MILLER: Obamacare’s hefty tax bill
President Obama promised to make health care more affordable, but instead he’s done the opposite. The White House and congressional Democrats slipped 20 new taxes into the Obamacare legislation to raise $500 billion to help pay for the new entitlement’s $2.6 trillion cost. It’s now up to the Supreme Court to provide relief.
Mr. Obama claims to want to raise taxes only on “millionaires and billionaires,” but his signature health care law hits the middle class hard. Americans for Tax Reform (ATR) analyzed the 2,700-page bill and came up with a comprehensive list of its levies.
“Obama promised no taxes of any kind for those who earn less than $250,000. Obamacare broke that pledge repeatedly,” ATR President Grover Norquist told The Washington Times. “They deliberately hid the taxes and wisely understood that delaying the pain by making the effective date after the election, maybe you could get through the election.”
Until last year, people could pay for over-the-counter medications with tax-free Flexible Savings Accounts and Health Savings Accounts. No more, thanks to Obamacare’s medicine cabinet tax. Starting on Jan. 1, these tax-free accounts will be capped at $2,500, punishing families who face higher than normal medical expenses. The threshold for deducting those costs will also go up from 7.5 percent to 10 percent of adjusted gross income in 2013.
The left mistakenly thinks companies will just absorb the extra charges from Uncle Sam and not pass them along to consumers. Medical-device manufacturers will be smacked with a 2.3 percent tax in the new year, driving up the costs of things like wheelchairs, stents and pacemakers. Innovative drug companies already are sending Washington $2.3 billion in taxes for a surcharge on their share of sales, which helps explain why prescription-drug spending will see a projected 10.7 percent increase in 2014.
That’s also when health-insurance companies face a new surcharge on sales that will result in an estimated $350 to $400 increase in annual premiums. So much for the president’s promise to reduce the cost of insurance by $2,500.
Americans who refuse to go along with Obamacare by buying a policy not approved by the government will be charged 1 percent of their income in 2014, rising to 2.5 percent in 2016. Employers with more than 50 employees who don’t offer health coverage and have at least one employee who qualifies for a health tax credit will be penalized $2,000 per person. If the employee receives coverage through this exchange, the penalty goes up to $3,000. An employer with a 30- to 60-day enrollment waiting period will have to pay $400 per person.
These new penalties on employers who don’t provide the health coverage dictated by bureaucrats will amount to $113 billion. Expect companies to pay less and lay off more. Growth will be further stunted when January brings a new levy on investment income for those who earn more than $200,000, making the tax on capital gains 23.8 percent and dividends a staggering 43.4 percent.
This monster law already has created 159 new programs and boards in Washington. As Mr. Norquist explained, “It’s a huge increase in the size and scope of government because the government is getting control of 15 percent of the economy.” The Supreme Court needs to reject this unconstitutional power grab and return the money to the people who actually earned it.
Emily Miller is a senior editor for the Opinion pages at The Washington Times.
- Critical Time: Justices Hear Arguments Against Obamacare (fox4kc.com)
- Justices Seem to Signal They Will Not Punt On ObamaCare, But Will Rule On Its Constitutionality (minx.cc)
- Obamacare In The Supreme Court 101: Deliberations, Rulings And Impacts (thedaleygator.wordpress.com)
- ObamaCare on Trial, Day One: A Case of “Inartful Drafting By Congress” (reason.com)
Posted on March 26, 2012, in AMERICAS, Economic planning, Economic policy, GEOPOLITICS, ObamaCare, Progressive Agenda, Tax Payer's Dime, United States and tagged BarackObama, Grover Norquist, Obama, Patient Protection and Affordable Care Act, President Obama, Supreme Court, Supreme Court of the United States, Washington Times, White House. Bookmark the permalink. Comments Off on MILLER: Obamacare’s hefty tax bill.