From the National Federation of Independent Business
On March 23, the president signed into law H.R. 3590. NFIB strongly opposes this legislation and key voted against its passage in the House and Senate. The public’s overwhelming opposition to the bill’s mandates, penalties and fees are well documented in newspapers, the internet and on television and talk radio. However, what have not received nearly enough attention are the increases in the size, scope and power of the Internal Revenue Service (IRS) that will occur as a result of the new law.
INCREASED TAXES
The healthcare reform bill is the BIGGEST TAX INCREASE in American history. Almost doubling the previous record, the bill increases taxes by $569 billion.
New taxes on wages – increasing the worker’s portion of the Medicare tax to 2.35%, up from 1.45% (goes into effect in 2013).
New 3.8% Medicare tax on certain capital gains, interest, dividends, and rents (2013).
This will be paid by the individual, and is the first time investment income will be taxed to pay for entitlement programs.
New taxes on individual and small business health insurance plans (2014).
The new tax is applied to individual and small group market health insurance plans and based on the market share of the insurance provider. Big business and union plans were exempted.
Insurance companies will pass this new tax on to the individual and small business consumer in the form of higher premiums. One study estimated it could raise the cost of a family-plan by $500.
New taxes on businesses with more than 50 workers (including part-time workers) that do not provide insurance or do not provide government approved insurance (2014).
For non-offering firms, with more than 50 workers, the new tax is $2,000 per worker;
For employers who offer but have a worker/s who opt-out of the employer-offered coverage, the employer is still taxed, this time $3,000 per worker not enrolled in the employer-offered plan.
New taxes on individuals that do not buy insurance or government approved insurance (2014).
This tax will be either be a flat fee or a percentage of your income.
Increased tax paperwork
New reporting requirements on all business-to-business transactions over $600 (goes into effect in 2012).
Today, some services over $600 are reported on the 1099 form;
The new law expands reporting to all services and property of over $600;
This means you will have to fill out a 1099 for every transaction, send a copy to the I.R.S. and send a copy to the business you transacted with.
This provision is very vague using the term ‘certain property.’ Because it is impossible to tell what property will be covered, this just another government "wait and see" game that small employers simply do not have time for.
According to the 2003 NFIB Small Business Poll on Paperwork and Record-Keeping, small employers spend, on average, $74 per hour on tax paperwork. This new requirement will simply lead to more time and more money spent on tax paperwork.
Worst of all, this provision has nothing to do with healthcare. It is simply a money grabber for new government programs.
Increased size, scope and power of the I.R.S.
Estimated 16,500 new I.R.S. auditors and agents to enforce the new healthcare mandates and process new paperwork.
The I.R.S. will now be in charge of verifying if you are complying with the individual and employer mandates in the new healthcare law.
$10 billion over 10 years in new funding to the I.R.S. to enforce the healthcare mandates and process new filings.