Question

1. Discuss two revenue provisions of the PPACA. Do you think they are fair? 2. What are some of the reform activities that are being implemented in 2010?

Answer 1

On March 23, 2010 President Obama signed health reform legislation into law- the Patient Protection and Affordable Care Act (PPACA). To pay for expanded health insurance coverage, there are a number of health-related revenue provisions in PPACA. They are,

1. Additional Hospital Insurance Tax on High Income Taxpayers

2. Modify the Itemized Deduction for Medical Expenses

After these came into action, employers and employees each pay a tax of 1.45% to finance Medicare Hospital for insurance which includes additional hospital insurance on high income taxpayers. The law has caused a significant reduction in the number and percentage of people without health insurance. Certain elements in these were popular across the political spectrum, while others, such as the mandate to purchase insurance, created widely oppositions.

Some of the reforms that are being active since 2010 is as follows:

a) The President established a council called the National Prevention, Health Promotion and Public health Council to help to develop a National Prevention and Health Promotion Strategy. In which a 10% sales tax on indoor tanning took into effect since 2010.

b) New tax reporting changes came into effect since 2010.