Healthcare Bill - What it Means and How it Affects Taxes

Yesterday President Obama singed the year-long much debated healthcare bill into law. The bill consists of a whopping $940 billion plan that is expected to provide health coverage to 32 million uninsured Americans. This historic event is a huge win for Democrats. It should be noted the controversy isn't over. Thirteen state Attorney Generals have already filed lawsuits. Not one Republican supported the bill. So come election time in November, the bipartisan potential could be out the window.

In any case, Obama made the primary objective of his presidency come to life. The actual bill and its 2,000 plus pages effectively standardizes healthcare. It will ensure that insurance coverage is the right of every U.S. citizen and will begin to reshape the way almost all Americans receive and finance treatment.

What does this mean for you? I mean, $940 Billion has to come from somewhere. Well, once again the logic sends tax collectors to those who have the most money. This author feels such practice is just poor economic practice, but be that as it may, it is the practice which will be used. Taxes will be going up for those making $200,000 a year and couples in the $250,000 range.

Here is yet another way to keep these persons from taking their expendable incomes and pumping that money back into the economy, which would generate business and jobs. Simple economics. The problem now is that we are in a time of uncertainty. No one is sure where the market is going. The major market indicators like the Dow are on the rise. Yet no one is buying. We are in a time of saving.

The bill also instates a new Medicare tax on the wealthy, who will be paying 2.35 percent now instead of the 1.45 percent, earned and unearned income, like dividends, and capital gains are also going to be hit with taxes. Employers will be paying out higher taxes as well. And corporations within the health care industry, such as pharmaceutical companies, are going to find higher fees and corporate taxes required of them.

Is it all going to be worth it? Well, we won't know that until long after it really takes swing in 2014. According to the Congressional Budget Office the law will cut federal budget deficits by an estimated $143 billion over a decade. It can be assumed that premiums will be lower and the insurance industry will come under new federal regulation. But we still don't know how it will affect the quality of medicine, its economic impact, and

I guess saving for your own medical expenses is the sort of thing that health care reformers cannot abide by. They would rather you buy insurance coverage you don't need and don't use that way the funds can be used to fund the healthcare of others. If you saved that money in an HSA, such would not be the case.

So when it comes to actually doing your taxes over the next couple of years, I think it would be wise to take advantage of tax preparation software, online resources, or area offices. This bill is going to tweak a few things and gives the IRS an unprecedented new role. Who do you think is going to collect the "penalties" the bill talks about? Article Source: http://EzineArticles.com/?expert=Jon_Hosier