A Tax By Another Name

The penalty for not purchasing health insurance is a “tax” declared Chief Justice Roberts. There are other taxes that are scheduled to come into being after the 2012 election. Taxes are the mechanisms which are suppose to sustain the costs for ObamaCare and middle class Americans will not escape them despite what Obama proclaims.

Here are some examples:

Medical Itemized Deduction Hurdle: This year you may have qualified to have you medical expenses as a federal income tax deduction because they exceeded the 7.5% requirement. ObamaCare will push that amount higher to 10% in 2013. This will have a major impact on seniors who spend a lot on medicine and doctor bills and those who have health issues.

Flexible Spending Account (FSA) Cap: This has consequences for those parents who have special needs children. Now parents can deposit an unlimited amount of money into these accounts before taxes. Beginning in 2013, ObamaCare limits deposits to $2,500 per year. What is onerous about the law is that funds in these accounts help pay the expenses for a child in a special needs school. Special needs schools often cost more than $14,000 per year.

Tax on Medical Device Manufacturers: This is a hidden tax because it is imposed on sellers of medical devises that cost $100 or more. The 2.3% excise tax will be added to the price of medical devices thus driving up the cost of various “medical devices ranging from mobility assistance devices to personal testing supplies.” Taxes on manufacturers and retailers are always passed on to the consumer so the middle class will definitely be paying higher prices.

What people need to remember is that the Democratic members of Congress never read the bill, they admitted it was too long to read, and they made sure that many of its measures would not become known or have an impact until after the 2012 election. Politics at play!

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About camden41

Retired public school administrator Retired history professor: Taught Western Civilization, American Civil War, United States History, Economic History, Ancient & Medieval Foundations, American History Since 1945
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