Taxes on health insurance coverage

SPRINGFIELD, Mass. (WWLP) - There are some concerns that middle class workers and small business owners will pay more under the new Affordable Care Act.

President Obama's health care reform law took ideas from what we already have here in Massachusetts, but once the national law takes full effect, it may take a toll on some business owners.

A new study says under the Affordable Care Act, beginning in 2018, small business owners will pay about $87,000 over a 10-year period in taxes.

These excise taxes on insurance plans could also apply to police officers and teachers.

But tax attorneys say it is too soon to come up with an exact amount.

The only fear right now is that business owners may have to decrease hiring once they start paying these taxes, thus affecting the unemployment rates.

Paul Mancinone, tax attorney in Springfield, told 22News “I think big businesses, very large businesses will face the same thing. Increased insurance coverage will affect everybody who has to pay it. There's simply less leftover to do other things. That includes employment.”

Tax attorneys say right now we don't need to worry about more money being taken out of our paychecks. However, beginning next year people without coverage will pay $95 or 1% of taxable income, whichever is greater.