List of Revenue (Tax) Increases and Revenue (Tax) Decreases in Baucus Bill October 21, 2009 Gerald Prante Gerald Prante Per CBO and JCT description, here is a list of the revenue increases and decreases in the Baucus bill, along with their 10-year score (2010-2019) in billions of dollars. We will be listing a summary of the spending provisions on Thursday. Revenue Increases (many of which are taxes) Penalty Payments by Uninsured Individuals ($4) Penalty Payments by Employers ($23) 40% excise tax on health coverage in excess of $8,000/$21,000 indexed for inflation by CPI-U plus 1% and increased thresholds for over age 55 retirees or certain high-risk professions; levied at insurer level; employer aggregates and issues information return for insurers indicating amount subject to the excise tax; nondeductible; high 17 state transition relief ($201.4) Employer W-2 reporting of value of health benefits (negligible) Conform the definition of medical expenses for health flexible spending arrangements to the definition of the itemized deduction for medical expenses (excluding over-the-counter medicines prescribed by a physician) ($5.4) Increase the penalty for nonqualified health savings account distributions to 20% ($1.3) Limit health flexible spending arrangements in cafeteria plans to $2,500 ($14.6) Require information reporting on payments to corporations ($17.1) Additional requirements for section 501(c)(3) hospitals (negligible) Impose annual fee on manufacturers and importers of branded drugs ($22.2) Impose annual fee on manufacturers and importers of certain medical devices ($38.6) Impose annual fee on health insurance providers ($60.4) Study and report of effect on veterans health care (no revenue effect) Eliminate deduction for expenses allocable to Medicare Part D subsidy ($5.4) Raise 7.5% AGI floor on medical expenses deduction to 10%; AGI floor for individuals age 65 and older (and their spouses) remains at 7.5% ($15.2) $500,000 deduction limitation on taxable year remuneration to officers, employees, directors, and service providers of covered health insurance providers ($0.6) Fraud, Waste and Abuse ($2) Premium Taxes for Patient-Centered Outcomes Research ($2.6) Associated Revenues Resulting from Spending Changes ($11.6) Revenue Decreases Tax Credits for Small Business Employers ($23) Provide income exclusion for specified Indian tribe health benefits (less than $50 million) Simple cafeteria plan nondiscrimination safe harbor for certain small employers (negligible) Qualifying therapeutic discovery project credit ($0.9) Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Center for Federal Tax Policy Business Taxes Individual and Consumption Taxes