Deep in the list of taxes that the presidentâ€™s Obamacare plan will hit Americans with is a 40 percent excise tax on health plans typical union members have, especially in Midwest states, according to a new analysis.
The Obamacare tax wonâ€™t take place until 2018, but when it does it will smack high cost, or so-called â€śCadillacâ€? health insurance plans, according to the group Americans for Tax Reform.
â€śThis tax will most directly affect union families and early retirees, who are likely to be covered by such plans,â€? said ATR in a review of upcoming tax cuts in the health reform package set to go into effect in January. It will target plans whose premiums exceed exceed $10,200 for an individual and $27,500 for a family.
â€śMiddle class union members tend to be covered by such plans in states like Ohio, Pennsylvania, Wisconsin, and Michigan,â€? said ATR.
Unsaid: Many more people are likely to be hit if insurance firms raise premiums by up to 400 percent after Obamacare kicks in. A House report provided to Secrets said that 17 major insurers said the average premium increase will be 100 percent and others could top 400 percent.
ATR also warned that Americans participating in flexible spending accounts at work will no longer be able to put away whatever they want, thereby cutting their tax bill. The cap will be $2,500 a year, resulting in a $13 billion tax bill over the next 10 years for those who used to put away more than $2,500.