earners are subject to additional tax liability provided by the new law.

There are many new questions being raised by the national health care legislation that was passed into law earlier this year.  The Patient Protection and Affordable Care Act[1] and the, Health Care and Education Reconciliation Act of 2010,[2] created a number of significant changes to the landscape of the health care system in the United States.  The total cost of the program, is estimated at approximately $356 Billion dollars over the ten year period from 2010-2019. [3]However, revenue projections from taxes incorporated into the legislation are actually estimated upwards of $437 Billion dollars over that same ten year period. [4]

Now that we can reasonably be assured the health care bill’s cost is properly allocated and encumbered, let’s see how and where the revenue generating provisions will affect American taxpayers.

The largest single line item that will contribute to the funding of the health care legislation is a new surtax for Medicare.  Estimates that over $200 billion will be raised over 10 years, is a burden carried by only a small percentage of high income taxpayers, estimated at approximately the top 2% of all taxpayers, or those taxpayers who will earn more than $200,000 or $250,000 filing jointly. [5] This means approximately 98% of the population will not be required to contribute to the new surtax with regards to Medicare.  To read this article excerpted above, please access www.AdvisorFYI.com

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