Advocacy

Obama Sees Middle Class Tax Increase as a Victory

The Largest Tax Hike in US History has just been upheld by the Supreme Court of the United States and President Obama sees this assault on the middle class as a victory.

The already unpopular 2010 health care reform law has been converted by the court into a $1.76 trillion tax increase funded by escalating taxes to be paid  the vast majority of taxpayers. The high court’s ruling leaves in place 20 tax increases in the health-care law, of those, 12 tax hikes would affect families earning  less than $250,000 per year, including a “Cadillac tax” on  high-cost insurance plans, a tax on insurance providers, and an excise tax on medical device manufacturers. By formally converting ‘Obamacare’ into ‘Obamatax,’ the court allows Obama to raise taxes on the middle-class.

The decision is a distressing blow to taxpayers and represents the single largest tax increase on young people in the nation’s history. When it takes full effect, the Internal Revenue Service will have immense new power and authority to persecute and prosecute a whole new group of taxpayers.

If the law takes full effect, it will devastate small businesses and destroy any chance for a sustainable economic recovery. It will add trillions of dollars to the national debt and push the country toward bankruptcy even faster than current projections. Any individual who believes that this decision must be overturned must do everything possible to undo the damage that has been done, especially at the ballot box on November 6.

Obamacare law contains 20 new or higher taxes on American families and small businesses–

WASHINGTON, DC – Obamacare contains 20 new or higher taxes on American families and small businesses. Arranged by their respective effective dates, below is the total list of all $500 billion-plus in tax hikes (over the next ten years) in Obamacare, where to find them in the bill, and how much your taxes are scheduled to go up as of today:

Taxes that took effect in 2010:

1. 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. Bill: PPACA; Page: 1,961-1,971

2. 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. Bill: Reconciliation Act; Page: 108-113

3. “Black liquor” tax hike (Tax hike of $23.6 billion).  This is a tax increase on a type of bio-fuel. Bill: Reconciliation Act; Page: 105

4. 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. Bill: PPACA; Page: 1,971-1,980

5. 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. Bill: PPACA; Page: 2,004

6. Tax on Indoor Tanning Services ($2.7 billion/July 1, 2010): New 10 percent excise tax on Americans using indoor tanning salons. Bill: PPACA; Page: 2,397-2,399

7. 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). Bill: PPACA; Page: 1,957-1,959

8. 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. Bill: PPACA; Page: 1,959

Tax that took effect in 2012

9. Employer Reporting of Insurance on W-2 (Min$/Jan 2012): Preamble to taxing health benefits on individual tax returns. Bill: PPACA; Page: 1,957

Taxes that take effect in 2013

10. Surtax on Investment Income ($123 billion/Jan. 2013): 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: Bill: Reconciliation Act; Page: 87-93

Capital Gains Dividends Other*
2012 15% 15% 35%
2013+ 23.8% 43.4% 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.

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

First $200,000 ($250,000 Married) Employer/Employee All Remaining WagesEmployer/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

Bill: PPACA, Reconciliation Act; Page: 2000-2003; 87-93

12. 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. Exempts items retailing for <$100. Bill: PPACA; Page: 1,980-1,986

  13. 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. Waived for 65+ taxpayers in 2013-2016 only. Bill: PPACA; Page: 1,994-1,995

14. Flexible Spending Account Cap – aka “Special Needs Kids Tax” ($13 bil/Jan 2013): Imposes cap on FSAs of $2500 (now unlimited). Indexed to inflation after 2013. 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. Bill: PPACA; Page: 2,388-

2,389

15. Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D ($4.5 bil/Jan 2013) Bill: PPACA; Page: 1,994

16. $500,000 Annual Executive Compensation Limit for Health Insurance Executives ($0.6 bil/Jan 2013).

Bill: PPACA; Page: 1,995-2,000

Taxes that take effect in 2014

17. 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). Bill: PPACA; Page: 317-337

18. 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. 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). Bill: PPACA; Page: 345-346

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

19. Tax on Health Insurers ($60.1 bil/Jan 2014): Annual tax on the industry imposed relative to health insurance premiums collected that year. Phases in gradually until 2018.  Fully-imposed on firms with

$50 million in profits. Bill: PPACA; Page: 1,986-1,993

Taxes that take effect in 2018

20. 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).  Higher

threshold ($11,500 single/$29,450 family) for early retirees and high-risk professions. CPI +1 percentage point indexed. Bill: PPACA; Page: 1,941-1,956

 

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59 Comments on "Obama Sees Middle Class Tax Increase as a Victory"

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Larry Brooks
3 years 9 months ago
America is full of special interest groups. Obama was coached by Clinton on how to be elected and its the same tactics Clinton used to get elected into office “slick willy”. Obama told women that they would get things, told blacks that everything would go their way (more benefits), well you know all muslims voted for him, then told homosexuals and lesbians what they needed to hear for their special interests, then spouted off about change which got all the stupid sheeps following him. Well thats the majority !!! The purpose of running for office now is to simply get elected. It does not matter what you promise or intend, its to get elected. After being elected then you line your pockets with money and retire after four years. How do they get all those millions over four years???? America is full of dumb people that don’t really care about… Read more »
Spriana
3 years 11 months ago
The numbers are so large that one can’t wrap one’s head aronud them. That’s how the politicians get away with demagoguing their favorite positions. Allow me to illustrate with a picture.Plug the following numbers into a spreadsheet, then convert them into a bar graph. You will be amazed.National Debt: $14.3 Trillion (eleven zeroes)Current Deficit: $1.7 Trillion (eleven zeroes)Spending Cut Compromisefrom the latestContinuing Resolution: $30.38 Billion (seven zeroes)While we’re on the subject of politicians lying (gasp!) don’t buy the promises of reducing the deficit 10 or 20 years in the future. I call BS on that. Future Congresses will not be bound by anything the current Congress promises. Furthermore, any talk of reducing the deficit is still a red herring. The deficit is just the current year shortfall. We will not reduce the debt until the annual deficits are less than zero. I want to hear a plan to reduce the… Read more »
Lou
4 years 9 days ago

It is worse if a company had to lay off worrkes recently and tries to hire again. They pay a penalty rate, often for several years. The unemployment compensation premiums act as a deterrent to hiring.

alton mccarley
4 years 2 months ago

”Why” are congress and the senate sitting on their thumbs,and allowing our president to do
whatever he pleases without sufficient opposition that would stop him.?

Phil
4 years 2 months ago

Talk to your friends, relatives, neighbors, fellow workers, everyone about the upcoming election. They need to understand how important it is to vote Obama OUT! Obama wins……..as a people and a nation, we LOSE!

Bob Budd
4 years 2 months ago

Our next Presidential election (November) may well be our LAST free election if Obama is re-elected. Please! think about that when you vote!

Lisa
4 years 2 months ago

I question whether we will have the freedom to vote THIS November!

Bob
4 years 2 months ago

The next Presidential election may well be our LAST presidential election if we re-elect Obama. Please keep that in mind when you vote!

Lawrence B.
4 years 2 months ago

All that this President needs to do is creat a peace plan in the Middle East { a plan of seven years duration] to fulfill another prophecy. Good Old No. 666 WY TO GO Mr Obama.

alton mccarley
4 years 2 months ago

I disagree the Antichrist suppose to be smart and have a solution for the world
president Obama has neither.

Paul
4 years 2 months ago

He is the Anti Christ Came from the East, Kenya, charming and many week people are following him.
Russia and the Arabs will attack Israel but will lose 83% of their armies.God will save His people Then in the final battle at Armageddon Good with the Second Coming of Jesus Christ will be victorious

lb
4 years 2 months ago

Maybe you don’t work, but week, is different than weak.

Phil
4 years 2 months ago

No….don’t think the Obamster is the Anti-Christ. He’s not smart enough to pull that off.

Daniel Glenn
4 years 2 months ago

No, he may be dumb, but he could be the wounded head of the beas with seven heads! Ever notice
when the Arabs are somewhat Peacefull is when they are out of fighters? Then they wait until they’ve
reared new fighters and myrtars?

Daniel Glenn
4 years 2 months ago

Don’t forget to bombard telldc.com, become registered, and Post comments to the Politicians
that are in your Districts. Let’em know first hand how you feel. There are plenty of issues that can be addressed. Look forward to seeing many of you there!

Lawrence B.
4 years 2 months ago

This President lies every time he opens his mouth. It used to be more difficult to determine when he was lying. If his mouth moves it is a lie exiting. President in Chief of Deceit and Wrong Doing. My favorite Communist President of the Socialist States of America.. { or is it Czar in Chief?] Karl Marx would be proud.

alton mccarley
4 years 2 months ago

President Obama is not lining he just has a bad memory.

Lawrence B.
4 years 2 months ago

The question is Obama saying a lie used to be more dificult. Now he is lying if he says anything and eveEven when he looks us in the eye he is so well practiced he does not show the traits normally of looking away or down of most lyers.

Undazzled
4 years 2 months ago

Failing to embrace the truth with all your might leaves you vulnerable to every deception. Many in 2008 embraced a feel-good story without a reality check. Have they awakened? Do many think more incisively now? Let us hope so!

Perk Up
4 years 2 months ago

Just as the Good Word teaches us, we can not be “warm” we must be hot or cold. Stand on the Rock, stand firm, stand strong, stand together. In November, our voices MUST be heard. Let us take back our great Nation, under God, let us be Indivisible, and provide Justice for all. Amen.

tina
4 years 2 months ago

I actualy cried to read all the lies about our president!!! Where is all this horrible hatred coming from!!!
It must be from all the blubbering lies told to the sheep[ that listen to Rush Limbaugh. He brainwashed
his listeners to believe his every word and they are like a herd of sheep following his BIG MOUTH blatant lies!!!!

rcco
4 years 2 months ago

Get a grip Tina, no lies just the facts and the facts bear out this sham as a president!!!

AKV
4 years 2 months ago

Let’s not lose sight of the fact that congress still needs a good amount of cleaning out also, The reason Obama gets away with his tyranny is because the Senate lets him and the House of Reps is full of thieves on the take as well.

Gail Pipes
4 years 2 months ago

Read “Atlas Shrugged” if you want to see what is in store for America! If Obama wins a second term, this book which was published in 1957, will be the script for all of freedom-loving Americans. Who is John Galt?

Alec Rexroat
4 years 2 months ago

Gail hit it right on the head. Where will we go to get away from the gov?

Perk Up
4 years 2 months ago

You are so right Gail. I KNOW of people who are living in FEAR for the FUTURE of not only for themselves but for our great Nation. They are hiding food, weapons, preparing secret living quarters because of the FEAR that is holding them hostage due to the results of bringing obama and his minions into office. Why must they live this way? Why must WE live this way? Show up strong in November!!!

alton mccarley
4 years 2 months ago

If this man is re-elected we have no future. I say on Nov. 4th NOBAMA

Marjorie
4 years 2 months ago

I fear for our children’s future or lack thereof. when you travel through Europe you see what our fate might be.

mike taurino
4 years 2 months ago

our sons, daughters relatives and friends are in other countries fighting for our freedom, we should bring them home and have them fight for our freedom here!!

Tushi
4 years 9 days ago

One more thing about owning a house/condo: Anything that bekars, anything that needs to be maintained, you fix it or it doesn’t get fixed. One of the joys of renting is calling up the landlord and saying, The ______ is broken, come over and fix it, please.

ANNE
4 years 2 months ago

ALL I HAVE TO SAY IS WE HAVE TO VOTE HIM OUT OUT OUT OUTTTT

Bob Stevens
4 years 2 months ago

0bamao. He got into office the old fashioned way. He Lied, and paid off the media.

Carolyn
4 years 2 months ago

All of you True Christians need to fight back in Nov. If the government can make the Catholic religion’s teachings be against the law, what will he do next to the other Christian religions? Will freedom of religion and freedom of speech be against the law if the word of the Bible is being preached and taught in our churches? After all, that is not the koran.

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