Boustany Announces Hearing on Healthcare Reform Tax Provisions

In announcing the hearing, Chairman Boustany said, "The President's health care law imposes a number of new taxes and reporting requirements on individuals and various industries -- and many of those tax hikes hit the middle class. We are starting to see that these provisions make it harder for businesses to create good paying jobs and may adversely affect the quality and accessibility of health care. As the Committee moves forward with comprehensive tax reform, it is imperative that we examine the law's tax provisions and consider their impact on the administration of the tax code as well as on individuals, families, and employers."

BACKGROUND:

According to the Government Accountability Office (GAO), the President's health care law contains 47 tax or tax-related provisions. Estimates by the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) confirm that tax increases associated with the law total more than $1 trillion over the next ten years. Many of these provisions are already in effect, and others will become effective in 2014. Key provisions include: a tax on medical device and drug manufacturers, and health insurers; a tax on individuals and families who do not purchase government-mandated health insurance, a tax on employers that do not offer government-mandated health insurance, additional Medicare taxes and taxes on investment income.

In its review of the tax provisions of the President's health care law, the Subcommittee will consider the: (1) status of implementation of key tax provisions; (2) compliance issues associated with the tax provisions and accompanying regulations; and (3) economic effects of the provisions.