Tuesday, July 03, 2012

ObamaCare's Taxes: A Beat-Down For The Middle Class

It ain't just about the mandate, Mitt.  It's about the slew of other taxes and limits and penalties that will fall upon the middle class under ObamaCare.  So be brave, and speak the truth.  Or abdicate, and let another with more cojones stand in your stead.

Here's a list of the most odious that will fall upon working class people:

Flexible Spending Account contributions will be capped at $2,500. Currently, there is no tax-related limit on how much you can set aside pre-tax to pay for medical expenses. Next year, there will be. If you have been socking away, say, $10,000 in your FSA to pay medical bills, you'll have to cut that to $2,500. 

The itemized-deduction hurdle for medical expenses is going up to $10,000. Right now, any medical expenses over $7,500 per year are deductible. Next year, that hurdle will be $10,000. 

The penalty on non-medical withdrawals from Healthcare Savings Accounts is now 20% instead of 10%. That's twice the penalty that applies to annuities, IRAs, and other tax-free vehicles. 

A 40% tax on "Cadillac Health Care Plans" starting in 2018.Those whose employers pay for all or most of comprehensive healthcare plans (costing $10,200 for an individual or $27,500 for families) will have to pay a 40% tax on the amount their employer pays. The 2018 start date is said to have been a gift to unions, which often have comprehensive plans. 

A"Medicine Cabinet Tax" that eliminates the ability to pay for over-the-counter medicines from a pre-tax Flexible Spending Account. This started in January 2011. 

A "penalty" tax for those who don't buy health insurance. This will phase in from 2014-2016. It will range from $695 per person to about $4,700 per person, depending on your income. (More details here.) A tax on medical devices costing more than $100. Starting in 2013, medical device manufacturers will have to pay a 2.3% excise tax on medical equipment. This is expected to raise the cost of medical procedures.

And if you're a more successful American - making $200K as a single or $250K jointly (barely middle class in New Jersey, BTW), well....you're gonna get pounded.  Next time, don't work so hard...

Mitt better get his sorry ass out there and make people aware of why they were so pissed off to begin with.  Don't be afraid of those polls, brother..it's a dead cat bounce...

1 comment:

Anonymous said...

where are you coming from?? if you earn over $250k you may not be a 1% 'er but you're at least a 10% 'er and yeah you should vote for romney. but none of those tax increases are much of anything and you know numb nuts...i mean wing nut..you're going to have to pay for medicare one way or another...unless you are a 1% 'er and you can pay for it privately. if that's the case... just go to your country club and preach to the choir...get off the internet!!!