Monday, July 9, 2012

Want to Stop Middle Class Tax Hikes? Repeal Obamacare…

Given the President’s talk today about wanting to stop tax increases on the middle class, it’s worth pointing out that Obamacare contains massive tax increases that will be borne by taxpayers with incomes under $250,000.  According to a list compiled by the House Ways and Means Committee (based on Joint Committee on Taxation estimates), Obamacare imposes a whopping $248,000,000,000 in tax increases that will be primarily, if not exclusively, borne by the middle class.  Still don’t believe me?  Take a look below:

OBAMACARE’S NEW TAXES AND PENALTIES AMOUNT IN BILLIONS OVER 10 YEARS
  • New 40% excise tax on certain high-cost health plans
 $32.0
  • New ban on purchase of over-the-counter drugs using funds from FSAs, HSAs, and HRAs
 $5.0
  • Increase, from 7.5% to 10% of income, the threshold after which individuals can deduct out-of-pocket medical expenses
 $15.2
  • Impose a new $2,500 annual cap on FSA contributions
 $13.0
  • New annual tax on health insurance
 $60.1
  • New annual tax on brand name pharmaceuticals
 $27.0
  • New 2.3% excise tax on certain medical devices
 $20.0
  • New 10% tax on indoor UV tanning services
 $2.7
  • New tax on insured and self-insured health plans
 $2.6
  • Double the penalty for non-qualified HSA distributions
 $1.4
  • Individual Mandate Penalties
 $17.0
  • Employer Mandate Penalties
 $52.0

What’s more, several new Obamacare tax increases on the middle class will take effect on January 1:  The $2,500 cap on Flexible Spending Arrangements; the higher threshold for deducting medical expenses, and the 2.3% “wheelchair tax” on medical devices, which according to the Congressional Budget Office will “be largely passed through to consumers in the form of higher premiums for private coverage.”  If the President REALLY wants to prevent a middle-class tax increase, why won’t he repeal all these Obamacare taxes as well?

With all these tax increases on the way, is anyone surprised that the IRS has hired thousands more new agents to track down Obamacare “tax scofflaws?”  What’s clear is that thanks to Obamacare, no one will be able to spell insurance without the letters I-R-S.  What’s also clear is that the best way to avoid all these crushing middle-class taxes is to repeal Obamacare in its entirety.