Thursday, December 26, 2013

The New ObamaCare Taxes And Fees Coming In2014

Come the New Year, our Dear Leader has a number of taxes and fees hidden deep in the ObamaCare law and the accompanying HHS regulations scheduled to affect your insurance premiums and income-tax bills.

Here are just a few of the things our president has planned for you:

  • The new taxes and fees have a 2 percent levy on every health plan, whether you have a waiver or not or whether you're one of the lucky ones with employer provided healthcare. That's expected to net about $8 billion for ObamaCare in 2014 and increase to $14.3 billion by 2018.

    Then there’s also a $2 fee per policy that goes into a new medical-research trust fund called the Patient Centered Outcomes Research Institute.

    Your insurer is going to pass that on to you in the form of higher premiums,deductibles and co-pays.

  • Then there's this beauty. Under ObamaCare, An individual taxpayer earning more than $200,000 and a married couple earning more than $250,000 will get hit for an added 0.9 percent Medicare surtax on top of the existing 1.45 percent Medicare payroll tax. They’ll also pay an extra 3.8 percent Medicare tax on unearned income, such as investment dividends, rental income and capital gains. That term 'unearned income' is a real insult, since this money was already taxed once as income before it was invested. What we're talking about here is double taxation.

    But wait, there's more. There's no threshold on these taxes for inflation. This means that unless there's a fix of some kind or ObamaCare's repealed, more and more people will be subject to these taxes as inflation boosts incomes.

  • Starting in 2014, your employer (and, of course, that means you since it will be passed onin one form or another) will begin paying a fresh new $63 annual ObamaCare fee, to cover the extra cost of insuring other people’s pre-existing conditions.The money will go into a fund administered by the Health and Human Services Department and is supposed to be used to cushion health insurance companies from the costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.

    Since the president has now torpedoed the individual mandate, expect both the amount of people waiting until they get sick to apply for insurance as well as the amount of this fee to skyrocket.

  • Things as diverse as your kid's braces, hip and knee replacements and even veterinary bills are going to be affected by a brand spankin' new 2.3 percent excise tax on medical devices. Lefties don;t realize that businesses don't pay taxes and fees, they simply build them into the prices they charge consumers.

    Of course, when it comes to prostheses and hip and knee replacements, you may not be able to get them at any price if you're not deemed worthy by the The Independent Payment Advisory Boards, AKA Death Panels.

  • The threshold for Medical Itemized Deductions gets raised from 7.5% to 10% of AGI. Currently, those of you who paid high medical expenses not reimbursed by your insurance are allowed a deduction if those expenses exceed 7.5 percent of your adjusted gross income (AGI). The new provision imposes a threshold of 10 percent of AGI.

  • And by the way, the HHS regulations allow Secretary Sebelius to raise most of these fees and taxes 'at the secretary's discretion.'

    The results of ObamaCare are going to be pretty self evident unless it's totally repealed fairly quickly.We're already seeing the signs.

    Healthcare is going to be rationed extensively, especially on the middle class who don't qualify for subsidies.Do not be surprised if, ultimately,it is used as a political weapon against th eregimes's perceived 'enemies' just as the IRS was.

    The 28 hour work week will slowly become the standard work week (four 7 hour days), as people settle into more government dependency and lower expectations and income for themselves and their children. In fact, birth rates will lower, especially among people with the middle class idea of actually being able to support their own offspring before having them.I've already seen examples in my own life of married couples who simply decided they couldn't afford to have children and maintain even a lower middle class lifestyle. Often, it amounted to a series of postponements that ended when the woman involved simply became too old for childbirth.

    Businesses will be increasingly more difficult to start, and a lot less people will have the ambition or be able to raise the capital to do so.That will affect both employment and income.  Most small businesses get their start up money not from bank loans, but from an individual's savings or personal credit line. Less income means less business startups.

    Expect a Soviet-style 'black market'  economy based on barter, off th ebooks employment and under the table cash sales to develop as well.

    Working two or more jobs to pay the bills will become extremely common for many people with families to support or any ambitions for themselves or their children. Others will happily fall into what amounts to a permanent dependent class. The massive increases in people on what amounts to permanent disability and in food stamp payouts are indicators of what will become a growing trend. After all, if it's a choice between becoming the payer or the payee, the screwed or the beneficiary, a lot of people are gong to opt for that second option.

    Unless it's repealed, ObamaCare is going to transform our national character into something very different. We can still turn things around, but the hour gets late.


    louielouie said...

    Expect a Soviet-style 'black market' economy based on barter, off th ebooks employment and under the table cash sales to develop as well.

    here's an off-the-books question for ff.
    and just what would one of the merchandise be that you would expect to quadruple in price?

    B.Poster said...

    Eventually the whole system will collapse of its own weight but that would be EXTREMELY painful for many good people. I pray it does not come to that. Hopefully this whole thing will be repealed before this happens.

    The problem is socialism does not work. Whenever it has been tried, it has failed. The only thing keeping it afloat in some cases has been 1.)massive low interest, no strings attached loans from the IMF usually at the expense of the American taxpayer (essentially gifts at the expense of "capitalist" America, 2.)selling oil or other natural resources to "capitalist" America at inflated prices that America spent the money and research extracting and bringing to market, or 3.)some combination of 1 and 2. Now that America has decided to go fully socialist/communist who is going to bail out America when it's experiment fails the same as the others did or would have without America to bail them out?

    Btw, I think Milton Friedman had it about right when he stated that the biggest supporters of socialism are university professors and high ranking business executives for large corporations. Also, for America's economic system "capitalism" is in parantheses because America has not practiced a true capitalist economic system for decades. The economic system used by America is more like a socialist/capitalist hybrid that is closer to socialism and getting closer to that system almost by the day.