The passage of the Health Care and Education Reconciliation Act of 2010 (H.R. 4872) (Reconciliation Act) by Congress on March 25, 2010 completed a massive overhaul of the nation’s health insurance and health delivery systems. The new laws include more than $400 billion in revenue raisers and new taxes on employers and individuals.

The health care reform package does not mandate employer-paid coverage, but instead includes “play or pay” language. The package also imposes a penalty on nonexempt individuals who fail to carry minimum essential coverage. On the revenue side, the health care package includes an additional Medicare tax on wages and self-employment income of higher income taxpayers, a new Medicare contribution tax on net investment income, and a delayed excise tax on high-dollar insurance plans, among its $437 billion in new taxes, fees and penalties.

To read the entire special report http://tax.cchgroup.com/legislation/Senate-Healthcare-Fixes-Bill-03-25-10.pdf

2010 Hiring Incentives to Restore Employment (HIRE) Act

President Obama signed his first major tax bill of 2010 on March 18. The new law provides incentives for hiring and retaining workers, along with a one-year extension of expensing and changes to Build America Bonds. The HIRE Act is partially offset by a package of new foreign account tax compliance rules and a further delay in the worldwide interest allocation rules. In addition, certain corporate estimated tax payments are also accelerated to help offset the cost of the tax incentives.

The HIRE Act creates an immediate incentive for businesses to hire unemployed individuals and an increased benefit the longer the new worker is on the payroll. Small businesses get an immediate tax benefit too, from the extension of and expensing extension.

Congress hopes that the HIRE Act’s enhanced tax credit bonds will help pump over $4.5 billion into local economies. For the complete special report, http://tax.cchgroup.com/legislation/Hire-Act-Signed.pdf.