Taxes and Fees

The woman who ran the office accused of targeting conservative groups is now running the office tasked with implementing ObamaCare.

Groups on both sides of the healthcare debate are lobbying Congress to scale back a tax in President Obama's healthcare law that could end up costing the states billions of dollars.

Supporters and opponents of the healthcare law are both eyeing changes to the law's tax on insurance plans, which could cost the states nearly $15 billion.

The Affordable Care Act includes a new excise tax on insurance plans, and the tax applies to the privately managed Medicaid programs many states use. Taxing Medicaid managed care plans could force state governments to pay the tax.

The Republican Governors Association (RGA) raised the issue in a recent letter to congressional leaders, saying the tax "merits your urgent attention."

The newly unveiled measure could disrupt Medicaid programs and other services, according to state governments.

Comprehensive tax reform will probably be the venue for any effort to repeal taxes in President Obama's healthcare law, Rep. Charles Boustany (R-La.) said Tuesday.

Boustany, a member of the powerful Ways and Means Committee, said a major overhaul of the tax code could include efforts to repeal some of the healthcare law's new fees, including taxes on medical devices and health insurance plans.

"Any tax measures will be considered, most likely, in the context of fundamental tax reform," Boustany told reporters after a hearing on the healthcare law's tax provisions.

Sens. Jay Rockefeller (D-W.Va.) and Sherrod Brown (D-Ohio) pressed Congress on Tuesday to renew an expiring tax credit that helps unemployed people buy health insurance.

The cited a recent Government Accountability Office (GAO) report that said the tax credit is often more generous than Medicaid coverage or subsidized private coverage — the options President Obama's healthcare law would make available to people who now receive the credit, if it is allowed to expire.

The Health Coverage Tax Credit (HCTC) pays 72.5 percent of the cost of health insurance for people who lost their jobs due to outsourcing. The credit was extended in a package of 2011 trade agreements, but is set to expire at the end of this year.

Families' insurance costs could rise as much as $7,000 over a decade, according to America's Health Insurance Plans.

Rep. Jim Jordan (R-Ohio) says stopping the healthcare law's revenue hikes must be part of deal on the debt. 

Rep. Charles Boustany Jr. (R-La.) announced Friday that his bill to repeal one of the taxes in President Obama's healthcare reform law has 218 co-sponsors — enough to ensure it would pass the House.

The Republican-led House has voted more than 30 times to repeal or defund all or part of the Affordable Care Act, so Boustany's bill never would have faced much trouble. But it targets a provision that has faced steady, consistent opposition from Republicans as well as the insurance industry.

Republicans warn IRS filing requirements for individuals and businesses seeking tax credits are too onerous. 

Americans for Tax Reform, the group led by anti-tax activist Grover Norquist, attacked President Obama on Tuesday over his healthcare law's tax on tanning beds.

The tax took effect two years ago, but ATR revived its criticism this week, saying the tax would disproportionately affect women. The majority of tanning salons are owned by women, according to industry estimates cited by ATR.
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