Wednesday, December 5, 2012

And About Those Annuity Contracts

The Obamatax machine just keeps rolling. If Obama is going to grant universal health care rights to the poor, middle class and uninsured, the money has to come from somewhere.

They start by robbing the poor of their Medicare benefits under the guise of eliminating "waste, fraud and abuse" to the tune of $716 billion or so. These are old folks who really don't have many years left so why do they need health insurance?

Then they impose new taxes on medical equipment. Taxes that will be passed on to the consumer in the form of higher costs and higher insurance premiums to cover the higher costs.

Starting in 2013 people who have high, unreimbursed medical bills and itemize their deductions will need to be very sick, very poor or both to write off a portion of those bills. Currently such bills must exceed 7.5% of your AGI but for tax years 2013 and later your medical bills must exceed 10% of AGI.

Good news for seniors. You are exempt for years 2013 - 2016.

Seems only fair since you are forfeiting $716 billion in Medicare funding.

There are a few other new Obamataxes that kick in on January 1, 2013 such as the Special Needs Kids Tax, the Your Employer Provides Rx Coverage for Medicare Beneficiaries Tax and the Rich Executive Excessive Compensation Tax. You can read more about these on Congressman Jeff Duncan's site.

As if that isn't enough, we are now finding out about this.

New taxes created by the big federal health tax laws could hit some high-income annuity and trust users starting in 2013.The Internal Revenue Service (IRS) has given more information about how it expects to handle the taxes in three new batches of documents:
The proposed regulations and the FAQ answers relate to provisions of the Patient Protection and Affordable Care Act of 2010 (PPACA) and PPACA's sister, the Health Care and Education Reconciliation Act of 2010 (HCERA).Congress enacted HCERA to make last-minute changes to PPACA.
PPACA wasn't enough, so Congress enacted HCERA.
In the Section 1411 draft regulations and the FAQ answers, IRS officials refer to life insurance policies; 401(k) plans, 457 plans and other retirement plans that qualify for special treatment under the Employee Retirement Income Security Act (ERISA); non-qualified deferred compensation plans; and estates and trusts.In the additional Medicare tax draft regulations, officials refer briefly to non-qualified deferred comp plans.
I can hardly wait.

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