Saturday, July 7, 2012

Obamacare and the ex-pat

Well, now that President has been proven to lie that Obamacare is not a tax, how does it affect us?
For starters, these seven new taxes apply to those of us earning less than US$ 200,000:

1. Flexible spending accounts now are capped at $2,500 per year

2. Medical expense exclusion raised from 7.5% of gross to 10%

3. 20% penalty for non-medical withdrawals from Healthcare Savings Account (up from 10%)

4. 10% excise tax on indoor tanning salons

5. 40% excise tax on higher cost health insurance plans

6. Medicine Cabinet Tax - no purchases of over-the-counter drugs from a Flexible Spending Account

7. New surtax of 1% of your adjusted gross income (rising to 2.5% by 2016) if the government doesn't like your health insurance

The minimum coverage (number 7) does not apply to US citizens living overseas. You can figure out what else does apply. If you earn over US$ 200,000.00, you have special taxes all your own. Next blog I'll talk about that.

Meanwhile, US health insurance costs will skyrocket and we all will subsidize those who have health care provided for them.

Sweet dreams.