Friday, June 29, 2012

The Taxorama is Just Getting Started

Undoubtedly you will recall when former Speaker, Nancy Pelosi (who was second in the presidential line of succession) so famously and embarrassingly said: We have to pass the (health-care) bill so we can find out what's in it.  Incomprehensible from the get-go, Ms. Pelosi was merely telegraphing to the entire country that we were not alone.  She, the chief lawmaker in the House,  had no idea what was in it either.   In fact, Justice Scalia quipped during oral arguments that reading the entire 2,700 page law was akin to "cruel and unusual punishment."

Clever line.  But I, for one, am not laughing.

One thing is clear: taxes will skyrocket and service will decline. We have no further to look than Canada or the UK to understand the way the Act will eventually play out.  But,  let's take a look at a few of the TWENTY-ONE NEW TAXES that are associated with the "Affordable Care Act".

From today's The Washington Times we learn that the so-called "Cadillac tax" on high-end health-care plans was originally estimated to raise $32 billion when the bill was first being marketed to the American people in 2010.  The June 2012 estimate from the House Ways and Means Committee is now $111 billion.  This tax is designed to penalize fortunate American's whose employer or union (although many of the unions have been exempted from the tax) provides a robust health care package by assessing a hefty tax on the benefit.

Or take the new payroll tax of 0.9% on wages and the new 3.8% tax on dividends, capital gains and other investment income for taxpayers making over $200,000 (individuals) and $250,000 (married).  The original estimate is that the two taxes would raise $210.2 billion, yet, the current estimate is now $317.7 billion.  In other words, in addition to the Bush tax cuts that will sunset on December 31st of 2012, the "Affordable Care Act" will add another nearly 5% in taxes on wages and investments.

And we're just getting started.  Perhaps, Justice Scalia would have been more accurate had he suggested that American's living under the 2700 page "Affordable Care Act" will be subjected to  "cruel and unusual punishment."  

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