Freedom Line Blog

The Ways and Means Committee just sent out a summary of all the “revenue enhancements” (err … tax hikes) in the new Pelosi health care bill.

However, these revenue enhancements add up to only ~$565.5 billion, which falls far short of the bill’s $800-$900 billion price tag.  The list of “spending cuts” has not yet been released.

Here are some highlights from the summary:

• A $5 billion tax hike achieved through narrowing the definition of a qualified medical deduction.   Currently, individuals with medical expenses exceeding 7.5% of adjusted gross income can deduct those expenses for tax purposes, but the House bill severely limits this medical deduction, forcing taxpayers to pay more in out-of-pocket medical expenses.

• A $13.3 billion tax increase achieved through limiting Flexible Spending Accounts (FSA).  Under current law, individuals may contribute money to tax-free FSA’s, but the new bill limits this amount, thereby taxing income used for medical expenses.

• $460 billion tax hike on “high-earners.”

• $20 billion tax on the sale or lease of medical devices … because taxing artificial limbs and pacemakers is the “American Way.”

Click here for the Ways and Means summary.