New taxes with Obamacare, American middle class and physicians targeted

The bill includes substantial income tax increases one would expect in a separate tax bill (such as 'Surtax on investment income.') For a country in a depression, heading for worse, this bill shows the utter contempt congress and Obama have for the American middle class, who are bullied and mocked for even asking what's in the bill our money is paying for. Doctors are treated like secretaries. This is not a health care bill, and it proves the American middle class is without representation.

1/14/11, "Comprehensive list of tax hikes in ObamaCare," ATR.org, Ryan Ellis

"Next week, the U.S. House of Representatives will be voting on an historic repeal of the Obamacare law. While there are many reasons to oppose this flawed government health insurance law, it is important to remember that Obamacare is also one of the largest tax increases in American history. Below is a comprehensive list of the two dozen new or higher taxes that pay for Obamcare’s expansion of government spending and interference between doctors and patients.

Individual Mandate Excise Tax(Jan 2014): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the higher of the following

	1 Adult	2 Adults	3+ Adults
2014	1% AGI/$95	1% AGI/$190	1% AGI/$285
2015	2% AGI/$325	2% AGI/$650	2% AGI/$975
2016 +	2.5% AGI/$695	2.5% AGI/$1390	2.5% AGI/$2085

Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS)

Employer Mandate Tax(Jan 2014): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for all full-time employees. This provision applies to all employers with 50 or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer).

Combined score of individual and employer mandate tax penalty: $65 billion/10 years

Surtax on Investment Income ($123 billion/Jan. 2013): This increase involves the creation of a new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 single). This would result in the following top tax rates on investment income

	Capital Gains	Dividends	Other*
2010-2012	15%	15%	35%
2013+ (current law)	23.8%	43.4%	43.4%
2013+ (Obama budget)	23.8%	23.8%	43.4%

*Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations. It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income. It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans. The 3.8% surtax does not apply to non-resident aliens.

Excise Tax on Comprehensive Health Insurance Plans($32 bil/Jan 2018): Starting in 2018, new 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family). For early retirees and high-risk professions exists a higher threshold ($11,500 single/$29,450 family). CPI +1 percentage point indexed.

Hike in Medicare Payroll Tax($86.8 bil/Jan 2013): Current law and changes:

	First $200,000 ($250,000 Married) Employer/Employee	All Remaining Wages Employer/Employee
Current Law	1.45%/1.45% 2.9% self-employed	1.45%/1.45% 2.9% self-employed
Obamacare Tax Hike	1.45%/1.45% 2.9% self-employed	1.45%/2.35% 3.8% self-employed

Medicine Cabinet Tax($5 bil/Jan 2011): Americans no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin)

HSA Withdrawal Tax Hike($1.4 bil/Jan 2011): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

Flexible Spending Account Cap – aka “Special Needs Kids Tax”($13 bil/Jan 2013): Imposes cap of $2500 (Indexed to inflation after 2013) on FSAs (now unlimited). . There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.

Tax on Medical Device Manufacturers($20 bil/Jan 2013): Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax. Exemptions include items retailing for less than $100.

Raise "Haircut" for Medical Itemized Deduction from 7.5% to 10% of AGI($15.2 bil/Jan 2013): Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI). The new provision imposes a threshold of 10 percent of AGI; it is waived for 65+ taxpayers in 2013-2016 only.

Tax on Indoor Tanning Services($2.7 billion/July 1, 2010): New 10 percent excise tax on Americans using indoor tanning salons

Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D($4.5 bil/Jan 2013)

Blue Cross/Blue Shield Tax Hike($0.4 bil/Jan 2010): The special tax deduction in current law for Blue Cross/Blue Shield companies would only be allowed if 85 percent or more of premium revenues are spent on clinical services

Excise Tax on Charitable Hospitals(Min$/immediate): $50,000 per hospital if they fail to meet new "community health assessment needs," "financial assistance," and "billing and collection" rules set by HHS

Tax on Innovator Drug Companies($22.2 bil/Jan 2010): $2.3 billion annual tax on the industry imposed relative to share of sales made that year.

Tax on Health Insurers($60.1 bil/Jan 2014): Annual tax on the industry imposed relative to health insurance premiums collected that year. The stipulation phases in gradually until 2018, and is fully-imposed on firms with $50 million in profits.

$500,000 Annual Executive Compensation Limit for Health Insurance Executives($0.6 bil/Jan 2013)

Employer Reporting of Insurance on W-2(Min$/Jan 2011): Preamble to taxing health benefits on individual tax returns.

Corporate 1099-MISC Information Reporting($17.1 bil/Jan 2012): Requires businesses to send 1099-MISC information tax forms to corporations (currently limited to individuals), a huge compliance burden for small employers

“Black liquor” tax hike(Tax hike of $23.6 billion). This is a tax increase on a type of bio-fuel.

Codification of the “economic substance doctrine”(Tax hike of $4.5 billion). This provision allows the IRS to disallow completely-legal tax deductions and other legal tax-minimizing plans just because the IRS deems that the action lacks “substance” and is merely intended to reduce taxes owed."...

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Reference: 1/3/11, "HHS is paying Google with taxpayer money to alter "Obamacare" search results," Weekly Standard, updated

"The "accurate information" that Americans will glean about the massive health care overhaul from this HHS website is of the same sort that President Obama has supplied all along -- such as that Obamacare would lower health costs (only 17 percent of Americans believe this), increase the quality of care (only 22 percent believe this), and reduce deficits (only 17 percent believe this).

You won't find anything on the HHS site about how the Medicare chief actuary projects that Obamacare would bend the cost curve upward by $311 billion by 2019 in relation to costs in the absence of Obamacare; about how the Congressional Budget Office (CBO) says that, by 2016, in the non-group market, the average American family's health care premiums under Obamacare would increase by $2,100 per year in relation to what those premiums would be without Obamacare; about how the CBO projects that Obamacare would cost over $2 trillion in its real first decade (2014 to 2023) alone; or about how the administration's internal ("midrange") estimates are that more than half of all employer-provided health plans wouldn't be grandfathered in under Obamacare – and that, therefore, if you like your health care, that doesn't necessarily mean you'll get to keep your health care.

For that sort of information, you'll have to consult sites that – because they don't use taxpayer dollars to pay Google to list them first – appear somewhat lower in the pecking order.

Using taxpayers' money to alter the results of search engines and to control the flow of information is disturbing on multiple levels. It's particularly disturbing when it's done to promote a massive expansion of government power, like Obamacare. And one wonders how – or if – it's even legal.

Perhaps the new House of Representatives will want to ask the unelected Secretary Sebelius to explain how, or why, she thinks such use of taxpayers' money to promote a particular -- and highly unpopular -- political agenda is legally or substantively justifiable.

UPDATE: As alert readers have discovered, the Obama administration is paying Bing with taxpayer money as well -- at least for "Obamacare," "Obamacare info," and "Obamacare overview."

UPDATE II: (January 4, 4:00 PM EST) Interestingly, the Obama administration now appears to have pulled its ad on Google -- or perhaps Google made the decision to quit running it. But the administration's paid entry still comes up first if you search for "Obamacare" through Bing, and it also comes up first (after "Stories") if you search through Yahoo! (On Yahoo!, "Obamacare and elderly," "Obamacare and abortion," and the like, also show up as paid entries.) In fact, when the playing field is evened -- that is, when the administration isn't using taxpayers' money to channel people to its site -- then www.healthcare.gov doesn't even crack the first 50 pages of Google's listings for "Obamacare." "

via Drudge Report