Preface: Legislators in the US Senate introduced a new bill this week, The Better Care Reconciliation Act of 2017. The following are a few applicable excerpts from the bill.

 

Senate Bulletin – New Health Care Bill Provisions

A new Senate bill was introduced this week: The Better Care Reconciliation Act of 2017. Although still a discussion draft documents, the bill has certain provisions relevant to business owners and individual taxpayers.

Firstly, the new bill would eliminate the Section 5000A individual health insurance mandate with a reduction of the penalty to zero, effective retroactive to 2016. This is to say individual taxpayers would no longer be required to pay penalties for lack of mandatory health care coverage.

Secondly, the new bill would REDUCE the Section 4980H penalty, with regards to employer health care coverage requirements. This would be effective retroactive to January 1, 2016. Therefore, employers would still be required to provide health coverage, but the penalty would be reduced for noncompliance.

In addition, the 0.9% Medicaid surtax on high wage earners would be repealed, effective for earnings received after 2022.

The 3.8% net investment income tax would be repealed, beginning for the 2017 tax year, legislation states this to be effective for tax years after December 31, 2016.

Final approved legislation could differ substantially from current discussion documents.

This is not construed to be tax advice. This blog is for education purposes only. For specific details, talk with your tax accountant.