New Taxes Loom to Pay for Health-Care Overhaul

"...The Senate report also suggests limiting the amount that workers can contribute to flexible spending accounts -- tax-free accounts workers use to pay for prescriptions and other medical expenses -- or possibly eliminating them altogether. Nonprofit hospitals that don't provide enough charitable care or meet other requirements would pay new taxes. Also on the table are several taxes aimed at encouraging healthier behavior. The committee is proposing to increase the tax on alcohol, and eliminate the current tax variances between beer, wine and alcohol. The committee also proposed levying the first federal tax on sugary beverages. That would apply to soft drinks, fruit and vegetable drinks, energy and sports drinks, iced teas, iced coffees and flavored milk and dairy drinks. It wouldn't apply to drinks sweetened with noncaloric sweeteners...."

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