Posted on 06/28/2012 5:49:22 PM PDT by tobyhill
In a landmark decision, the Supreme Court upheld the president’s signature health-care reform in a 5-4 decision. The court ruled the most controversial aspect of the law, the individual mandate, as constitutional, labeling it a tax and within lawmakers’ power.
So now that the legal uncertainty surrounding the Affordable Care Act has been eliminated, it’s time to delve into the tax implications and when they go into effect.
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Excise tax: This 2.3% tax on manufacturers, producers or importers on the sold price of a medical device is intended to help cover the cost of the sweeping legislation, but some experts worry it will create more paperwork and increase the costs of the goods. The tax goes into effect after Dec. 31, 2012.
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More fees and excise taxes: According to a report generated by the Treasury Inspector General of Tax Administration (TIGTA), a whopping “40% excise tax will be imposed on high-cost, employer-sponsored coverage if the value of coverage exceeds $10,200 (self-only) or $27,500 (not self-only),” to be paid by the coverage provider. The tax on distributions from Health Savings Accounts (HSA) and Archer Medical Savings Accounts for payment of unqualified medical expenses increased to 20% from 10% prior to 2011. A hospital insurance tax of 0.9% will be levied on high-income taxpayers ($250,000 married filing joint, or $125,000 single) effective after Dec. 31, 2012.
Beginning in 2013 the deduction for expenses allocable to Medicare Part D will be eliminated. Also the threshold for deducting medical expenses will increase to 10% from 7.5% of adjusted gross income. So if your medical expenses total $10,000 and your adjusted gross income is $100,000, your medical deduction will be zero. Prior to 2013 you would have enjoyed a $2,500 tax deduction.
(Excerpt) Read more at foxbusiness.com ...
So it’s okay to tax a person who works so everyone else who doesn’t work and runs around in OWS can have it free? I get it, the current Supreme Court figures they can turn America into the Borg Collective.
Should the ice cream manufacturers lobby....would sitting down for a ball game or movie, and not eating ice cream, would I be liable for ice cream inactivity tax Mr. Roberts?
This article tells it like it is. It’s a tax and congress has that authority. The dems didn’t want to call it a tax and they got away with it. Now it’s law and it will stay law. This is the final nail in this nation’s coffin. This will bankrupt us. Hopefully after I’m dead and gone. Killed by a death panel.
How many still think Obama will not tax anyone making less than $250,000 a year?
Anyone??
John Q. Ciotizen has just been F’ed by the United States Supreme Court and it’s liberal side starring Justice Roberts.
Thank you BO , Pelosi, Reid and the Democrat party.
Unlimited power to tax always and I mean always leads to slavery. This is why our founders hated taxation because it bound us in enslavement to a monarchy. Now those who work are being enslaved by a federal government who does not feel that all should work for whatever reason they are just entitled to your hard earned cash and physical labor.
This is slavery and it will get worse as the money supply dwindles. This is the way civilizations die. The best are always destroyed and the country may go for untold decades or centuries without progress unless of course some other opportunistic country steps in and takes over. In either case the greatest nation in known history will be gone.
The problem with the SCOTUS ruling it’s a tax is that people who pay the tax for not buying insurance is being taxed on a nothing. Roberts just returned us to exactly the reason why we broke away from England.
For later reading
This is just the tip of the iceberg. You think govt is corrupt now just wait until these bozos get in full swing. Scary.
If you make $60,000 the same healthcare would cost you $5000 out of pocket. If we assume a $20,000 tax bill the remaining income is $35,000.
This law aims directly at the upwardly mobile and small business men. Who is going to bust their ass to make $1000 extra bucks. The smart money will figure the break even point and only work to that level. I'm an It contractor and maker about $70,000 a year plus my private pension from a past employer of $30,0000. You can bet I will not be busting my ass working to make that extra $30K when it will all go to medical insurance and taxes.
This is the death knell for the economy - absolutely no incentives.
I was told that as of Jan 1st, 2013 a FOUR PERCENT tax will be imposed thru Obamacaretax on the seller on the total sale price of their house or property.
Any other FReepers heard of this??
The best one I heard is John Boehner should draft a bill requiring every US Citizen to purchase a gun.
I think I remember hearing about the RE sale tax. Hello, houses just got 4% cheaper!
Not a coincidence that SCOTUS ruled against Stolen Valor citing the right to “lie”. That’s exactly how ObamaCare was sold to everyone.
Firearm inactivity. Lobby hard.
Country is broke and the economy is in the tank
Ain’t no money for this monstrosity and the GOP better use
that in the election campaign
http://spectator.org/blog/2009/11/16/obama-administration-actuaries
One of President Obama's primary justifications for pushing health care legislation has been that the status quo is "unsustainable" because of the skyrocketing cost of medical care in the United States. The way to rein in costs, he argues, is to do adopt the policies that he and his fellow Democrats are proposing. But a new report by the government actuary at the Centers for Medicare and Medicaid Services, a branch of the Obama administration's Department of Health and Human Services, has found that the exact opposite is true. CMS took a close look at the health care bill that was passed by House Democrats and endorsed by the White House, and it found that not only would the bill not reduce health care costs -- it would increase them. Time and again, we have been reminded that the United States spends a higher percentage of its GDP on health care than any other nation -- about 16 percent. As Obama but it in his June speech to the American Medical Association, "If we fail to act, one out of every five dollars we earn will be spent on health care within a decade." Yet if we adopt the legislation supported by Obama -- which finances expanded coverage through tax increases and Medicare cuts -- health care spending will actually rise to 21.1 percent of GDP, according to CMS, compared to 20.8 percent if we simply do nothing.
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The two reasons they gave for the "overhaul" to healthcare: "to cut costs" - NOPE ,costs will go up actually. "to insure everyone" - NOPE, 10’s of millions will still be uninsured. In other words, the plan is a total failure. This is about power and control.
A little known fact of the Obamacare Law (among many other unpleasant surprises in the fine print you can be sure) is a 3.8% tax to be imposed when you sell your home--most people's greatest or only asset. 3.8% to Uncle Sam right off the bat. So how will that tax impact those who are involved in distress sales, who are underwater on their homes?
http://online.wsj.com/article/SB10001424052748704113504575264513748386610.html
When the people find that they can vote themselves money,
that will herald the end of the republic.
Ben Franklin:
It’s friggin over.
Thanks for the ping and info!!
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