Sample Accounting Research Summary Paper on New Taxes Within the Health Care Legislation

New Taxes Within the Health Care Legislation

In the recent years, the United States government has enacted various acts and policies that can help to improve the national revenue. The health care and education sectors have experienced some of the policy changes aimed at revenue improvement in the country. The Patient Protection and Affordable Care Act (PPCA) of 2010 is one of the major changes that have impacted the health care sector immensely. Through the act, the accessibility of health care insurance has been improved across the nation. Various people that could not access health care insurance can now do this.

Another act that has improved revenue is the Health Care and Educational Recreation Act of 2010 is another act that helped shape the health care system immensely. Through the act, the charges imposed on companies that manufacture various drugs as well as on insurance companies have been increased. This in essence leads to an increase in national revenue through increased taxation. The contributions paid by health care system users have also increased significantly.

To further improve the healthcare system while also maintaining high revenue, additional premiums have been established to bring in various impacts. The Premium Assistance Credits for instance, provide a refundable tax credit to those who file their tax returns through the new procedures. The objective of these credits is to encourage people to invest in health insurance (Howlett 66). In addition to this, Small Employer Tax Credits have also been instituted by the government to encourage small businesses to remit health insurance for their employees. This is based on the argument that there are many small businesses that do not submit employee health insurance returns due to the high costs involved. The government has also made it a point to increase tax premiums for high earners to generate additional income (Manchester 67). The government also hopes to improve revenue through excise taxes on high premium health insurance plans.

Apart from the aforementioned action plans, the government has also directed that certain drug manufacturers and insurers should be charged at given rates to increase revenue. This is to be further enhanced through the imposition of penalties for the violation of health insurance requirements. Employers who fail to ac quire health insurance covers for their employees and the unemployed who fail to purchase health insurance premiums will both be penalized. It is projected that the penalties will lead to the increase in the revenue obtained from the healthcare sector. There are various potential benefits associated with the two policies on health care. First, it is projected that the policies will help to reduce the number of uninsured elderly people (Elmendorf 2). Moreover, the policies will also help to increase the number of those who are insured for healthcare purposes.

The policies will also affect Medicare and Medicaid. In these sectors, it is expected that the policies will result in the increase of rates of free services such as consultation among other things (Boehner 2). In the economic context, the increased rates are bound to result in greater loss of employment and hamper business growth. From the economic impacts associated with the policies, it is expected that the country will experience various fiscal deficits. In conclusion, the PPACA and the Health care and Educational Reconciliation Act of 2010 have had immense impact on the health care sector. However, these impacts come with negative effects on the employment rates as well as the increased rates in Medicare and Medicaid.



Works Cited

Boehner, John. Obamacare: A Budget- Busting, Job-Killing Health Care Law: A Report on the Economic and Fiscal Consequences of the Patient Protection and Affordable Care Act & The Health Care and Education Reconciliation Act. USA: np, 2011. Print.

Elmendorf Douglas, W. CBO’s Analysis of the Major Health Care Legislation Enacted in March 2010. Washington USA: Congressional Budget Office, 2011. Print.

Howlett, Christian. The Budget and Economic Outlook: An Update. USA: Congressional Budget Office, 2011. Print.

Manchester, Joyce. CBO’s 2011 Long-Term Budget Outlook. USA: Congressional Budget Office, 2011. Print.


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