Tax Provisions of Healthcare Law Remain in Effect Following Supreme Court Decision
(June 29, 2012)
Yesterday the U.S. Supreme Court upheld the key provisions of the Patient Protection and Affordable Care Act (PPACA), in the decision National Federation of Independent Business v. Sebelius, No. 11-393, slip op. (U.S. June 28, 2012).
As a result, the key tax provisions of the law will go into effect as originally enacted. The provisions include:
- Penalties for failure to comply with the individual mandate, beginning in 2014
- Penalties on large employers (with 50 or more employees) that do not provide employee health insurance or that provide insufficient employee health insurance, beginning in 2014
- A .9 percent increase to the Medicare payroll tax, beginning in 2013
- A new 3.8 percent tax on investment income of individuals, trusts, and estates, beginning in 2013
- A 40 percent excise tax on so-called high-cost employer-provided sponsored plans, beginning in 2018
The IRS has yet to release guidance on most sections of the law. In addition, the outcome of the November presidential election could lead to significant changes to PPACA.
An in-depth discussion of the tax provisions of PPACA is available on the Crowe Federal Tax Briefing Blog.
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