Skip to comments.The ObamaCare tax hike that loses five times what it brings in
Posted on 03/31/2010 11:57:54 PM PDT by Nachum
We turn to the Wall Street Journal for the math on what it will cost to raise taxes on corporations retiree prescription drug coverage. This is the provision that has caused several corporations to take markdowns recently.
The bottom line: by closing this loophole which was originally created to dissuade companies from dumping retirees prescription costs into Medicare Part D the government could lose more than five times what it brings in.
The Employee Benefit Research Institute calculates that the 28% subsidy on average will run taxpayers $665 in 2011 and that the tax dispensation is worth $233. The same plan in Medicare costs $1,209. Given that Congress has already committed the original sin of creating a drug entitlement that crowds out private coverage, $233 in corporate tax breaks to avoid spending $1,209 seems like a deal. If one out of four retirees is now moved into Medicare, the public fisc will take on huge new liabilities.
(Excerpt) Read more at washingtonexaminer.com ...
The list, ping
Rats do everything backwards.
The whole point was to front-end load this with the temporary increase in revenues at first as one gimmick used to give Obamacare the illusion of being ‘deficit neutral.’ and then placing these retirees under immediate government auspices and dependency by clearly understanding many companies would drop the prescription benefit for their retirees.
Basically, they are getting what they want and have dealt with the fallout by having Waxman conduct a few show trials for the fuhrer.
If you aren’t angry about what’s going on, you haven’t been paying attention.
Just a thought on this monstrosity. From my reading of this, companies with less than 50 employees are exempt. What if companies fire ALL their workers, save 49, and have the employees become contract workers from temp agencies? The company has 49 employees and the temp agency has a boatload of contract employees. Both sides win and 0bambicare dies.
But, but... the Republicans are all starting to say that “repeal” is not possible or even smart. I think their theme song is, “Don’t worry, be happy.”
“Repeal or Rebel”
(my new tag - should be a ubiquitous bumper sticker)
Actually not all Republican leaders are saying that, only a few and the MSM is trying to make it sound as if all Republican politicians are against repealing it. This is another example of their attempt to divide and conquer.
I’ve been making this point since the first charges of racism surfaced a week or so ago. If it’s racist to oppose Obamacare, then Obamacare is racist.