TOP TEN TAX INCREASES INCLUDED IN H.R. 3962

(as modified by the manager’s amendment)

From the Republican staff of the U.S. House Ways and Means Committee:

1.     SMALL BUSINESS SURTAX (Sec. 551, p. 336)………..………$460.5 BILLION

2.     EMPLOYER MANDATE TAX* (Secs. 511-512, p. 308)…………..$135.0 BILLION

3.     INDIVIDUAL MANDATE TAX* (Sec. 501, p. 296)………….…..$33.0 BILLION

4.     MEDICAL DEVICE TAX* (Sec. 552, p. 339)………………….….$20.0 BILLION

5.     $2,500 ANNUAL CAP ON FSAs* (Sec. 532, p. 325)………………….$13.3 BILLION

6.     PROHIBITION ON PRE-TAX PURCHASES OF

OVER-THE-COUNTER DRUGS THROUGH

HSAs, FSAs, AND HRAs* (Sec. 531, p. 324)……………………….$5.0 BILLION

7.     TAX ON HEALTH INSURANCE POLICIES

TO FUND COMPARATIVE EFFECTIVENESS

RESEARCH TRUST FUND* (Sec. 1802, p. 1162)…….……….……$2.0 BILLION

8.     20% PENALTY ON CERTAIN

HSA DISTRIBUTIONS* (Sec. 533, p. 326)…………………………$1.3 BILLION

9.     OTHER TAX HIKES AND INCREASED

COMPLIANCE COSTS ON U.S. JOB CREATORS……………….$80.3 BILLION

Ø  IRS reporting on payments to certain businesses

(Sec. 553, p. 344) ……………………………$17.1 BILLION

Ø  Repeal implementation of worldwide interest allocation rules

(Sec. 554, p. 345)……….….………………..$26.1 BILLION

Ø  Cellulosic Biofuel Credit / deny eligibility for “black liquor”

(New Sec. 555, inserted on p. 346)………….$23.9 BILLION

Ø  Override U.S. treaties on certain payments by “insourcing” businesses

(Sec. 561, p. 346)……………………………………….$7.5 BILLION

Ø  Codify economic substance doctrine and impose penalties

(Sec. 562, p. 349)……………………………………….$5.7 BILLION

10. OTHER REVENUE-RAISING PROVISIONS………………….….$2.2 BILLION

TOTAL TAX INCREASES………….. $752.6 BILLION

* = violates President Obama’s pledge to avoid tax increases on Americans earning less than $250,000

Sources:  Joint Committee on Taxation, Congressional Budget Office

Note:  All section numbers refer to H.R. 3962 as modified by the manager’s amendment; all page numbers refer to H.R. 3962 as introduced