Skip to comments.Here comes the ObamaCare tax avalanche
Posted on 12/27/2013 7:45:27 AM PST by RoosterRedux
Instead of ruining so many peoples lives with poorly written mandates and blowing billions of dollars on bug-riddled federal and state exchange websites, Obama could have been honest in 2009 and simply proposed a huge Medicaid expansion, plus the tax increases needed to fund it. But that level of honesty is anathema to socialists. Their schemes always have to be dressed up as technocratic masterworks, brilliant plans that will not only fix the problems they love to exaggerate in this case, the number of Americans who were involuntarily uninsured but restructure and improve everyones life, at no cost to the Sainted Middle Class.
Obamas Big Lies were designed to fool voters into thinking ObamaCare would be essentially voluntary youd be able to keep everything the way it was if you wanted to. You probably wouldnt want to, because ObamaCare would be so super-awesome that its plans would go flying off the virtual shelves, but if you werent sold on entering the system, you could keep your old plan and your preferred health care providers.
In reality, none of that is true, and you wont be able to escape the ObamaCare tax avalanche, either. This is just the beginning, too. Wait until insurance companies caught in the death spiral of expensive, older, sicker customers buying Affordable Care Act policies, while the young and healthy take a pass on their planned shakedown, causes the industry to come looking for a bailout which will probably be financed with deficit dollars which will turn into irresistible demands for tax increases in a couple of years...
Wait until an army of desperate low-income ObamaCare policy holders begins crying out for relief from their huge deductibles, shaken at last from the delusion that Obama was going to give them free medicine.
(Excerpt) Read more at humanevents.com ...
It’s starting already
“Let’s just lower the medicaid age to 1 and effectively have single payer”
The Dems have always admitted the ultimate goal was single payer. Medicaid provides the framework and that’s where we’ll all eventually wind up. Then govt will truly have a stranglehold on every citizen.
I believe that I’ve read that these “fines” they mistakenly call “taxes” are not taxes, in fact. Even with Roberts’ SC edict they can be interpreted as taxes, the process of enactment creates a distinct problem with respect to legality. Hence, the confusion of ‘fines’ versus ‘taxes.
IIRC, I’ve read where the enforcement agency, the IRS, cannot execute a lien, confiscation, etc. of a “PPACA” fine on anything save a “return due to taxpayer.” It follows if one computes their liability with respect to taxes and arranges to have regular income withholding match taxes due, the IRS can’t do squat against your assets.
It will be interesting to see what happens.
Just found this purportedly unbiases website (it doesnt really sound like it) but it does list the Obamacare taxes. Read it and weep.
As you point out this is nothing but income redistribution.
The following list of new ObamaCare taxes collectively raise over $800 billion by 2022. Here is a complete list of new fees and taxes contained within ObamaCare:
ObamaCare Taxes That Most Likely Wont Directly Affect the Average American
2.3% Tax on Medical Device Manufacturers 2014
10% Tax on Indoor Tanning Services 2014
Blue Cross/Blue Shield Tax Hike
Excise Tax on Charitable Hospitals which fail to comply with the requirements of ObamaCare
Tax on Brand Name Drugs
Tax on Health Insurers
$500,000 Annual Executive Compensation Limit for Health Insurance Executives
Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D
Employer Mandate on business with over 50 full-time equivalent employees to provide health insurance to full-time employees. $2000 per employee $3000 if employee uses tax credits to buy insurance on the exchange (marketplace). (pushed back to 2015)
Medicare Tax on Investment Income 3.8% over $200k/$250k
Medicare Part A Tax increase of .9% over $200k/$250k
Employer Reporting of Insurance on W-2 (not a tax)
Corporate 1099-MISC Information Reporting (repealed)
Codification of the economic substance doctrine (not a tax)
ObamaCare Taxes That (may) Directly Affect the Average American
40% Excise Tax Cadillac on high-end Premium Health Insurance Plans 2018
An annual $63 fee levied by ObamaCare on all plans (decreased each year until 2017 when pre-existing conditions are eliminated) to help pay for insurance companies covering the costs of high-risk pools.
Medicine Cabinet Tax
Over the counter medicines no longer qualified as medical expenses for flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), health savings accounts (HSAs), and Archer Medical Saving accounts (MSAs).
Additional Tax on HSA/MSA Distributions
Health savings account or an Archer medical savings account, penalties for spending money on non-qualified medical expenses. 10% to 20% in the case of a HSA and from 15% to 20% in the case of a MSA.
Flexible Spending Account Cap 2013
Contributions to FSAs are reduced to $2,500 from $5,000.
Medical Deduction Threshold tax increase 2013
Threshold to deduct medical expenses as an itemized deduction increases to 10% from 7.5%.
Individual Mandate (the tax for not purchasing insurance if you can afford it) 2014
Starting in 2014, anyone not buying qualifying health insurance must pay an income tax surtax at a rate of 1% or $95 in 2014 to 2.5% in 2016 on profitable income above the tax threshold. The total penalty amount cannot exceed the national average of the annual premiums of a bronze level health insurance plan on ObamaCare exchanges.
Premium Tax Credits for Small Businesses 2014 (not a tax)
Advanced Premium Tax Credits for Individuals and Families 2014 (not a tax)
Medical Loss Ratio (MRL): Premium rebates (not a tax)
The link below provides a full list of ObamaCare Taxes by the IRS.
For a full list of taxes provisions from the IRS
Or see the latest publication by the joint tax committee on the Affordable Care Act.
Who Does ObamaCare Tax?
Lets take a look at how ObamaCares taxes affect certain income groups.
ObamaCare Taxes for High Earners and Large Businesses
Most of the new taxes are on high-earners (individuals making over $200,000 and families making over $250,000), large businesses (over 50 full-time equivalent employees making over $250,000), and industries that profit from healthcare. Essentially those who will see gains under ObamaCare are required to put money back in the program via taxes.
FACT: Tax increases generally affect single filers with an adjusted gross income (AGI) above $200,000 and married couples filing jointly above $250,000. Some of the tax increases dont kick in until single AGI hits $400,000 and married filing jointly AGI hits $450,000.
ObamaCare Taxes for the Average American With Health insurance
For most of the 85% of Americans with health insurance, making less than $250,000, most of the new taxes wont mean much of anything although certain taxes below will affect specific individuals and families.
ObamaCare Taxes for the Average American Without Health insurance
The 15% of Americans without health insurance will be required to obtain health insurance (Individual Mandate) or will face a tax penalty.
The good news is that many uninsured will be exempt from the Individual mandate due to income, offered cost assistance through the marketplace including Tax Credits (also available to small businesses), qualify for Medicaid, or will get insurance through work (the Employer Mandate requires large employers to insure full-time employees by 2015). Adults who are under 26 will be able to stay on their parents plan as well, this will help to limit the number of young people who will pay the fee. Both the employer and individual mandates are part of our shared responsibility to expand the quality and affordability of health insurance in the United States as a trade for our new benefits, rights and protections.
ObamaCare Taxes for Small Businesses
Small businesses with less than 25 full-time equivalent employees will have access to tax credits to reduce premium costs of group plans.
ObamaCare Taxes for Specific Groups With Health Insurance
Here are a few changes that my affect specific groups of Americans with health insurance:
Other tax provisions such as changes medical deduction thresholds, HSAs, MSAs, and FSAs may impact some Americans by limiting tax deductions.
The Medical Loss Ratio (MLR or 80/20 rule) will mean that some Americans may get rebates if health insurance companies spend on non-healthcare related expenses.
Tax provisions like the 10% tanning bed tax, taxes on drug companies, taxes on medical devices and taxes on health insurance companies selling insurance on and off the exchange may affect the amount of money we pay for some health care related goods and services, but will not have a significant impact on our daily lives.
The employer mandate has caused some companies to cut down full-time workers to part-time to avoid providing benefits, however major employers like Disney and Walmart have actually increased their full-time workforce in response to the looming 2015 deadline.
Overall the benefits tend to outweigh the costs for the average American as even those who pay a little more, get a lot more in return due to the increased quality of their health insurance.
Will I pay More Taxes and High Premiums Because of ObamaCare?
As mentioned above premium rates and the taxes you will have to pay are primarily based on income. Aside from income premium prices are based on which plan you choose, family size, age, smoking status and geography. Subsidies reduce the overall rate of your premiums (however smoking is calculated after subsidies). Come 2018 there will be a 40% excise tax on high end health insurance plans.
Aside from the tax provisions that require Americans to obtain insurance and subsidize its costs, ObamaCare also includes a few tax related provisions that work as consumer protections including requirements for better reporting and the Medical Loss Ratio.
I suspect this whole Obamacare law was written for revenge. I suspect Ezekiel wrote this maze of illegal crap in retaliation for Valerie kicking his brother out of the WH.
Obamacare is right out of Karl Marx.
Karl Marx HATED the middle class.
He wanted their blood FLOWING in the streets.
Using Marx’s ideas to help the middle class is like using Hitler’s ideas to help the Jews.
But the middle class keeps voting for this - so what do you want me to say?
I suspect you’ve posted that nonsensical thought on about 500 threads by now.
Then why did Ezekiel write this illegal maze of crap?
Because he’s an Anti-American marxist bent on destroying America?
I received this from a friend
This is about the best explanation I have seen yet about what the democratic party is. Everybody wants something for nothing but people who are responsible know that somebody has to pay for those who dont (whether they cant or wont same difference, somebody has to pay for it).
Im a 54 year old consulting engineer and make between $60,000 and $125,000 per year, depending on how hard I work and whether or not there are work projects out there for me.
My girlfriend is 61 and makes about $18,000 per year, working as a part-time mail clerk.
For me, making $60,000 a year, under ObamaCare, the cheapest, lowest grade policy I can buy, which also happens to impose a $5,000 deductible, costs $482 per month.
For my girlfriend, the same exact policy, same deductible, costs $1 per month. Thats right, $1 per month. Im not making this up.
Dont believe me? Just go to www.coveredca.gov, the ObamaCare website for California and enter the parameters Ive mentioned above and see for yourself. By the way, my zip code is 93940. Youll need to enter that.
So OK, clearly ObamaCare is a scheme that involves putting the cost burden of healthcare onto the middle and upper-income wage earners. But theres a lot more to it. Stick with me.
And before I make my next points, Id like you to think about something:
I live in Monterey County, in Central California. We have a large land mass but just 426,000 residents - about the population of Colorado Springs or the city of Omaha.
But we do have a large Hispanic population, including a large number of illegal aliens, and to serve this group we have Natividad Medical Center, a massive, Federally subsidized county medical complex that takes up an area about one-third the size of the Chrysler Corporation automobile assembly plant in Belvedere, Illinois (see Google Earth View).
Natividad has state-of-the-art operating rooms, Computed Tomography and Magnetic Resonance Imaging, fully equipped, 24 hour emergency room, and much more.
If you have no insurance, if youve been in a drive-by shooting or have overdosed on crack cocaine, this is where you go. And its essentially free, because almost everyone who ends up in the ER is uninsured.
Last year, 2,735 babies were born at Natividad. 32% of these were born to out-of-wedlock teenage mothers, 93% of which were Hispanic. Less than 20% could demonstrate proof of citizenship, and 71% listed their native language as Spanish. Of these 876 births, only 40 were covered under [any kind of] private health insurance. The taxpayers paid for the other 836.
And in case you were wondering about the entire population - all 2,735 births - less than 24% involved insured coverage or even partial payment on behalf of the patient to the hospital in exchange for services. Keep this in mind as we move forward.
Now consider this:
If I want to upgrade my policy to a low-deductible premium policy, such as what I had with my last employer, my cost is $886 per month. But my girlfriend can upgrade her policy to the very same level, for just $4 per month. Thats right, $4 per month. $48 per year for a zero-deductible, premium healthcare policy - the kind of thing you get when you work at IBM (except of course, IBM employees pay an average of $170 per month out of pocket for their coverage).
I mean, its bad enough that I will be forced to subsidize the ObamaCare scheme in the first place. But even if I agreed with the basic scheme, which of course I do not, I would *never* agree to subsidize premium policies. If I have to pay $482 a month for a budget policy, I sure as hell do not want the guy Im subsidizing to get a better policy, for less that 1% of what I have to fork out each month for a low-end policy.
Why must I pay $482 per month for something the other guy gets for a dollar? And why should the other guy get to buy an $886 policy for $4 a month? Think about this: I have to pay $10,632 a year for the same thing that the other guy can get for $48. $10,000 of net income is 60 days of full time work *as an engineer*. $48 is something I could pay for collecting aluminum cans and plastic bottles, one day a month.
Are you with me on this? Are you starting to get an idea what ObamaCare is really about?
ObamaCare is not about dealing with inequities in the healthcare system. Thats just the cover story. The real story is that it is a massive, political power grab.
Do you think anyone who can insure himself with a premium policy for $4 a month will vote for anyone but the political party that provides him such a deal?
ObamaCare is about enabling, subsidizing, and expanding the Lefts political power base, at taxpayer expense.
Why would I vote for anyone but a Democrat if I can have babies for $4 a month?
For that matter, why would I go to college or strive for a better job or income if it means I have to pay real money for healthcare coverage?
Heck, why study engineering when I can be a schlub for $20K per year and buy a new F-150 with all the money Im saving?
And think about those $4-a-month babies - think in terms of propagation models. Think of just how many babies will be born to irresponsible, under-educated mothers. Will we get a new crop of brain surgeons and particle physicists from the dollar baby club, or will we need more cops, criminal courts and prisons? One thing you can be certain of: At $4 a month, theyll multiply, and multiply, and multiply. And not one of them will vote other than Democrat.
ObamaCare: Its all about political power.
ObamaCare = Jiffy Lube
A lot of middle class families are going to be hurting.
Then every doctor will retire & find another line of business.
My husband is now on medicare & asked his doc what changes Obamacare might have for him. The response was none, because he’d been a patient for years. But the doctor & the hospital would not be accepting any new Medicaid or medicare patients, as the reimbursement rates are too low.
Tough luck for all these folks thinking they’d be getting medical care for ‘free’!
But that took a lot of time and thought to write such a disastrous maze of illegal crap. Was he commissioned to do this? How much was he paid?
good list, thanks
The next step will be to require doctors to accept all Medicaid patients. Doctors have an option now and that’s a weakness in the program that will have to be fixed. The next time Dems run the whole show.
Yea, if the can force a baker to make a cake for a gay couple, they can require doctors to take all comers. At that point, the problem won’t be insurance, it will be finding a doctor as they’ll all quit & do something else.
Yep. We’ll be importing them from Pakistan and India.