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Obamacare's new taxes, many have no idea what's coming

By Catholic Online (NEWS CONSORTIUM)
May 1st, 2013
Catholic Online (www.catholic.org)

Here's the list of new tax hikes that Americans will be expected to pay as they struggle to fund the Obamacare debacle. According to President Obama, the majority of Obamacare is already in place. What isn't mentioned is that the tax increases won't hit until next year's tax season. Those taxes will hit very hard.

LOS ANGELES, CA (Catholic Online) - Although some of the largest taxes are imposed on people earning more than $200,000 per year, or large firms such as insurance companies and manufacturers, it should be understood that this was simply a way to convince ordinary citizens, whose earnings are much less, to support the package. However, it will soon be much easier for those thresholds to drop.

In fact, they will have to as insurers hike rates to pass along punishing Obamacare taxes to their clients. That means you.

Here is a list of the new taxes most people and businesses will have to pay. Eventually, these costs will trickle down to the individual consumer. They may not manifest themselves in direct form for some time, but they will be evident across the board.  Fewer jobs in healthcare, slashed wages and hours, and higher costs are predicted. All these will occur because private companies don't like to lose revenue year-over year. Instead, they find ways to recoup costs from individual consumers.

The government isn't in the habit of lowering costs or taxes either. Eventually, you will be the one who pays these rates.

Surtax on investment income:
Capital Gains 23.8%
Dividends 43.4%
Other 43.4%

Medicare payroll tax increase:
Workers 1.45%
Self-employed workers 2.9%

After the first $200,000 in income, you will pay:
Workers 2.35%
Self-employed 3.8%

The Obamacare Medical Device Tax will impose a 2.3 percent tax on gross sales. You will pay this every time someone needs a medical device, either yourself directly, or indirectly via higher premiums.

The Obamacare High Medical Bills Tax takes away your deduction for having high medical bills in a given year. If your medical expenses exceeded 7.5 percent of your AGI, you could claim the credit. Now that threshold is raised to 10 percent.

The Obamacare Flexible Spending Account Tax is specially designed for the 10 percent or so of Americans who use a pre-tax spending account to pay for medical needs will be capped at $2,500. This will mean more out-of-pocket expenses for ordinary consumers like yourself. Parents of special needs children commonly use these plans to provide for their kids. Those parents will be especially hard hit by the changes. However, it will bring Obama $13 billion to spend.

In 2014, just eight months from now, you will be required to purchase a qualifying insurance plan from Obama's list. If you do not pay to play, you will be taxed from 1 percent of your AGI to a high of 2.5 percent.

This tax will hit middle to lower-class people who for whatever reason cannot afford insurance. Typically, individuals will opt to pay the tax because it will be less than buying insurance. This will become increasingly problematic as insurance rates continue to skyrocket, growing the ranks of the uninsured and increasing tax revenues for Obama.

The Obamacare Employer Mandate Tax corrects employers who do not meet their sacred Constitutional obligation to provide health care for employees. The tax is $2,000 per full-time employee if the employer has more than 50 on their payroll. If the employee later buys insurance through an exchange, the penalty rises to $3,000, just to punish the employer for refusing to play along. If the employer has a reasonable waiting period, such as 30-60 days, there is an additional penalty of $400 per employee. After 60 days, it becomes $600.

The easy fix is to cut hours or to lay off staff, something many employers have already done or are preparing to do.

Did you find it in the Constitution yet?

The Obamacare Tax on Health Insurers will impose a whopping 40 percent tax on union member or Early retiree health insurance plans. It's Obama's way of thanking the unions.

High-cost plans, often referred to as "Cadillac" plans will be heavily taxes. Look for these to impact your premiums as the costs get spread out, as late as 2018.

The costs for everyone will go up. As everything becomes increasingly expensive, firms will raise their rates, forcing the government to raise further taxes. Eventually there will need to be a government cap on the private earnings of insurers and providers (definitely not in the Constitution) or the system will collapse under its own weight, taking the economy with it.

In trying to save everybody, Obama has managed to bring everyone down. No, not all at once, it will take time, but it will happen.

If you want to make something expensive, you regulate it. Good work, pushing that agenda, Obama! What a great victory for you.

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