Saturday, June 30, 2012

Twenty-one New Obamataxes--Count em

We have already considered the 0.9% payroll tax that will be implemented to fund Obamacare.  And the additional 3.8% tax on dividends, capital gains and investment income for those Americans earning over $200,000 (single)/250,000 (married)--the selfish rich as the president and Nancy Pelosi refer to them.  We also reviewed the cadillac tax on high cost health care plans.  The cadillac tax that the unions have been exempted from but the average American will pay to obtain good health care.  It apparently pays to cozy up to bureaucrats in this Administration.  

These taxes are just the tip of Obamatax iceberg.  The excise tax on medical  device manufacturers means that anyone needing a medical device of any sort (and the definition is sweepingly broad as only the government can sweep)  will pay an additional 2.3%--at the very least--to obtain the device.  Projected to raise $20B in 2010, the current estimate from the House Ways and Means Committee is $34.2B.  If there is one thing we know about government estimates, they are usually low and routinely revised upward.  Look no further than the weekly jobs/unemployment report which is revised upward week after week.    

In addition to the annual tax on health insurance providers (this is in addition to the cadillac tax)--estimated at over $100B--which will undoubtedly raise the premiums dramatically for all those who remain in private plans, the most ridiculous Obamatax is the 10 percent tax on tanning services.  True to Washington form: find the group with the weakest lobbyist presence and tax it.

 The House currently estimates that gross tax increase from Obamacare will exceed $800 billion over the next decade. My humble assumption is that the total will be revised dramatically upward just as the cost for Obamacare has been revised up from the original estimate of $900B to close to $3 trillion by the CBO.  

You can check out the numbers yourself by copying the link below.  The Ways and Means Committee has produced a handy table of the 21 Obamataxes.

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