By John W. Hazard, Jr.
The Affordable Care Act marches on and brings with it new taxes, regulations and mandates in 2013 and 2014. The law will not reach full implementation for several years, but its momentum for change continues to increase. As of January, 2013, we have a host of new taxes and a warning that we need to prepare for 2014. John Hazard, of Webster, Chamberlain & Bean, will present a brief summary/update of the law in a talk on April 5th at 10:15 a.m. Developments to be considered: Capital gains tax increases; hike in Medicare Payroll Tax; increase in “floor” of AGI [to 10%] for deduction of medical expenses on personal income tax return; elimination of tax deduction for employer-provided retirement RX drug coverage in coordination with Medicare Part D. Also, as of January 2013, ObamaCare imposes a $2,500 cap on Flexible Spending Account (FSA) contributions. The cap is to be indexed to inflation every year after 2013. The U.S. Senate voted 79-20 last week to repeal a 2.3 percent excise tax on medical devices. The so-called “medical device tax” became effective in 2013 and may not survive since the Senate vote made clear a surprising bi-partisan support. The Medical Device Manufacturers Association claims the tax has already cost affected manufacturers almost $400 million. The lopsided vote was, however, only for an amendment to the Senate budget, a rarely approved item these days, so more formal legislation will be needed to eliminate the tax.
There will be a hand-out at the presentation and time for Q & A.