As many focus on the upcoming fiscal cliff, people are ignoring the taxes now guaranteed to take effect with the re-election of President Obama. The Supreme Court has ruled the healthcare mandate legal under Congress’s taxing authority and make no mistake there are plenty of taxes that will be going into effect to pay for the $1.8 trillion it is now projected to cost to subsidise the 30 million uninsured.
That’s a far cry from the $88 billion the Administration originally projected.
Of course, if you believed the original number you probably voted to re-elected the man.
There are a lot of taxes, penalties, regulations (call them what you want) in Obamacare costing Americans as much as $836 billion that have or will be put in place. I’m sure many of you see that this doesn’t even come close to covering the projected cost of $1.8 trillion. How they plan to make up the difference is a discussion for another day, I suppose.
First, let us look at what will happen on January 1, 2013.
The Obamacare Medicare payroll tax hike: The current tax is 2.9% on all wages or self-employment profits. This tax hike will place a 3.8% rate on all wages or profits beyond $200,000 for individuals or $250,000 per married couples. For those of you saying: “they’re rich they can afford to pay more,” that’s on top of the tax increase from letting the “Bush tax cuts” expire. This is a direct tax increase on small business owners who, in most cases, are liable for the self-employment tax.
The Obamacare tax on Medical devices: This tax imposes a 2.3% excise tax on U.S gross sales of medical devices. That tax is enforced even if the company does not make a profit. This tax will make everything from pacemakers to knee and hip replacements more expensive and has already had an impact on the jobs market. In Michigan, Stryker Corp. states the tax is the reason for their layoffs of 1,000 workers. Medtronic Inc, based in Minnesota, projects an annual charge against earnings of $175 million. Boston Scientific Corp has “outsourced jobs overseas” to tax friendlier Ireland and (wait for it) China in an attempt to offset their expected $100 million charge. Cook Medical Inc. scrapped plans to open a U.S factory.
Do you need more?
I can give you more.
But I think I’ve made my point.
The “Special Needs kids tax”: This is a new government cap of $2,500 on Flexible Spending Accounts. These accounts are utilised by over 30 million families to pay for their basic medical needs. The reason why it is deemed a “special needs kids tax” is many families of special needs children use these accounts to pay for special needs education. Capping these accounts will limit the education choices of these families
The medical expenses deduction hike: Current law allows Americans who incur high medical expenses to deduct those expenses exceeding 7.5% of their adjusted gross income. Under Obamacare the new threshold will be 10% of their adjusted gross income. This provision raises taxes on America’s sickest citizens.
The list of taxes is long and will be implimented for years to come. From the elimination of the tax deduction for employer-provided prescription drug coverage for Medicare recipients to an income surtax of 1% of adjusted gross income, rising to 2.5% by 2016, on individuals who buy a policy not approved by the govenment.
I can go on writing, but here’s a chart.
I know. I know
Why didn’t I just provide the chart in the first place.
I had something to say, but given the results of the election not many are listening.
They will be.
Yes, they will be.