ON-Lion Letter
Due to a provision in the new national health-care law taking effect on January 1, 2011, Americans will no longer be able to use their pre-tax Flexible Spending Account (FSA) and Health Savings Account (HSA) dollars to purchase non-prescription, over-the-counter medicines (with the exception of insulin), warns Americans for Tax Reform (ATR) in Washington, D.C.

In the past, health consumers have been able to use these pre-tax accounts to purchase non-prescription, over-the-counter medicines.  But on New Years Day 2011, the 40 million Americans who use FSAs and HSAs can no longer to use them to buy simple, everyday medicines like aspirin, antacids, laxatives, menstrual-pain relievers, antihistamines, stimulants, anti-ulcer medicines, athlete's-foot cream, cough medicine, motion-sickness medicine, anti-diarrheal medicine, and decongestants.

The provision is just one of Obamacare's two dozen new or higher taxes totaling nearly $600 billion over the next decade, according to ATR.

Since the tax increase will affect any family that has an HSA or FSA, it is thus a seemingly clear violation of President Barack Obama's oft-repeated promise not to raise "any form of taxes" on any family making less than $250,000 per year.

The Lynde and Harry Bradley Foundation in Milwaukee substantially supports ATR.
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