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“Your Taxes Won’t Go Up By A Single Dime”
Written By : McQ

Wasn’t that the promise? Well Americans For Tax Reform have looked at the 1990 pages of the House monstrosity and found 13 taxes that will indeed raise yours by much more than a “dime” [HT: United Liberty]. Here are just three of them. You can take a look at the entire list here. [pdf]

  • Employer Mandate Excise Tax (Page 275): If an employer does not pay 72.5 percent of a single employee’s health premium (65 percent of a family employee), the employer must pay an excise tax equal to 8 percent of average wages. Small employers (measured by payroll size) have smaller payroll tax rates of 0 percent (<$500,000), 2 percent ($500,000-$585,000), 4 percent ($585,000-$670,000), and 6 percent ($670,000-$750,000).
  • Medicine Cabinet Tax (Page 324): Non-prescription medications would no longer be able to be purchased from health savings accounts (HSAs), flexible spending accounts (FSAs), or health reimbursement arrangements (HRAs). Insulin excepted.
  • Individual Mandate Surtax (Page 296): If an individual fails to obtain qualifying coverage, he must pay an income surtax equal to the lesser of 2.5 percent of modified adjusted gross income (MAGI) or the average premium. MAGI adds back in the foreign earned income exclusion and municipal bond interest.

As everyone has been saying since the beginning of the debacle, there is no way this can be paid for without increasing taxes – and not just on the rich. Why that seems to fall on deaf ears in some circles remains a mystery to me. While the taxes may not effect everyone, they certainly effect a large portion of the public. For instance:

  • Excise Tax on Medical Devices (Page 339): Imposes a new excise tax on medical device manufacturers equal to 2.5 percent of the wholesale price. It excludes retail sales and unspecified medical devices sold to
    the general pulic.

Does anyone want to try to make the argument that the 2.5% tax at the wholesale level will be paid at that level and not passed on to the consumer? Yeah, I didn’t think so.

For the masochists out there, here’s the House bill, all 1990 pages of it in pdf form. Make sure you consider the purpose: “To provide affordable, quality health care for all Americans and reduce the growth in health care spending, and for other purposes.”

“… and for other purposes”. When you see that, you should know to grab your wallets and hold on tight.

[Crossposted at QandO]

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  • wylie_e_coyote

    We need to remember that the actual “Death Panel” is the WHOLE Obamacare system. What kills people in single payer/socialist medicine systems is the rationing/waiting lists and lack of innovation.

    The clowns (politician and gov employees) would not have the gut to actually send some to tell you that you are slated to die – its just done by the use of formulas, regulations, etc that set up who gets priority on the various waiting lists.

    The closest approximation to that you might see in the bill would be a group called “Comparative Outcome Boards” or “Health Comminsioners”. Those will be the guys who are empowered to begin the regulations that deny treatments or start rationing.

    The whole thing about “end of life” counseling being a paid treatment in HR 3200 is what people usally fixate on but that not the “Death Panel” – again, the WHOLE SCHEME is a virtual death panel but no such board ever exists or notification ever given by a person in the Democrats or other countries government run systems.

    Conservatives need to understand this and explain it in this terms or elses its easy for liberals to dismiss the “end of life” counseling as simply paying for a treatment – that just a small, small part of the whole death panel government HC system.

    Politicians will always cling to the fiction that “nobody will be denied effective treatment” by simply placing you on a rationing/waiting list without explaination from your provider except maybe “those are the rules”

    They will just confuse the issue with clever formulas, boards, etc that will be sent to providers in the form of regulations, rules, treatment protocols, etc that force of law will compell them to follow – you will never see a human face to attribute the denial to as its systemic.

    And of course, certain treatments for whatever reason will simply be refused to EVERYONE by the system by being declared “experimental” or “not cost effective”

    Which is the real crime/abuse of this so-called “reform” – what should be a personal/family decision between you and your HC provider (maybe at worst add in your HC insurance company for the covering payments they may provide if you choose to have one) suddenly becomes a matter of politics/collective decsion. You being a lobby of one have virtual zero say in the matter and whats worse the provider and the insurance have MUCH more accountability to the goverment then you the patient. Basically, it will be an ugly lobbying food fight between every organized interest group in the country to get the government to fund treatments that benefit their special interest. The rich and the politically conntected/popular interests will benefit – the weak, politically unpopular groups, and unorganized (that is to say the common man) will get the short end every time with little recourse. And of course, the rich and politically connected will be able to call in favors to “jump ahead” in priority of treatment as they do in Canada, GB, Cuba etc (so animals will always be more equal then others).

    In our current HC system, since you still retain individual choices, you always have options for treatment or payment. You can change insurance companies, doctors, hospitals, etc. You can sue too. You can self-pay. You have have a large degree of control.

    In the new government run HC system (yes, with or without a “government option” its still government run HC/Nationalization since the Feds will dictate you participate by buying insurance to there specifications, they set all the rules, and fund the scam thru new taxes and subsidies) you have no recourses except politics. You are enslaved more then ever to DC. Which is the goal – more power for liberal politics.

    To remain a free and independent people this MUST be defeated.

  • http://networdblog.blogspot.com/ Christopher_Taylor

    Yeah well… "You Lie" works in more than one area.

  • TheRightNut

    So, if I don't buy health care ins. my taxes go up? Am I reading that right?

  • rmiller

    Posted by TheRightNut

    2009-10-30 23:05:20

    Could be…if you are relying on the public to finance your emergency care.

  • aharris

    Could be…if you are relying on the public to finance your emergency care.

    Posted by rmiller

    2009-10-31 00:14:38

    You mean "will be." The mandate requires you to carry health insurance no matter what, not just if you can't pay out of pocket. And expect the goalposts to move on what is considered an acceptable insurance policy by the government, too. In Massachusetts, they've already changed their thinking on what costitutes acceptable health care coverage catching people who have health insurance with the punitive tax. You see, in Massachusetts, they've had something very much like this for around 3 years, and it's sinking the state budget miserably.

  • rmiller

    You mean "will be." The mandate requires you to carry health insurance no matter what, not just if you can't pay out of pocket.

    Posted by aharris

    2009-10-31 00:41:28

    Of course it does.

    Is there any reason not to carry health insurance?

    Unless you are willing to pay for any medical issue out of your own pocket, health insurance should be mandatory. Yes…'will be'…is the correct description.

    That's the opt out function. You will pay for all your own medical costs…..not the public, not the emergency room, …

    you will be allowed to die, if you opt out…

  • CabotAR

    Good God!! Another politician that continues to insult us with lies. Of course our taxes will go up & we are being forced to accept it.

    Want to know what Obama & congress has next in store for us? There is a new, political thriller just out about a small town that stands up to federal tyranny & ends up starting the 2nd American Revolution. It's insightful & I recommend it for everyone to read cause it's about todays threats to each of us if we want to save America. Read it & see what's nxt & what each of us can do. Read it & prepare!
    http://www.booksbyoliver.com

  • http://PatriotPost.US bthewolf

    Unless you are willing to pay for any medical issue out of your own pocket, health insurance should be mandatory.

    Posted by rmiller

    2009-10-31 01:00:48

    Thank you Chairman Mao, for proving that you know nothing about the free market, and are more than willing to allow the govt to tell me how EXACTLY I MUST spend MY money.

  • BIG

    Employer Mandate Excise Tax – This will have far reaching effects on America. Companies that are just over the $500K payroll will layoff employees to get under that threshold. We will see many small companies split into several companies to keep the payrolls under the $500K. But this will mean more work for lawyers and accountants setting up these new comapnies.

    For every tax congress creates, there are many people out there that will come up with ways to avoid paying them. If the tax burden becomes too great, people will take their money and leave. Look at NY for an example. They raise taxes on the rich expecting to raise revenues and revenues actually decrease.

  • tblrk2006

    Posted by rmiller

    2009-10-31 00:14:38

    Dude you must be ignorant. If you dont have proof of insurance, be it private or public, the govt will garnish your bank account. Thats why there is a provision in there that gives them access to your funds. If you are without private coverage, than they are charging you for public and by default you are covered.

  • http://www.superdickery.com mightysamurai

    Unless you are willing to pay for any medical issue out of your own pocket, health insurance should be mandatory.

    Wow. Didn't think you'd ever out yourself as a closet fascist so blatantly.

    Mandatory? It should be mandatory for me to buy health insurance? Why, because you say so? Since when are you the arbiter of what's good for everyone else?

  • aharris

    That's the opt out function. You will pay for all your own medical costs…..not the public, not the emergency room, …

    Sorry, rmiller, since the excise tax is levied in your income tax, you don't have any choice. It will be part of your yearly taxes; there is no "opt out" at the individual level unless decide not file return, but even then, they've already stiffed you via FICA.

    Oh, and this bill does not contain any opt out function anywhere. The Senate bill might, but we haven't seen it yet. And that "opt out" is on a state level; I'll further bet that even if your state opts out, the Feds will still take their taxes as if you were opted in.

  • http://networdblog.blogspot.com/ Christopher_Taylor

    Given that the president already signed a bill raising taxes on liquor and cigarettes, he's broken the "no more taxes" pledge in record time. President Bush the elder got endless attacks and mockery for doing that, Obama? Not so much. I guess nobody really expected him to keep a single promise he made.

    Well, he is a politician, and a Democrat at that.

  • rmiller

    Oh, and this bill does not contain any opt out function anywhere. The Senate bill might, but we haven't seen it yet. And that "opt out" is on a state level; I'll further bet that even if your state opts out, the Feds will still take their taxes as if you were opted in.

    Posted by aharris

    2009-10-31 10:58:11

    You know what? I'll concede all of your points. Any bill passed by this Congress will have flaws. Even the reconciliation between the House and Senate will not satisfy either liberals or conservatives.

    You win.

    But even if health care reform is defeated in this term of Congress and Presidency….

    will the issue go away?

    There's a reason why health care reform is a hot button issue.

    What's the conservative solution?

  • http://rightwingrocker.blogspot.com RightWingRocker

    What's scary is that he could come up with all this money and more by cutting taxes. Of course he won't do that … it sounds too much like right.

    RWR
    http://www.rightwingrocker.com

  • http://rightwingrocker.blogspot.com RightWingRocker

    What's the conservative solution?

    Remove all the government intrusions that ALREADY EXIST …

    What do you thing HMOs are?

    RWR
    http://www.rightwingrocker.com

  • http://networdblog.blogspot.com/ Christopher_Taylor

    What's the conservative solution?

    Again?

    OK here goes:

    1) work to set up medical savings plan structures so people can set aside money that they could only spend on medical care, thus injecting personal responsibility into health care and concern over costs. This tends to limit frivolous or excessive use of insurance, and makes it more an emergency expense rather than "ooh I cut my finger."

    2) Reform tort law to protect doctors and discourage frivolous and income lawsuits (the kind where people sue to make money as a job rather than as legal recourse).

    3) Change the laws so that insurance companies can sell across state lines.

    4) ?Equalize the tax laws so that employer-provided health insurance and individually owned health insurance have the same tax benefits. Now employer health insurance benefits are fully tax deductible, but individual health insurance is not. (this is a quote from Mackey's plan, because he puts it succinctly).

    5) Lower taxes so that individuals have more liquidity and are better able to care for themselves and others in need. Charitable giving always goes up in better economic times, and people with more money can help friends and family more.

    6) Utterly eliminate Medicare and Medicaid in all its various forms and assist states in setting up their own version if they wish. Cut taxes equivalent to this vast reduction in government spending.

    This isn't new, any of it. We've said this over and over. Just because people don't want to listen doesn't mean it hasn't been said.

    Bonus: it addresses both costs and personal responsibility, as well as shrinking the federal government to constitutional boundaries and stimulating the economy. The Democratic Party plan does none of this. It just tries to make everything more socialist with the idiotic, baseless presumption that government does everything better.

  • http://networdblog.blogspot.com/ Christopher_Taylor

    There's a reason why health care reform is a hot button issue.

    Oh yeah, that line. Its not a hot button issue. If you ask people what their most pressing issue is, health care reform won't even make the top 10 for any of them.

    Its only a hot button issue to leftists and Democratic Party politicians. Sort of like Campaign Finance Reform: only a hot button issue to politicians. People are concerned about the economy, not about health care reform. Maybe they ought to be… but they aren't. It isn't a hot button issue.

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