Owner/Agent, Pelfrey Financial Services, Lexington, KY
Individuals will not be taxed on health insurance. Employers will have various taxes over the few years. There will be a $63 fee per covered person that the employer will have to pay starting in 2014. It is likely that many employers will pass this cost on to employees in various ways.
The "Cadillac Tax" on high-end employer-provided health insurance will be become effective until 2018. At that time, plans costing more than $10,200 for individual plans and $27,500 for family plans will face a 40% excise tax. Most employers are expected to reduce benefits on these "luxury" policies to avoid the tax.
Enrolled Agent-licensed to practice before the IRS, Samuel N Smith, EA, South Carolina
There is a "net investment tax" of 3.8% that is levied on "individuals, trusts and estates". Then each year when the individual files their tax returns the tax preparer is reponsible for completing the form that documents if the individual has credible health insurance coverage. If not, then the individual has to pay "the fine" which is a tax. Now that ObamaCare is on the ropes and apparently going down for the count perhaps some sanity can be returned back into the health insurance industry
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The "Cadillac Tax" on high-end employer-provided health insurance will be become effective until 2018. At that time, plans costing more than $10,200 for individual plans and $27,500 for family plans will face a 40% excise tax. Most employers are expected to reduce benefits on these "luxury" policies to avoid the tax.