At a party recently someone said that at least one tax included in the Affordable Care Act would tax corporations on their revenues rather than their profits. Thus companies that plow most of their profits back into the company (as is somewhat common with start-ups) are at a distinct disadvantage.
The man who said this has a friend with a company who claims he will either have to layoff a number of employees or (more likely) go out of business.
Is it true that one or more taxes on companies will be based on revenues?
As to whether this will drive the man’s friend’s company (or any others) out of business is more of a GD question. It seems more likely to me that they will simply raise the price of the device by 2.3%.
Are there any taxes at all included in (or even entailed by) the Affordable Care Act? Surely it is about regulating insurance, and making certain people who have not previously done so provide or buy private insurance. It does not really spend money at all (except, I suppose, for some administrative/enforcement costs, like any new law).
Yes, there are quite a few taxes and tax provisions (pointed out by dracoi’s link).
The money is primarily spent on subsidies that people making under 200% (IIRC) of the poverty level receive to purchase private insurance on the state-run exchanges (for those states that set it up). Other spending includes expanding Medicaid coverage (again, for states that don’t opt out of the expansion). There is also spending in “experimental” programs and plenty of other expenditures.
The Affordable Care Act requires employers to withhold an additional 0.9% of Medicare taxes on wages over $200,000 paid in 2013. Currently, the Medicare tax rate is 1.45% and this rate will continue to apply to wages up to $200,000. A rate of 2.35% will apply to wages over $200,000.