Earlier this month we had provided a summary of the potential tax provisions in the Republican sponsored healthcare legislation. Surprisingly, this legislation has been removed from the agenda signaling there will not be an immediate change to healthcare laws leaving the Affordable Care Act (Obamacare) in place. The healthcare reform bill was removed at the direction of President Trump as it appears that it was unlikely to pass in the House of Representatives.
This will leave many business owners unhappy as there was hope that some of the penalties and compliance requirements imposed by Obamacare would be removed going forward. Additionally, many individual taxpayers will be required to continue to pay the Medicare surcharge if they are single with earnings greater than $200,000 ($250,000 if married filing joint) and the net investment income tax if they are single with adjusted gross income greater than $200,000 ($250,000 if married filing joint).
It is unclear at this time if there will be new legislation focusing on healthcare reform will be introduced. We will keep you informed if there are any other developments in this area.