{"id":157,"date":"2009-07-15T11:26:33","date_gmt":"2009-07-15T16:26:33","guid":{"rendered":"http:\/\/www.nw-cpa.com\/?p=157"},"modified":"2009-07-15T11:26:33","modified_gmt":"2009-07-15T16:26:33","slug":"house-health-reform-bill-includes-surtax-on-high-income-earners","status":"publish","type":"post","link":"https:\/\/www.nw-cpa.com\/?p=157","title":{"rendered":"House health reform bill includes surtax on high-income-earners"},"content":{"rendered":"<p>On July 14, the House Democratic leadership released the text of the &#8221;America&#8217;s Affordable Health Choices Act of 2009,\u201d which is slated to be taken up by the House Ways &amp; Means Committee on July 16. Title IV of the Act would make numerous tax changes to pay for the projected $1 trillion price tag of comprehensive national health care reform.<\/p>\n<p>Title IV of the bill includes the following changes to the Code:<\/p>\n<ul>\n<li>High income individuals married filing a joint return or surviving spouses would face a surtax equal to: 1% of modified adjusted gross income (AGI) over $350,000 but not over $500,000; 1.5% of modified AGI over $500,000 but not over $1 million; and 5.4% of modified AGI over $1 million. The dollar amounts for separate filers would be half of the joint filer amounts; for other filers the amounts would be 80% of the joint filer amounts. The surtax for modified AGI over $350,000 but not over $1 million would rise for post-2012 tax years unless federal health reform savings hit a predetermined target level.<\/li>\n<li>A tax on individuals who don&#8217;t have acceptable health benefit plan coverage (as defined by the bill). In general, the tax would equal 2.5% of modified AGI in excess of the taxpayer&#8217;s exemption amount, but not more than the \u201cnational average premium\u201d for that year. A number of exceptions would apply (e.g., for dependents, objectors on religious grounds).<\/li>\n<li>Health insurers would be required to file information returns for the individuals they cover.<\/li>\n<li>Employers that fail to satisfy the bill&#8217;s health coverage participation requirements would face a tax of $100 per day per each non-covered employee.<\/li>\n<li>Employers electing not to provide health benefits for employees would pay an excise tax equal to 8% of wages (the excise tax would be less for small employers).<\/li>\n<li>Small businesses would get an employee health coverage tax credit.<\/li>\n<li>The application of the worldwide allocation of interest would be delayed (until the first tax year beginning after 2019) and as a anti-tax-avoidance measure, there would be new limitations on treaty benefits for certain deductible payments.<\/li>\n<li>The economic substance doctrine would be codified. An accuracy related penalty would apply for underpayments due to transactions lacking economic substance, and a stiff penalty would apply for nondisclosure of \u201cnoneconomic substance transactions.\u201d<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>On July 14, the House Democratic leadership released the text of the &#8221;America&#8217;s Affordable Health Choices Act of 2009,\u201d which is slated to be taken up by the House Ways &amp; Means Committee on July 16. Title IV of the Act would make numerous tax changes to pay for the projected $1 trillion price tag &hellip; <a href=\"https:\/\/www.nw-cpa.com\/?p=157\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">House health reform bill includes surtax on high-income-earners<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[399],"class_list":["post-157","post","type-post","status-publish","format-standard","hentry","category-federal-income-tax","tag-federal-income-tax"],"_links":{"self":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts\/157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=157"}],"version-history":[{"count":3,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts\/157\/revisions"}],"predecessor-version":[{"id":160,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts\/157\/revisions\/160"}],"wp:attachment":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}