659.) President Obama has raised taxes on countless Americans. He slipped these tax hikes in right under our noses when he signed Obamacare into law. As it turn’s out Nancy Pelosi was right when she said they had to pass the bill for us to find out what was in it. American’s For Tax Reform released a list of what they claim to be the worst tax hikes in theObamacare legislation that will kick in in 2013. The following are the top five worst taxes imposed upon the American people under Obamacare, as rated by American’s for Tax Reform.
Number 5.) The ObamaCare Medical Device Tax. Did you know that over 400,000 people in this country work in 12,000 manufacturing plants producing various medical devices? Well President Obama must have seen this as a great form of tax revenue, because he signed into law a 2.3% excise tax on those companies. This tax applies to these companies even if they do not make a profit in a given year. That works out to be about a $20,000,000,000 tax hike. Now my question for you is how does raising taxes to the tune of $20 billion dollars on the companies that make medical devices help drive down health care costs? How does increasing the cost of doing business help a company increase the quality of a product? All this tax increase does is take money these companies could have spent on research and development, or perhaps creating new jobs, and instead gives it to the government to waste.
Number 4.) The Obamacare Special Needs Kids Tax Hike. I found describing this part of the report hard, so I figure I will let the report speak for itself. The following is a direct quote from the report.
“The 30-35 million Americans who use a Flexible Spending Account (FSA) at work to pay for their family’s basic medical needs will face a new government cap of $2,500 (currently the accounts are unlimited under federal law, though employers are allowed to set a cap).
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 several million 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. This Obamacare Tax provision will limit the options available to these families.”This provision in Obamacare amounts to a $13,000,000,000 tax increase.
Number 3.) ObamacareSurtax on Investment Income. In Obamacarethere is a 3.8% increase on investment income on houses making at least $250,000(200,000 single). Below is a chart provided by Americans For Tax Reform:
Please note: The table above also incorporates the scheduled hike in the capital gainsrate from 15 to 20 percent, and the scheduled hike in dividends rate from 15 to39.6 percent.
So now I must ask the question, how does taxing investmentincome help bring down health care costs, more importantly what does taxing investment income have to do with lowering health care costs? All I can see it succeeding in doing is making people less likely to invest in companies, which hurts the economy.
Number 2.) The Obamacare Haircut for Medical Itemized Deductions. Currently Americans who have high medical expenses are allowed a deduction for the amount those expenses exceed 7.5% of adjusted gross income. President Obama thought that the rate of 7.5% was too low, so he saw fit to raise it to 10%. This widens the taxable income for those Americans who are sick and suffering. So tell me, Obamacare was supposed to help the poor and expand coverage to every American, so how does raising taxes by $15,200,000,000 on the sickest American’s help them? President Obama claims that Republicans want to push granny off a cliff, but President Obama approved of legislation that will harm countless people near or in retirement, you know those who followed the rules, paid into the system, and now have a limited income and rising medical costs. So again I ask how does raising taxes on these people help them?
Number 1.) The ObamaCare Medicare Payroll Tax Hike. Currently Medicare payroll tax rates stand at 2.9% on all wages and self employment profits. President Obama clearly thought this rate was too low, so he saw fit to raise that rate to 3.8% on wages and profits exceeding $200,000 ($250,000 for married couples) What this works out to is a direct tax hike on small business owners, the people who employ other Americans and help drive the economy. Below is a chart from American’s For Tax Reform comparing the current medicare payroll tax rate vs. Obamacare Medicare Tax Rates.
So how is raising taxes to the tune of $86,800,000,000 not going to hurt the economy? How is this massive tax increase going to encourage hiring?
If you are interested in reading the report for yourself,here is a link to it.