Saturday, January 12, 2013

Brace Yourself

Got crooked teeth? Do you, or your children, need braces? Well get ready. The cost of orthodontic braces just went up . . . thanks to Obamacare.
As of Jan.1, Obamacare imposes a new tax of 2.3 percent on medical device manufacturers, including those who make dental braces.  The tax is imposed on gross sales -- even if the company does not earn a profit in a given year.  While the tax will be paid to the IRS by the manufacturer, the tax will be passed along as a higher cost of the product, ultimately to be borne by the parent buying the braces for their child.  With the cost of braces being as high as $7,625this new tax could raise the cost of these braces by $175.
Americans for Tax Reform

But wait, there's more!
As of Jan. 1, the 30-35 million Americans who use a pre-tax Flexible Spending Account (FSA) at work to pay for their family’s basic medical needs face a new government cap of $2,500. This will squeeze $13 billion of tax money from Americans over the next ten years. (Before Obamacare, the accounts were unlimited under federal law, though employers were allowed to set a cap.) A parent looking to sock away extra money to pay for braces would find themselves quickly hitting this new cap, meaning they would have to pony up some or all of the cost with after-tax dollars.  Needless to say, this tax will especially impact middle class families
 All this is in addition to a 2% drop in your take home pay as of January 1, 2013.

And you thought only the wealthy were requried to pay their "fair share"

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