Obamacare – 5 major taxes to hit your wallet in 2013
Everyone thinks they are going to get medical insurance free, but far from it. The law is so complex, your average citizen doesn’t understand what it all means, so let’s go over 5 key points on how this law is soon to be funded. This is what Obama has failed to explain to us.
Even though his mandate gets most of the attention, the ObamaCare law actually contains 20 new or higher taxes on the American people. These taxes are gradually phased in over the years 2010 (with its 10 percent “tanning tax”) to 2018 (when the tax on comprehensive health insurance plans kicks in.) By 2013, 5 of these taxes start kicking in.
The ObamaCare Medical Device Manufacturing Tax:
A 2.3% tax on medical device makers will raise the price of every pacemaker, prosthetic limb, stent, and operating table. So Obama, just how will raising taxes on these devices lower costs? The tax will be levied on gross sales and even targets companies who haven’t turned a profit yet. These are usually companies with less than 20 employees who come up with new technology. As a result of this $20 billion tax over the next ten years, these companies will not hire new employees. Some companies already have cut research and development.
The ObamaCare High Medical Bills Tax:
This tax will hit Americans facing the highest out-of-pocket medical bills. Currently, Americans are allowed to deduct medical expenses on their 1040 form to the extent the costs exceed 7.5% of one’s gross income.
So the Obamacare provision will raise that to 10% thus subjecting patients with a higher tax bill. This tax will hit pre-retirement seniors the hardest. Over the next ten years, affected Americans will pony up a minimum total of $15 billion in taxes thanks to this provision. Fox News
The ObamaCare Flexible Spending Account Cap:
There are right now, 24 million Americans who have Flexible Spending Accounts will face a new federally imposed $2,500 annual cap, which today, have no federal limit. We use these to purchase everything from contact lens to braces for our children. Already, braces can cost as high as $7200, so now parents will have to decide whether or not it’s worth it for their child to have braces.
And families of special needs children whose tuition can be covered using FSA funds. Special-needs tuition can cost up to $14,000 per child per year. This cruel tax provision will limit the options available to such families, all so that the federal government can squeeze an additional $13 billion out of taxpayer pockets over the next ten years. Fox News
Also the ObamaCare “medicine cabinet tax” which since 2011 has barred the 13.5 million Americans with Health Savings Accounts from purchasing over-the-counter medicines with pre-tax funds.
The ObamaCare Surtax on Investment Income:
In 2013, the capital gains tax will rise from 15 to 20% and the top dividend rate rises from 15 to 39.6%. The new ObamaCare surtax takes the top capital gains rate to 23.8 percent and top dividend rate to 43.4 percent. The tax will take a minimum of $123 billion out of taxpayer pockets over the next ten years. And finally so far —-
The ObamaCare Medicare Payroll Tax increase
Over the next 10 years this tax will soak employers $86 billion. So thank you Obama for screwing us royally, while your medical is paid by taxpayers…..