Posts Tagged ‘$120k a year’

ObamaCare Is A TAX. It Is The Largest Middle Class Tax Increase In History. And It Will Bankrupt America.

July 10, 2012

ObamaCare is a TAXThe key part of the Supreme Court decision that allowed ObamaCare to stand had this to say:

“The Federal Government does not have the power to order people to buy health insurance. Section 5000A would therefore be unconstitutional if read as a command. The Federal Government does have the power to impose a tax on those without health insurance. Section 5000A is therefore constitutional, because it can reasonably be read as a tax.”

ObamaCare was ONLY allowed to stand if it was deemed a “tax.”  Which means it is either a tax or it is unconstitutional.  Period.

The second major thing to understand is that ObamaCare is the largest tax on middle class in the history of America:

Obamacare: Biggest Middle Class Tax Hike in American History
Sunday, July 01, 2012 6:11

Nearly 75% of Obamacare costs will fall on people earning $120,000 or less per year.

Democrats lied to the American people when they claimed that the mandated payment for refusal to purchase health insurance wasn’t a tax. Then, the administration argued that it was a tax before the Supreme Court. Now, they’re denying that it is a tax after Chief Justice Roberts declared the penalty payment to be a tax.
 
From Gateway Pundit:
 
A Fraud Has Been Perpetrated On the American Citizenry
 
Democrats told us Obamacare was not a tax. Then they went before the Supreme Court and argued that it was a tax. Now they’re saying it’s not a tax again.
 The American Spectator reported:

Critics of the majority’s decision will say for the foreseeable future that Chief Justice Roberts rewrote Obamacare to save it. Michael Carvin, who argued against Obamacare before the Supreme Court, noted dryly, “I’m glad he rewrote the statute instead of the Constitution.”
 
Carvin’s summary of the Supreme Court’s ruling was on target: “What the Obama Administration… thought they were doing was completely unconstitutional; what they lied to the American people about was constitutional.… Unfortunately they got away with that bait-and-switch. A fraud has been perpetrated on the American citizenry.”
 
In oral arguments before the Supreme Court, the administration’s attorneys argued — as they knew they had to — that the mandate was constitutional as a tax. This despite the fact that Democrats passed Obamacare by stating specifically and repeatedly that the mandate was not a tax, including a testy response by President Obama himself to unusually challenging questioning by ABC’s George Stephanopoulos in 2009.
 
As recently as a few months ago, President Obama’s budget director said in a Congressional hearing that the mandate is not a tax, with Health and Human Services Secretary Kathleen Sebelius saying “it operates as a tax, but it is not per se a tax.”
 
If the bill had been marketed to members of Congress and the public as a tax, it is unlikely that even the Cornhusker Kickback and the Louisiana Purchase would have been enough to pass the law, despite the large Democrat congressional majorities at the time. Senator Lindsey Graham (R-SC) said that “if it had been seen as a tax, they wouldn’t have gotten ten votes, much less sixty.”
 
As for those Democrats in Congress who have argued, and may continue to argue, that the Obamacare mandate is not a tax, Graham said “they either don’t know what they’re doing, or they lied to us. So this is a huge issue in the fall.” Graham called for every Congressional Republican who is up for election to ask their Democratic opponents whether they support this tax increase; given that Democrats have little choice but to support Obamacare, this is the political equivalent of asking someone if he has stopped beating his wife yet, and a solid political tactic.

 Nearly 75% of ObamaTax costs will fall on the backs of those Americans making less than $120,000 a year.

The Gateway Pundit article title centers on the sheer moral depravity of the Democrat Party who “told us Obamacare was not a tax. Then they went before the Supreme Court and argued that it was a tax. Now they’re saying it’s not a tax again.”

Many Democrats and even many elements in the Obama White House are refusing to call the tax a tax.  But Valerie Jarrett at least admitted the following:

“We will take it any way we can get it. I mean we argued both ways…we thought that it fell within the commerce clause, the court ruled it was…um, a tax, but we really look at it as a penalty, whatever they want to call it.”

She went on to say in the same interview:

“A country as wealthy as ours A country as wealthy as ours is now going to provide healthcare for everyone.”

Which is another way of saying she recognizes that it is pure socialism and that you middle class people ought to pay for the poor who vote Obama to have something that will give them more incentive to keep voting Obama.

Let’s take a look at the taxes that Democrats said were NOT taxes and then argued that they WERE taxes and are now arguing that the taxes that they said weren’t taxes until they said were taxes are now not taxes again:

Obamacare Tax Hikes Irk Taxpayers; Illegal aliens, prisoners exempt
By Car Czar Consulting

Car Czar Consulting says:

Here’s a Comprehensive List of Tax Hikes in Obamacare.

Next week, the U.S. House of Representatives will be voting on an historic repeal of the Obamacare law. While there are many reasons to oppose this flawed government health insurance law, it is important to remember that Obamacare is also one of the largest tax increases in American history. Below is a comprehensive list of the two dozen new or higher taxes that pay for Obamcare’s expansion of government spending and interference between doctors and patients.

Individual Mandate Excise Tax(Jan 2014): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the higher of the following

  1 Adult 2 Adults 3+ Adults
2014 1% AGI/$95 1% AGI/$190 1% AGI/$285
2015 2% AGI/$325 2% AGI/$650 2% AGI/$975
2016 + 2.5% AGI/$695 2.5% AGI/$1390 2.5% AGI/$2085

Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS)

Employer Mandate Tax(Jan 2014): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for all full-time employees. This provision applies to all employers with 50 or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer).

Combined score of individual and employer mandate tax penalty: $65 billion/10 years

Surtax on Investment Income ($123 billion/Jan. 2013): This increase involves the creation of a new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 single). This would result in the following top tax rates on investment income

  Capital Gains Dividends Other*
2010 15% 15% 35%
2011-2012 (current law) 20% 39.6% 39.6%
2011-2012 (Obama budget) 20% 20% 39.6%
2013+ (current law) 23.8% 43.4% 43.4%
2013+ (Obama budget) 23.8% 23.8% 43.4%
*Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations. It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income. It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans. The 3.8% surtax does not apply to non-resident aliens.

Excise Tax on Comprehensive Health Insurance Plans($32 bil/Jan 2018): Starting in 2018, new 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family). For early retirees and high-risk professions exists a higher threshold ($11,500 single/$29,450 family). CPI +1 percentage point indexed.

Hike in Medicare Payroll Tax($86.8 bil/Jan 2013): Current law and changes:

  First $200,000
($250,000 Married)
Employer/Employee
All Remaining Wages
Employer/Employee
Current Law 1.45%/1.45%
2.9% self-employed
1.45%/1.45%
2.9% self-employed
Obamacare Tax Hike 1.45%/1.45%
2.9% self-employed
1.45%/2.35%
3.8% self-employed

Medicine Cabinet Tax($5 bil/Jan 2011): Americans no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin)

HSA Withdrawal Tax Hike($1.4 bil/Jan 2011): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

Flexible Spending Account Cap – aka“Special Needs Kids Tax”($13 bil/Jan 2013): Imposes cap of $2500 (Indexed to inflation after 2013) on FSAs (now unlimited). . There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.

Tax on Medical Device Manufacturers($20 bil/Jan 2013): Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax. Exemptions include items retailing for less than $100.

Raise “Haircut” for Medical Itemized Deduction from 7.5% to 10% of AGI($15.2 bil/Jan 2013): Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI). The new provision imposes a threshold of 10 percent of AGI; it is waived for 65+ taxpayers in 2013-2016 only.

Tax on Indoor Tanning Services($2.7 billion/July 1, 2010): New 10 percent excise tax on Americans using indoor tanning salons

Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D($4.5 bil/Jan 2013)

Blue Cross/Blue Shield Tax Hike($0.4 bil/Jan 2010): The special tax deduction in current law for Blue Cross/Blue Shield companies would only be allowed if 85 percent or more of premium revenues are spent on clinical services

Excise Tax on Charitable Hospitals(Min$/immediate): $50,000 per hospital if they fail to meet new “community health assessment needs,” “financial assistance,” and “billing and collection” rules set by HHS

Tax on Innovator Drug Companies($22.2 bil/Jan 2010): $2.3 billion annual tax on the industry imposed relative to share of sales made that year.

Tax on Health Insurers($60.1 bil/Jan 2014): Annual tax on the industry imposed relative to health insurance premiums collected that year. The stipulation phases in gradually until 2018, and is fully-imposed on firms with $50 million in profits.

$500,000 Annual Executive Compensation Limit for Health Insurance Executives($0.6 bil/Jan 2013)

Employer Reporting of Insurance on W-2(Min$/Jan 2011): Preamble to taxing health benefits on individual tax returns.

Corporate 1099-MISC Information Reporting($17.1 bil/Jan 2012): Requires businesses to send 1099-MISC information tax forms to corporations (currently limited to individuals), a huge compliance burden for small employers

“Black liquor” tax hike(Tax hike of $23.6 billion). This is a tax increase on a type of bio-fuel.

Codification of the “economic substance doctrine”(Tax hike of $4.5 billion). This provision allows the IRS to disallow completely-legal tax deductions and other legal tax-minimizing plans just because the IRS deems that the action lacks “substance” and is merely intended to reduce taxes owed.

This boondoggle is going to be the anvil that broke America’s back.


Follow

Get every new post delivered to your Inbox.

Join 517 other followers