Impact of the Short-term Spending Bill on Taxes

Index - https://steemit.com/tax/@alhofmeister/56nc4n-tax-blog-index

Discussion
This past Monday (January 22), H.R. 195 was signed into law. One of the main changes of the bill was to suspend the implementation of several taxes created by the Affordable Care Act (commonly referred to as "Obamacare"). Below is a summary of the changes.

1. "Cadillac" tax - The implementation of the 40% excise tax on health plans which provided excess benefit to employees under an employer-sponsored plan was extended 2 years from 2020 to 2022.

2. Medical device excise tax - Delayed the implementation of a 2.3% excise tax on the sales price of taxable medical devices by 2 years from 2018 to 2020.

3. Annual fee on health insurance providers - Further suspended the flat fee applied to health insurance companies (the fee was suspended for 2017 by another bill) for an additional 2 years so that implementation will occur in 2020.

References
https://tax.thomsonreuters.com/media-resources/news-media-resources/checkpoint-news/daily-newsstand/short-term-government-funding-bill-suspends-several-affordable-care-act-taxes/
https://www.accountingtoday.com/news/spending-bill-suspends-3-obamacare-taxes

Disclosure
Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.